For those folks whose amended returns show thousands of dollars (or any dollars) owed them by the government, and who are approaching a year or more of delay, what is the interest rate the IRS is paying right now?
I googled and could not pull this up, at least not easily.
The interest rate has been 3% for quite some time. It will be increasing to 4% in Q2 2022.
Ira Smilovitz, EA Leonia, NJ
Ira, thank you. A senior citizen friend of mine amended her return in May. She's been quite worried about when she would see the several thousand dollar refund. Per your report, I let her know about the high (relative to what one gets at a bank right now) interest rate. Hopefully it cheers her some.
The increase from 3% to 4% is effective April 1. Note that this does NOT mean that if your friend gets her refund in April she will get 4% interest on it. The interest is calculated quarter by quarter, using the rate that was in effect for each quarter. So if she gets her refund in April she will get 3% for most of the time period, and 4% for only a short time at the end.
Bob Sandler
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