IRS Has Good News For People Filing Late, But There’s A Deadline

( Last month, the Internal Revenue Service announced that it would send rebate checks to some individuals and businesses who paid penalties after filing their 2019 or 2020 tax returns late. The agency also waived certain late-filing penalties that have yet to be paid provided the late returns were submitted before the end of September.

The special refunds, which on average would be about $750 per individual, were expected to begin hitting bank accounts by the end of last month.

According to the IRS, offering the late penalty forgiveness was to allow the agency “to focus its resources on processing backlogged tax returns and taxpayer correspondence” while they worked to “return to normal operations” before the 2023 filing season.

Those taxpayers who filed late and already paid the late-filing penalty did not need to contact the IRS to obtain their refund. Instead, the payments would be sent automatically.

Those who still hadn’t filed their 2019 or 2020 returns had until September 30 to submit their returns in order to qualify for the limited-time, late-filing penalty waiver.

The waiver covers the late-filing penalty of 5 percent per month for unpaid balances, capped at 25 percent, as well as late-payment penalties of 0.5 percent per month that may still apply.