IRS to refund 1.6 million people who missed tax filing deadlines during the pandemic

The Internal Revenue Service is sending refunds to more than a million Americans who filed their taxes late in the early days of the COVID-19 pandemic.

Typically, taxpayers who file returns late without an extension can expect to pay penalties of up to 25% of the amount of tax they owe. For 2019 and 2020, however, the agency is suspending penalties for people who filed late. Taxpayers who already paid a fine will automatically receive refunds, the IRS said on Wednesday.

More than 1.6 million taxpayers are set to receive refunds or credits totaling $1.2 billion — an average of $750 per person, although some may get more and some less. To qualify for late-penalty forgiveness, individual tax returns must be filed by September 30, 2022.