Washington, DC – Today, U.S. Representatives Young Kim (CA-40) and Eugene Vindman (VA-07) introduced the bipartisan Cutting Paperwork for Taxpayers Act (H.R.4826) to close a loophole in the tax code that penalizes Americans waiting on tax refunds from the Internal Revenue Service (IRS).
Under current law, when the IRS is delayed more than 45 days in issuing a tax refund, interest begins to accrue on the refund. If this interest exceeds $10, taxpayers must report it as income by filing a separate 1099-INT form, creating an unnecessary administrative and financial burden on taxpayers for delays outside of their control.
The Cutting Paperwork for Taxpayers Act would correct this flaw in the tax code and designate IRS-paid interest on late refunds as non-taxable, sparing individual filers and small businesses from having to report this interest as additional income.
“Taxpayers shouldn’t have to foot the bill for inefficiency at the IRS,” said Rep. Young Kim. “I’m proud to help lead this bipartisan bill to cut red tape at the IRS and save working Americans time and money. I will always fight to ensure our federal government works for taxpayers, not against them.”
“The cost of living is too damn high, and I’m working hard to change that. This common-sense, bipartisan bill would put money back in your pocket. Families who file their taxes on time and are owed a refund should get their money hassle free,” said Rep. Vindman. “I’m proud to team up with Congresswoman Kim on this effort to make life easier.”
Read more about the bill HERE.
