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May 23, 2022

IRS Paying Interest to People with Delayed Tax Refunds

By T. Thompson In Finance, Latest News with Comments Off on IRS Paying Interest to People with Delayed Tax Refunds

The Internal Revenue Service has announced that it will start paying 5 percent in guaranteed interest to individuals with delayed tax returns in July.

The agency will also pay 4 percent interest on delayed corporate tax returns, 5 percent on underpayments on tax returns, and 7 percent for “large corporate underpayments.”

Law allots the IRS 45 days to process a tax refund.

“The IRS is sitting on 13 million unprocessed tax returns and over 26 million tax returns that are waiting needing further IRS action,” Rep. Tom Rice (R-S.C.) said during a House subcommittee hearing last week.

“At the same time, IRS phone service levels are near all-time lows, making it nearly impossible to reach an IRS agent for help with tax or audit matters.”

According to a Government Accountability Office (GAO) report published last month, the IRS has paid out nearly $14 billion in delayed refund interest over the last seven fiscal years.


Source:

IRS to pay 5 percent interest to individuals with delayed tax refunds

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