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Slow Tax Processing Cost IRS $3 Billion in Interest Last Year

April 11, 2022, 6:02 PM

The IRS paid nearly $14 billion in interest payments for late refunds due to slow processing of tax returns over the past seven years, a new Government Accountability Office report concluded.

Interest payments during that period spiked in fiscal years 2020 and 2021, with payments on individual refunds peaking at approximately $1.9 billion in 2021, according to the report. Corporate refund interest payments reached nearly $1.5 billion in 2020 but decreased to approximately $1.2 billion in 2021. Interest payments for late refunds were growing before the pandemic, rising steadily from 2017.

The GAO noted the IRS dealt with ...