13.9 million Americans to receive IRS tax refund interest; taxable payments to average $18

[Abby Normal]

And tax pros can expect millions of phone calls about this.

https://www.irs.gov/newsroom/13-point-9-million-americans-to-receive-irs-tax-refund-interest-taxable-payments-to-average-18-dollars

[Catherine]

I can NEVER understand why they don't just pay a lower interest rate and call it tax-exempt interest.  It would save everyone involved (IRS, taxpayers, and us poor overwhelmed preparers) SO much grief!

And I answered my own query here:  it would make SENSE, so they CAN'T do it that way!  lol.

[Sara EA]

I always put myself on extension and try not to get refunds, but sometimes it happens.  I usually file in August and have never gotten interest on an overpayment before.  This year I filed in May, only because I moved to VA which had a nonextended June 1 due date and being a part-year resident, I couldn't even guess what my tax liability would be so had to prepare the return.  I had an IRS overpayment (my bad), and just had interest deposited to my bank.  What???  The regular due date was July 15, so they were not even late in paying me (I actually applied the funds to 2020 so didn't even request a refund).  It's like the IRS has reversed course, anxious to give away money instead of collect it.