my

Stimulus Update | IRS Pays Interest on Tax Refunds

what's up everybody I hope everyone is

doing well today welcome to the second

half of 2020 today is Wednesday July at

first no one to provide you with another

update about something a little bit

exciting to start off this half of the

year so the IRS was so backlogged with

sending out payments that they decided

to start paying you interest of 5% if

you file by July 15th you will likely

earn interest on that money so for all

of you that have asked me questions

about what am I going to get my tax

refund my refund is pinned and I found

my taxes I either filed it by paper I

found it online or whatever the case

might be but it still has been processed

yet and it's delayed has been held up

and I have not received my refund you're

gonna start getting a 5 percent interest

on that refund that's going to be

compounded daily I'm gonna talk to you

about that more stay tuned listen to

that there are 20 million additional

notices that are going out to

individuals as well about their taxes

thanks

20 million notices that were developed I

should say drafted these notices by the

IRS in early April in May but they're

just now starting to hit the mill stay

tuned I'm giving you information about

those notices that are coming so you can

be aware of everything that's coming

especially if there is a tax payment are

something else that you would need to

look out for stay tuned we're going to

talk about all that coming up next

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hello everyone my name is Paul Zachary

Shelton journey and I'm the chief

investment officer of Warrick Shore

Advisors we are a wealth and investment

management firm located in Orlando

Florida with clients all across the

United States if this is your first time

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beneficial to someone that you may know

so let's get into today's topic so first

off the IRS is sending our 20 million

collection notices that are starting to

hit the mail this week these notices for

notices that are due to be mailed out

over two months ago things that are

being drafted right before the pandemic

hit these letters were generated but

when everyone had to go home and when

everyone was on quarantine these

mailings did not go out in the mail so

there's mail that you're gonna be

getting there's about 20 million

households that are going to be

receiving a piece of mail which is a

collection notice now the collection

notice is going to be more than likely

dated with a past due date for that

collection already on there so this is

causing many people some of them that

already received it already to have

theirs that were mailed out early last

week we're starting to discard them and

saying hey this must be old I'm not

sending this out this is really old news

this is nothing new but please do not

throw that away because it is important

the IRS is starting to put inserts

inside of those envelopes now to give

you an updated payment schedule if there

are pasty taxes or anything that you do

Oh so please please be very cognizant in

that do not throw that away as I

mentioned before there are still about

4.7 million

paper returns that were filed that still

have not been

process and that are still sitting in

limbo right now and this was as of the

beginning I should say the middle of May

or so were six weeks after that now

there may be even more tax returns that

are sitting there that our paper returns

and additionally the deadline is not

until the 15th of this month so there

are more tax returns that could come in

and it could be paper returns I don't

know not many of them but there could be

more people that are still gonna feel

that tax returns within the next two

weeks or so so the process is going to

take a long time for the IRS to get all

those payments out to everyone so

they're going to reward people for a

door so it's actually something good

that's going to be happening and so in

that respect before I get to the reward

that the IRS is giving everyone I want

to advise you of something that is going

on with the IRS having mistakenly

flagged a IRS are flagged a tax return I

should say so I'm a read to you update

that they put on their website and it

says some taxpayers who were took whose

returns were mistakenly fault are

flagged by the IRS processing filters

are experice and lengthy delays and

receiving their refunds all tax returns

claiming refunds are pass through

filters designed to detect identity

theft and other types of refund fraud as

further says here that some of these

filters produce false positive rates 50%

of the time meaning half at a time that

a tax return goes through this filter

it's gonna be flagged as frie the issue

with this is that affected taxpayers are

often axed to mail and documentation to

substantiate their claims but the IRS

has not been open our process many of

their responses delaying their refunds

refund delays and have Aysen

get financial impact on low-income

taxpayers as refunds often constitute a

significant percentage of their annual

household incomes as we already know

that so to mitigate some of that the IRS

has decided to go ahead and pay five

percent interest on your late tax refund

and yes just like you were gonna ask it

is taxable so that means that you're

going to pay even more attacks next year

when the interest that you're getting

from their late return this year that's

just how the system works

so this says forget high interest

savings accounts the IRS is creating up

to five percent interest on late tax

returns the government agency announced

and with great interest on tax returns

that are issued after April of 15 so for

every one that we're seeing to attach

return before then you're not going to

get that interest payment but if you're

receiving it after April 15th

you're in luck if you know late Monday

the IRS and Treasury announced that

there will be no further delay on the

2019 tax filing season as you will call

on March 21st the IRS and Treasury

extended the tax filing deadline from

the regular April 15th deadline by three

more months and then yesterday the

agency said that the filing due date of

July 15th would not be postponed again

taxpayers who won't be ready by that

date can file for an automatic extension

but that's not an extension to pay your

taxes the IRS Commissioner testifying

before the Senate Finance Committee

today said there are a variety of

payment options available by the IRS to

help people and you can find out about

them on the IRS website now there is

some good news also for those who are

still do a tax refund if you file by

July 15th you will likely earn interest

on that money and based on the fact that

that was supposed to come on April 15th

so from that period until the date that

you get that refund you could be

receiving up to 5% interest on that

money that payment though will come

separately from your refund check

additionally

this only applies to those who meet the

deadline and file their taxes by July

the 15th so this gives you extra

incentive to go ahead and get your taxes

in line now is probably a perfect time

they filed your taxes so you can get in

line and it can be at the top of the

stack or the bottom of the stack however

that working from top to bottom and

it'll take them a long time to get to it

took and you know derive some more time

for you to to gain interest or your tax

return so this is pretty much a pretty

good deal for people that have been

waiting for several months to receive

their tax return and having so many

questions about why is it taking so long

for one and two if we were late to pay

our tax return to pay taxes to the

government we would get charged too late

penalty and interest so now the

government is taking it on their

shoulders to take some of their own

medicine and they are gonna start giving

interest now there will be a staredown

or I should say a step-down with some of

the interest payments that are made on a

quarterly basis so I'm gonna break that

down for you so the interest that is

paid for the second quarter if you're

receiving your tax return in then and

that's the second quarter ended June

30th it's gonna be crediting your

account I should say you're gonna be

gaining interest of 5% and that's gonna

be compounded daily there's also gonna

be a step down further from the 5% for

the third quarter so the third quarter

ended on September 30th so everyone

that's receiving their tax refund and it

falls into the third quarter because of

the processing takes so long you're

going to be receiving 3% return that's

gonna be compounded daily as well on

whatever your tax refund is this is very

good news at least for those of you that

are still waiting on your tax return our

tax refund I should say for your taxes

that you felt for 2019 and that's been

pending for a long time hopefully you've

been able to sustain while still waiting

for your refund and for those of you

that have not failed yet I say go ahead

and do it right now at least get it done

before the the 15th deadline if you file

for an extension past

that you would not be eligible to take

advantage of this interest that they're

gonna pay you on top of your refund if

you have any questions about anything

that I mentioned please leave a comment

below I try to get to all of my

questions and comments as soon as

possible

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a great day

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