Internal Revenue Service issues refunds related to unemployment compensation

Taxpayers may be eligible for compensation

WASHINGTON, D.C. (KYMA, KECY) - The Internal Revenue Service sent approximately 430,000 refunds to taxpayers who paid taxes on unemployment compensation.

These refunds are totaling more than $510 million.

Compensating overpayments help the over 16 million taxpayers that may be eligible, which some will be given full refunds while others will have their payments applied to other debts.

The IRS began its tax return reviews before the American Rescue Plan Act was taken into effect.

Over $14 billion in refunds were issued by the IRS to date, with another batch of corrections planned to be sent out before the end of 2021.

Eligible taxpayers should receive letters of their compensation within 30 days of adjustment.