California taxpayers wait for IRS guidance on inflation relief, Kiley issues 2nd letter

U.S. Rep. Kevin Kiley is pushing the Internal Revenue Service once again to issue guidance on whether or not Californians need to claim Middle Class Tax Refunds issued in 2022 as income on their tax returns.

Following national media coverage about the IRS guidance telling taxpayers to wait to file until additional guidance is available, the Rocklin Republican issued a follow-up letter to IRS Commissioner Doug O’Donnell.

The Bee reported on Friday the IRS’ statement telling taxpayers to wait for guidance before filing.

“Many taxpayers plan for, and depend on, their anticipated federal tax refunds to meet basic needs,” Kiley wrote in the letter issued on Feb. 7. “Delay is something not everyone can afford.”

The IRS did not immediately respond to The Bee’s request for comment Tuesday.

“For taxpayers and tax preparers with questions, the best course of action is to wait for additional clarification on state payments rather than calling the IRS,” an IRS representative stated last week. “We also do not recommend amending a previously filed 2022 return.”

Kiley issued the first letter last Thursday to the IRS urging guidance on whether the MCTR would be federally taxed, citing The Bee’s report of confusion among Californian taxpayers.

Multiple spokespeople previously told The Bee guidance would be issued in the next “few business days.”

What do you want to know about life in Sacramento? Ask our service journalism team your top-of-mind questions in the module below or email servicejournalists@sacbee.com.