IRS tells millions of Americans in more than 20 states to hold off on filing their taxes
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The IRS is asking millions of taxpayers more than 20 states including California, Colorado and Florida who received tax rebates last year to hold off on filing their taxes. The reason: The agency said it is seeking to clarify whether those tax rebates and special refunds are considered taxable income. "We expect to provide additional clarity for as many states and taxpayers as possible next week," the IRS said on February 3. On Friday, the IRS provided guidance to those taxpayers: For the most part, those rebates aren't taxable. "During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief," the tax agency said in its February 10 update . About 16 million California residents received " middle-class tax refund " checks of $350 per eligible taxpayer last year, part of a relief package designed by the state to help residents...