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Froogal82
New Member

CP24 Notice Interest owed to Taxpayer

I received a CP24 Notice for TY2021 for "Interest owed to taxpayer of -$46.68.  (We do not make estimated tax  payments during the year.)  I filed for an extension for TY2021 and per Turbo Tax, my estimated tax liability was $6787 and my total 2021 payments were $6431.   So, I sent in a check for $356 with my extension Form 4868. 

When I eventually filed my TY2021 taxes, my 1040 Line 24 total tax was zero, 25d was $6431, line #31 and line #32 were $356 (from Schedule 3), for a total payment of $6787 line 34.  Per the CP24 description of our payments and credits, taxes owed was the $6431, the $356 is not listed as a tax payment from Schedule 3 line 10.  Our refund was the $6431 plus the $46.68 "interest owed to taxpayer", for a total refund of $6477.68.   I don't understand where the $46.68 comes from, or what to correct on my TY2021 return.  Shouldn't our refund have been $6787, the $6431 tax withheld plus the $356 payment sent in with the extension?  Thanks!

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2 Replies
JulieS
Employee Tax Expert

CP24 Notice Interest owed to Taxpayer

No, you don't have to correct your 2021 tax return. 

 

Because the IRS charges interest when you pay late, the IRS is required by law to pay you interest if you receive your refund late even if it is because you filed an extension. 

 

The only thing you have to do is to report the $46.68 as interest income when you file your 2023 tax return. You will receive a 1099-INT statement from the IRS next January. 

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CP24 Notice Interest owed to Taxpayer

Thank you!  I'm still not sure why the $356 check I sent in with my extension to file isn't reflected on the CP24 payments and credits section, or our resulting refund.  I filled out a Schedule 3, and the $356 is on lines 10 & 15, and on our 1040 lines 31 & 32.   The correct amount of tax withheld per our W2 is on 1040 line 25d.  I'll keep digging, but appreciate your help with why we received the interest from the IRS in the first place.  Never been in that situation before!  🙄   Thanks again.

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