IRS to refund 1.6 million people who missed tax filing deadlines during the pandemic

The Internal Revenue Service is sending refunds to more than a million Americans who filed their taxes late in the early days of the COVID-19 pandemic. Taxpayers have until September 30 to take advantage of this reprieve, the agency said on Monday.

Typically, people who file their tax returns late without requesting an extension can expect to pay penalties of up to 25% of the amount of taxes they owe. For 2019 and 2020, however, the agency is suspending penalties for late filers. Taxpayers who've already paid a fine will automatically be given refunds, the IRS said.

More than 1.6 million taxpayers are set to receive refunds or credits totaling $1.2 billion — an average of $750 per person, although some may get more and some less.