The IRS will pay interest to about 14 million Americans for the refunds they got after April 15, the agency wrote on its website Tuesday.
According to the agency, 13.9 million U.S. taxpayers who filed their 2019 taxes by July 15 will receive interest payments on their refunds.
The average interest payout will be about $18, the IRS said. All interest payments higher than $10 will be taxable income for the 2020 filing year.
According to the IRS, about 12 million taxpayers will get interest payments via direct deposit into the same bank accounts their 2019 refunds went to.
The other taxpayers will receive checks to payout interest refunds.
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{Matzav.com}
This rule that the interest is taxable only applies to tax returns filed after April 15th. Otherwise, the standard rule that the IRS pays interest on any refund that is delayed by more than 45 days appplies.