INDIANA – The Internal Revenue Service is recommending that taxpayers hold off on filing their tax returns for 2022 if they received a special tax refund or payment from their state last year.
Last year, 19 states – including Indiana – offered diverse programs that offered inflation relief payments or refunds for taxpayers.
The IRS issued the guidance Friday due to the agency’s uncertainty about the taxability of the payments.
For residents from states such as Indiana and Illinois, the agency is recommending that they hold off on filing their tax returns until they receive further instruction from the IRS.
