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We’ve received several messages from clients this week about mysterious money hitting their bank account from the IRS. What is going on?
The IRS has announced its plans to send interest payments to approximately 13.9 million taxpayers. These payments are generally issued separately from tax refunds and often come without notice.
If you receive one of these payments, don’t be alarmed…it’s yours to keep! Just know that this is considered interest money so the IRS will issue a Form 1099-INT to be reported as income on your 2020 tax return (only if the amount exceeds $10).
The IRS is required by law to add interest to tax refunds if taxpayers don’t receive their refund within 45 days after the return due date. This year is different than most in that the due date was July 15. However, the 45-day time period is still being applied from April 15. As such, a large number of folks will be eligible for this extra money.
So, if you’ve received this interest payment, it’s yours to keep…take it while the IRS is giving it!
Contact us any time with questions…we’re happy to help!