By Leada Gore
The Internal Revenue Service is providing refunds to some 1.6 million taxpayers who missed the tax filing deadline during the early days of the COVID-19 pandemic.
Typically, the IRS penalizes people who file their taxes late without an extension up to 25% of the amount they owe. The tax agency announced last week, however, it was waiving the penalties for taxes filed late for the years of 2019 and 2020.
People who have already paid the penalty will receive an automatic refund, according to the IRS. The average refund will be $750 per person, totaling some $1.2 billion.
There is a deadline to qualify for the penalty refund. Individuals who have not yet filed returns for the years 2019 or 2020 must do so by Sept. 30 and most refunds will be sent out by the end of September.
Penalty relief is not available in all situations, including where a fraudulent return was filed or when it was assessed as part of a compromise agreement and will only cover specific penalties. You can go here to see the complete list of qualifying penalties.