Americans are growing frustrated as they wait for their tax refund from the IRS, but the amount expected will now be 5% greater. They should also be aware of scams and notices from the IRS.
Starting July 1, the interest rate at which the IRS will owe taxpayers will jump to 5%.
Whenever someone’s return takes longer than 45 days to process, the IRS is legally required to pay interest on your refund, according to CNBC News.
Right now the interest rate is 4%.
According to CBS News, the tax agency has over 8 million returns to process from 2020.
Now that number has reached over 15 million as of April. These are returns from both 2020 and 2021.
It’s entirely possible that millions of returns were submitted at once this year, drastically increasing the amount all at once.
In 2020 and 2021, the IRS extended the deadline.
In 2022 that deadline was April 18, 2022.
If you haven’t filed your taxes and aren’t waiting on a refund, you can still use the IRS Free File option until Oct. 17, 2022
It is urged by the IRS to file as soon as possible ahead of the Oct. 17 deadline, according to Somers’ Hamlet Hub.
If you failed to file your tax return even if you owe taxes, you can avoid additional penalties if you filing as soon as you can and pay in full.
If you owe and filed for an extension, that extension was only for the return, not an extension on paying.
Other tools the IRS offers include direct deposit for tax refunds, online payment, and obtaining your own tax and account records.
Some people are still receiving notices from the IRS, even though the IRS temporarily paused many of them.
People are specifically seeing CP14 letters, which is the Balance Due for Unpaid Taxes.
These are sent within 60 days of the IRS assessing tax liability.
Suspended letters include
- CP80: Unfiled Tax Return
- CP59 and CP759: Unfiled Tax Return(s) — 1st Notice
- CP516 and CP616: Unfiled Tax Returns — 2nd Notice
- CP518 and CP618: Final Notice — Return Delinquency
- CP501: Balance Due — 1st Notice
- CP503: Balance Due — 2nd Notice
- CP504: Final Balance Due Notice — 3rd Notice, Intent to Levy
- 2802C: Withholding Compliance letter
- CP259 and CP959: Return Delinquency
- CP518 and CP618: Final Notice — Return Delinquency
As the IRS releases information for current tax returns and refunds, they’re also letting the public know about IRS scams
KATC ABC reports a few different tactics scammers use during tax season.
One of the bigger scams is contacting people about stimulus payments.
Keep in mind the IRS will never call, text, message, or email a taxpayer.
Correspondence will always be done by mail.
Another issue is scammers filed fake unemployment claims during the pandemic.
You want to look for a Form 1099-G reporting unemployment you did not claim.
Another thing to be aware of are fake employment posts on social media.
As people struggle to find jobs, many scammers are taking advantage of that by posting fake job offers.
Finally, amid the pandemic, fake charities have popped up to try and take advantage of people offering money.
Samantha edits our personal finance and consumer news section. Have a question or lead? Send it to [email protected].