How do I request a correction on the amount of interest the IRS paid me for a delayed tax return?

Forum|Forum|1 year ago
June 26, 2024
3 replies
1 view

I filed my return on 02/10 and it was accepted the same day. It's currently 06/25 and still no return. The IRS website says they pay 8% compounded daily and TurboTax backs that up, adding that the compounding begins if your return hasn't been issued within 45 days of being filed. I finally found my tax refund transcript on the IRS website and see that they plan to issue my refund next week, as well as an interest payment for the delay. But the payment is dramatically less than any calculation I can come up with for 8%, much less 8% compounded daily. How do I get that corrected?

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taxlady28

Level 10

What formula are you using to compute the interest?

DoninGA

Level 15

No, interest on an unpaid federal tax refund does not accrue 45 days after the return is filed. The interest accrues 45 days after the tax deadline, which was April 15, 2024.

NCperson

Level 15

if you filed on 2/10 and 45 days later is the end of March and the check is being sent out now, let's call that 3 months. that is 2% for 3 months. (8% divided by a quarter of the year). So the interest should be in and around 2% of the refund.