Does the IRS pay interest on refunds?Articles
Normally, the IRS is required to pay interest on a refund if the refund is issued after a statutory period. By law, the interest rate on both overpayment and underpayment of tax is adjusted quarterly.
The IRS announced this week that interest rates will increase for the calendar quarter beginning April 1, 2022. The rates will be:
• 4% for overpayments (3% in the case of a corporation);
• 1.5% for the portion of a corporate overpayment exceeding $10,000;
• 4% for underpayments; and
• 6% for large corporate underpayments.