Question

A calendar year taxpayer files his 2010 Federal income tax return on March 3, 2011. The return reflects an overpayment of $6,000, and the taxpayer requests a refund of this amount. The refund is paid on May 18, 2011. The refund must include interest.

t
f

Answer 1

A tax refund should include interest if it is issued after the standard tax filing deadline, which is typically April 15th. In the given case, because the refund was paid after the deadline, it must include interest from April 15th until the refund date.

Step-by-step explanation:

The question pertains to whether a tax refund must include interest if it is paid after a certain date. In the United States, federal income tax returns are due every year by April 15th. When a taxpayer files a return and it is determined that they have overpaid their taxes, the government is required to refund the overpayment. If the refund is not issued within a certain time frame after the filing deadline (usually by April 15th or the next business day), the government must also pay interest on the amount of the overpayment.

In the scenario provided, a taxpayer filed a tax return on March 3, 2011, claiming a refund of $6,000, which was then paid out on May 18, 2011. According to IRS guidelines, because the refund was issued after the standard tax filing deadline, it should include an interest payment from April 15th until the day the refund was actually paid.