The Internal Revenue Service this week is sending more than 2.8 million refunds to people who paid taxes on 2020 unemployment compensation that new legislation now excludes as income.

Efforts to correct unemployment compensation overpayments will help most affected taxpayers avoid filing an amended tax return, according to the IRS.

The IRS says it has identified 13 million taxpayers that may be eligible for the adjustment.

Some people will receive refunds, which will be issued periodically, and some will have the overpayment applied to taxes due or other debts, the IRS noted. There will be no change for some people.

The IRS plans to issue the next set of refunds in mid-June.

Taxpayers will receive letters from the IRS, generally within 30 days of the adjustment, informing them of what kind of adjustment was made.

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