PAYE-skattebetalere oppfordres til å kreve tilbakebetalinger

What happened: The IRS may owe tens of millions of U.S. taxpayers refunds or abatements of penalties and interest, with a deadline of July 10, 2023, for claims. This is due to recent federal court decisions, including Kwong v. United States, which found that the IRS wrongly charged or collected penalties and interest during the pandemic era. The Institute of Chartered Accountants in England and Wales (ICAEW) also urged PAYE taxpayers in the UK to check for refunds from HMRC within four years of the end of the tax year.

Market impact: This narrative primarily affects individual taxpayers, not specific sectors or industries. However, it could indirectly impact financial services companies that provide tax preparation services, as they may see an increase in clients seeking to claim these refunds. Additionally, it might influence consumer spending if a significant number of taxpayers receive refunds, potentially boosting economic activity.

What to watch next: The IRS's progress in processing and paying out these refunds will be crucial. Upcoming catalysts include the IRS's quarterly refund data releases and any updates from the Treasury Department on the timeline for these payments. Additionally, watch for any changes in tax laws or regulations that could affect future penalty and interest calculations.