Refunded More than Expected

[EA_TAX]

Received a call from a potential future client who e-filed their MFJ 2019 income taxes on 7/8/20, using TurboTax. Their calculation was for a $1635.00 refund and the IRS check back to them was received on 8/21/20 for $1658.03, with no notice from the IRS to explain the difference. They cashed the check. Their concern was did they need to take any other action.
I plan to share with them the IRS Tax Topic 161

https://www.irs.gov/taxtopics/tc161

Any other thoughts?

EA_TAX

[TAXNJ]

Yes. Why share the IRS Tax Topic 161 unless you know that it was an incorrect filing?

Did you look at the information they filed and did you arrive at the same result?

[rbynaker]

I'll bet a shiny new nickel that it's just interest. This might be a better link to send them:

https://www.irs.gov/newsroom/13-poin...age-18-dollars

Rick

[EA_TAX]

Yes, I did review the income tax return and it seemed appropriately filed.
Thank you for the link and the responses.
It should have occurred to me that it could be interest owed the taxpayer, but it didn't, I'm more use to the other way around, and it's a special COVID year.
I'm glad I reached out.
Thank you
EA_TAX

[ATSMAN]

"No interest will be added to any refund issued before the original April 15 deadline."

"By law, to pay interest, calculated from the original April 15 filing deadline, as long as an individual files a 2019 federal income tax return by the postponed deadline − July 15, 2020"

Do you see the irony here? Folks who diligently paid be 4/15 don't get anything but if you waited to pay until 7/15 you get interest from 4/15 while the money was in your pocket.

Only in America!

[New York Enrolled Agent]

Do you see the irony here? Folks who diligently paid be 4/15 don't get anything but if you waited to pay until 7/15 you get interest from 4/15 while the money was in your pocket.

The IRS only does what Congress says. Why don't you write to your Congressperson and ask to have §7508(b) be repealed?

[kathyc2]

Do you see the irony here? Folks who diligently paid be 4/15 don't get anything but if you waited to pay until 7/15 you get interest from 4/15 while the money was in your pocket.

Only in America!

If someone waited to pay until 7/15 how do you calculate they would have a refund to receive interest on????

[ATSMAN]

If someone waited to pay until 7/15 how do you calculate they would have a refund to receive interest on????

I was typing quickly. I meant filed by 7/15. I was just saying that in sarcasm that taxpayers who were diligent and filed by 4/15 were left out but folks who filed on 7/15 got the extra interest. It is sort of ironic.

Not worth calling for §7508(b) be repealed?

[Rapid Robert]

I was typing quickly.

"you get interest from 4/15 while the money was in your pocket." If you were waiting for a refund for a filing after 4/15, what money was in your pocket? In fact, if you filed before 4/15 and got a timely refund, then you did have use of the money to invest if you wished, so why would you be entitled to interest from the government?

As was previously discussed in another thread, the only "unfair" part about this is that the interest payment begins retroactive to 4/15 regardless of when you actually filed. It shouldn't really start until the date of filing. The example in the previous thread was how someone who didn't file until say 7/13 still got interest paid beginning 4/15.