Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
kyounkman
New Member

How do the interest payments for delayed refunds work? What’s the interest rate and how specifically is the interest payment calculated?

I filed and had my return accepted on February 14, 2021 and have yet to receive my refund. How do they calculate interest payments for the delayed refund? Timing, rates, etc.?
5 Replies
Critter-3
Level 15

How do the interest payments for delayed refunds work? What’s the interest rate and how specifically is the interest payment calculated?

kyounkman
New Member

How do the interest payments for delayed refunds work? What’s the interest rate and how specifically is the interest payment calculated?

I’ve seen this article and others similar to it, but how are they figuring $18 for an interest payment? That’s what I’m trying to figure out. 

If it’s an assumed 3-5% interest rate compounded daily, depending on how much the IRS owes you as a refund, that could be a sizable chunk of money—not a puddly $18. 

tagteam
Level 15

How do the interest payments for delayed refunds work? What’s the interest rate and how specifically is the interest payment calculated?

kyounkman
New Member

How do the interest payments for delayed refunds work? What’s the interest rate and how specifically is the interest payment calculated?

Thanks @tagteam  I appreciate this.

 

So if I’m interpreting the information correctly, “whichever the later” is the filing deadline of May 17, then the time elapsed from then to which they release my refund should have 3% interest daily compounded and give as a payment, correct?

 

Not from the date that I had filed in a format that they could process, right?

tagteam
Level 15

How do the interest payments for delayed refunds work? What’s the interest rate and how specifically is the interest payment calculated?

It is the later of all four possibilities listed which could clearly be the date the return was received in a proper format.

Dynamic AdsDynamic Ads
Privacy Settings
v