IRS to Automatically Adjust Affected Returns
The IRS guidance we have been waiting for regarding tax returns with unemployment claims that were filed prior to the American Rescue Plan has arrived.
IRS issued a press release yesterday, Wednesday, March 31, stating that they are taking steps to identify and recalculate returns that are eligible for the $10,200 unemployment income deduction under the third stimulus package, but filed before the provision was passed. You can read the online press release here.
Once the new AGI is calculated, IRS will automatically issue refunds , or apply available funds to money that is owed. This takes the burden off early filers who might have otherwise had to file amended returns.
