You may be owed interest on your tax refund, IRS says
DALLAS - If you haven't received your tax refund from the IRS, the wait may be worth it.
The federal agency is paying interest on the cashback.
The information comes courtesy of a question from viewer Linda Jones. She said she heard something about the IRS paying interest on refunds. Turns out what she heard is true.
You may be surprised to find that your refund check is a little bigger than anticipated. Here's why.
While the IRS extended the deadline for tax filing, you're still due your refund by April 15.
That means whether you waited to submit your return or the IRS was delayed in processing your return, the agency held on to money that belonged to you and now you are due interest.
Just like when you owe money and interest is added, the same works in reverse.
Refunds owed and not paid back taxpayers by April 15 will have interest tacked on.
It may come as part of your refund or it may come as a second check. Either way, it’s money you are owed.
Interest is accrued at roughly 5 percent from April 15 to June 30 and 3 percent thereafter.
Remember, the tax filing extension ends July 15.