If your clients contact you about a mysterious bank deposit from the IRS, you can assure them it’s not a mistake. The IRS reported that 13.9 million taxpayers who filed their 2019 income taxes on time and received a refund will now be receiving a second payment from the IRS: an interest payment.

This interest payment isn’t routine — it’s because of the disaster-related postponement of the income tax deadline to July 15th. The IRS is required by law to pay interest when there is a disaster-related postponement. You likely haven’t seen this before and let’s hope we won’t see it again any time soon.

The interest checks won’t be large — the average check amount is $18. And yes, you should let your clients know that if they receive more than $10 in interest payments to expect to receive form 1099-INT in the mail in January 2021. They definitely won’t want to leave this interest payment off their 2020 federal income tax return.

Full details can be found in this IRS new release.