Does the IRS really pay 8% interest on over-payments? If so, why?
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I could be wrong, but I believe the only time they'll pay interest is in the case of a mistake that they made. For example, I was supposed to get a refund that was not paid out due to a clerical mistake on their side. When I finally got it (~3 years later) it was paid out with interest. (Don't think it was 8% tho!)
@bsierakowski @moseskagan I’ve received interest when overpaying with an extension. The interest is earned from April 15th until they receive the return.