September is finally here and the IRS is set to issue interest checks to some taxpayers — and you might like to know if you'll qualify to get one. According to CNET, anyone who filed their taxes after April 15 could possibly receive another check, due to the processing time of their refund. The IRS has a policy of adding interest on refunds that took longer than the typical processing time. This year, since Tax Day was changed to July 15 because of the coronavirus pandemic, the IRS got behind on its refunds.
The outlet further notes that even though the time frame changed, the interest accrual period began on April 15, just like it usually does. What this means, essentially, is that many taxpayers might be getting some extra money with their regular tax refund. Eligible taxpayers for this payment are those who have not yet received their refund, or who received it late. As far as how much they can expect to receive, CNET explains that the IRS will pay 5% annual interest, compounded daily through June 30. Them on July 1, the interest rate decreased to 3%. This number means that for every $1,000 due back, one can expect to accumulate roughly 14 cents in interest per day between April 15 and June 30, After that it drops to about 8 cents a day.
It is important to note that this refund interest is not related to the stimulus check payments that the IRS was responsible for sending out, per the details of the CARES Act coronavirus relief bill. There have been negotiations on a second bill, which could include a second round of stimulus payments to Americans, but at this point, there is no official plan in place. While the details are all uncertain at this point, Treasury Secretary Steven Mnuchin has said in the past that both he and President Trump want to see a bill approved that includes stimulus payments.
In a July CNBC interview, Mnuchin stated that the president's priority is the bill. "This is a negotiation, so we need both Republicans and Democrats support, but we are on the same page with the Republicans," he said. "We've had very good meetings over the last few days, the President's priority is about kids and jobs. We need to be able to get kids back to school safely."
Mnuchin continued: "The Democrats had $100 billion in their HEROES Act. We've increased that to $105 billion, some of that money will be dependent on schools reopening and money used so that it can safely reopen his schools and jobs are going to open we need to make sure we don't have frivolous lawsuits."