IRS Tells Millions of Taxpayers to Wait to File Returns

The IRS is advising millions of taxpayers to hold off on filing their tax returns until the agency can issue guidance on whether state rebate checks issued in 2022 will count as taxable income. Last year, 19 states approved stimulus or rebate payments, and the IRS still hasn't figured out what tax treatment will apply to those funds. "The IRS is aware of questions involving special tax refunds or payments made by states in 2022; we are working with state tax officials as quickly as possible to provide additional information and clarity for taxpayers,” the IRS said in a statement.