The Internal Revenue Service is asking millions of Americans to wait to file tax returns.
The agency says it is working to address questions about particular tax refunds or payments made by states in 2022.
“There are a variety of state programs that distribute these payments in 2022, and the rules surrounding them are complex,” the IRS said.
California reports that it has issued more than $9 billion in middle class tax refund payments. The state says the money benefited more than 31 million California taxpayers.
While the state would not tax the refund, residents were told that the refund could be considered “federal income”.
Similar refunds were given in other states as well, with local governments attempting to help residents tide over inflation and mitigate the effects of the pandemic.
The IRS says it plans to provide guidance to as many states as soon as possible this week.
The IRS said, “For taxpayers uncertain about the taxability of their state payments, the IRS recommends that they wait until additional guidance is available or consult with a reputable tax professional.”
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