IRS pays 4% interest

User Forum Topic
Submitted by captcha on November 16, 2009 - 4:39pm

Recently I received $8K first-time buyer's kickback (I thank all the taxpayers on this board, much appreciated).

The actual amount on the check was $8,142 since I choose to amend my 2008 tax return and got paid interest on $8K. Based on this http://evans-legal.com/dan/underpay.html the IRS pays 4% interest on overpayments, which is way better than any CD available.

What is the risk of forgetting to claim $15K in 401k deduction in April and filing an adjustment in December? Is the interest I earned taxable?

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Oh, goody! Seriously! This
Submitted by CA renter on November 16, 2009 - 6:50pm.

Oh, goody! Seriously! This is just as good as FDIC backing, no?

Anyone else have any info on whether or not we can "invest" in pre-paid taxes? A win-win for everyone -- we get a higher return, and the govt can have the money up front! ;)

If it sounds to good to be
Submitted by oxfordrick on November 17, 2009 - 7:27am.

If it sounds to good to be true....