THE TRANSATLANTIC MAGAZINE
If you filed your 2019 Tax Return by July 15 this year, and have either already received, or are in line to receive, a tax refund, you could be one of the nearly 13.9 million US taxpayers who will soon be receiving interest payments from the IRS.
This year's tax return deadline was extended to July 15 by the IRS as part of a relief package to support Americans during the coronavirus pandemic. As the Taxpayer Advocate Service (TAS) explain, because the postponement of the deadline was "disaster related", the IRS is required by law to pay interest, "calculated from the original April 15 filing deadline, if you filed your return by the extended due date."
The interest payments aren't likely to be huge, with TAS saying that, on average, interest payments will be around $18. However, if you receive an IRS payment direct into your bank account or via mail and are wondering what it relates to, we thought it would be useful to explain the situation. TAS advise that if you received a check, you'll know it's for an interest payment because it will be marked with the phrase "INT Amount".
TAS also explains that if you receive an interest payment above $10, you'll also need to declare it as taxable income for 2020/21. As well as receiving a payment, you'll also receive a copy of Form 1099-INT from the IRS in January 2021 to fill out to declare the interest payment.
For more detail on these interest payments, you can see the post on the TAS website at taxpayeradvocate.irs.gov/news/tas-tax-tip-you-may-receive-an-interest-payment-from-the-irs.