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IRS asks millions of Americans to wait before filing taxes

IRS Audits
Posted at 11:41 AM, Feb 07, 2023

The Internal Revenue Service is asking millions of Americans to wait to file their tax returns.

The agency says it's working to clear up questions about special tax refunds or payments made by states in 2022.

"There are a variety of state programs that distributed these payments in 2022 and the rules surrounding them are complex," the IRS stated.

California reports that it issued more than $9 billion in Middle Class Tax Refund payments. The state says the money benefitted more than 31 million California taxpayers.

While the state won't tax the refunds, residents were told that the refunds "may" be considered federal income.

Similar refunds were also given out in a slew of other states local governments attempted to help residents offset the rise of inflation and the lingering effects of the pandemic.

The IRS says it plans to offer guidance to as many states as possible as soon as this week.

"For taxpayers uncertain about the taxability of their state payments, the IRS recommends they wait until additional guidance is available or consult with a reputable tax professional," the IRS said.