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20.2.4.1
(03-01-2002)
Overpayment Interest Overview
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Per IRC section 6611(a), interest is allowed and paid on any overpayment of tax at the overpayment rate established under
IRC section 6621.
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The allowance of interest is authorized only on overpayments. There is no overpayment until the entire tax liability is satisfied.
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The Restructuring and Reform Act of 1998 (RRA '98) eliminated the interest rate differential for non-corporate taxpayers.
See IRC 6621(d).
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Credit interest is allowed if the overpayment is:
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offset against a liability.—IRC section 6611(b)(1).
See Section 4.6.1., or
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refunded to the taxpayer.—IRC section 6611(b)(2).
See Section 4.9..
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