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IRS Pays ME Interest?!
Yes, under certain conditions.
FOR TAXPAYERS: The IRS must pay interest if the taxpayer’s tax refund is paid more than 45 days after the tax return due date. Because of the COVID-19 shutdown, some individual taxpayer refunds have interest added. Extra money from the IRS . . .Yay!
Careful: CATCH22!! IRS interest received is taxable. If the interest is $10.00 or more, the IRS will issue taxpayers a 1099INT to document the interest paid.
So if you received IRS interest on your 2019 refund, stay out of “trouble”. Report the IRS interest received on 2020’s tax return (the year IRS interest was received).