You might get an interest check for your late tax return—here’s who qualifies and what to do with the money

While the second round of stimulus checks[1] are still in limbo, a small category of taxpayers can anticipate getting some additional cash sometime soon, this time from the IRS.

According to a press release,[2] nearly 14 million Americans will receive an interest payment check for their delayed tax refunds.

A long-standing law requires the IRS to pay interest to those who received their tax refunds late — notably 45 days after the typical filing date of April 15. Just as taxpayers must pay interest on any outstanding obligations they owe to the IRS, the rule works both ways if the IRS is late on the money they owe back.

With the onset of the coronavirus pandemic[3] pushing back the filing deadline to July 15 this year, the IRS is paying interest calculated from the original April 15 filing deadline. The interest refund checks aren’t necessarily a big windfall of money in your pocket, but you can still make the most of the extra cash.

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