Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Author: mawhinney Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19372  
Subject: Tax refund Date: 3/6/2002 6:36 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
If one overpaid the amount of tax due in 2001 and will receive a refund, is interest paid on the amount of overpayment? If so, what is the rate of interest?
Print the post Back To Top
Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7824 of 19372
Subject: Re: Tax refund Date: 3/6/2002 8:36 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
If one overpaid the amount of tax due in 2001 and will receive a refund, is interest paid on the amount of overpayment?

Not unless the refund is paid more than 60 (or 45--I can't remember which) days after the later of 4/15/2002 or the date the return is filed. The interest rate bounces around. I think it's 6% right now.

Phil Marti

Print the post Back To Top
Author: wskwlh68 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7825 of 19372
Subject: Re: Tax refund Date: 3/7/2002 10:40 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
There is no interest paid on refunds. The state and federal goverments use the money freely and will pay it back as a refund interest free.

Have a good day

Walter

Print the post Back To Top
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7826 of 19372
Subject: Re: Tax refund Date: 3/7/2002 10:56 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Walter, obviously having not read Phil's reply to this post, wrote:

There is no interest paid on refunds.

That's true in the ordinary course of events when a refund is made promptly. There are times, however, when the feds are late processing the refund. Federal law generally provides for interest on your refund if it is not paid within 45 days of the date you filed your return or claimed the refund. As Phil pointed out, the interest rate used varies.

For verification, just read IRS Publication 1, "Your Rights as a Taxpayer," available for download at http://www.irs.gov/forms_pubs/pubs.html

Regards..Pixy

Print the post Back To Top
Author: wskwlh68 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7827 of 19372
Subject: Re: Tax refund Date: 3/7/2002 11:59 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Sorry for the incomplete answer. I was thinking in terms of the normal refund and had forgotten about the time limit on mailing out the refunds. Yes, any refunds mailed after the time deadline will have interest. Thanks Phil for correcting me.
Have a nice day
Walter

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev Thread | Next Thread
Advertisement