The IRS pays interest on refunds delayed beyond 45 days

Yes, the IRS owes you interest if your refund takes longer than 45 days from the date you filed your return. The interest rate changes quarterly and is set by federal law — for 2024, it is 8 percent per year. The IRS calculates interest from the original due date of your return (usually April 15) until the date they issue your refund, not from the date you filed.

You do not have to request this interest or fill out a separate form. If you are owed it, the IRS includes it automatically when they send your refund. The amount is usually small — a few dollars for most people — because most refunds arrive within three weeks.

The delay must be the IRS's fault, not yours. If you filed late, the clock still starts from April 15 of that year, not from when you actually submitted your return. If the IRS delayed processing because of an error on your return, you still receive interest from day 45 onward.

Key Takeaways

  • The IRS owes interest on refunds that take more than 45 days to process, calculated from your return's due date (usually April 15), not from when you filed.
  • The interest rate is set by federal law and changes quarterly — check the IRS website for the current rate, which applies to your specific refund period.
  • The IRS adds interest automatically to your refund check or direct deposit; you do not need to claim it separately.
  • Interest is owed even if the delay was caused by an error on your return, as long as the IRS took more than 45 days to process it.
  • Most refunds arrive within three weeks, so interest is rare unless your return required additional review or verification.

How the 45-day clock works

The IRS starts counting from the due date of your return, not the date you filed it. For most people, that is April 15. If you filed your 2023 return on March 1, 2024, the clock still starts on April 15, 2024. If you filed on May 20, 2024, the clock still starts on April 15, 2024 — you do not get a later start date for filing late.

The 45 days end on day 45 after that due date. If your return was due April 15 and you file on time, day 45 is May 30. If the IRS has not issued your refund by May 30, interest begins accruing on May 31.

The IRS counts calendar days, not business days. Weekends and holidays are included in the 45-day window.

Current interest rates and how they change

The IRS interest rate is tied to the federal short-term rate plus 3 percentage points. This rate changes every three months — on January 1, April 1, July 1, and October 1. The rate that applies to your refund depends on which quarter the 45-day period falls into.

You can find the current and past interest rates on the IRS website under "Interest Rates." The rates are usually between 7 and 9 percent, though they can move outside that range. The IRS publishes the rates in advance, so you can calculate your interest before your refund arrives if you know when the 45-day mark falls.

Interest is calculated daily and compounds. The longer the delay, the more interest accrues, though the amounts remain modest for most people because the principal (your refund) is usually paid within a few weeks.

Why refunds get delayed past 45 days

The most common reason is that the IRS needs to verify information on your return. This might happen if your income does not match what employers or financial institutions reported, if you claimed a large credit like the Earned Income Tax Credit, or if the IRS is checking for identity theft or fraud.

Errors on your return also trigger delays. A missing Social Security number, a name that does not match IRS records, or math mistakes all require the IRS to contact you or correct the return before processing. These delays are still the IRS's responsibility, so you still earn interest after day 45.

Paper returns take longer than electronic ones. If you mailed a paper return, it may take weeks just to be scanned and entered into the IRS system. Once processing begins, the 45-day clock is already running.

During tax season peaks (February through April), the IRS processes millions of returns. High volume alone does not excuse a delay past 45 days, but it is a reason delays happen more often in spring than in fall.

How to check if your refund qualifies for interest

Track your refund status using the IRS "Where's My Refund?" tool on IRS.gov. This tool shows you the date the IRS issued your refund. If that date is more than 45 days after April 15 (or your return's due date), you are owed interest.

Write down the date your return was due and count forward 45 days. If your refund was issued after that date, calculate the number of days between day 46 and the issue date. Multiply that number by the interest rate for the quarter that period falls into, then divide by 365. That gives you a rough estimate of what you should receive.

The IRS's calculation is more precise because it accounts for the exact quarter each day falls into (since rates change quarterly), but this method shows you whether the amount is in the ballpark. Most people receive between $5 and $50 in interest.

What happens if the interest is not included in your refund

If your refund arrives more than 45 days late and the interest is not included, contact the IRS. You can call the IRS at 1-800-829-1040 or visit a local IRS office. Have your return and the date your refund was issued ready.

The IRS sometimes omits interest by mistake, especially on older returns or returns that were heavily modified during processing. A phone call or written request usually results in a corrected check or adjustment to your account within a few weeks.

If you prefer to handle it in writing, send a letter to the IRS service center that processed your return. Include a copy of your return, the date your refund was issued, and a calculation of the interest you believe you are owed. The IRS will review and respond, usually within 30 to 60 days.

Interest on amended returns and rejected returns

If you filed an amended return (Form 1040-X), the 45-day clock starts over from the due date of the amended return, not the original return. Amended returns are processed separately and often take longer than original returns, so delays past 45 days are more common.

If the IRS rejected your return because of a missing or incorrect Social Security number, the clock restarts when you resubmit the corrected return. You do not earn interest on the time between rejection and resubmission — only on delays after the corrected return is due.

If you filed electronically and the return was rejected, resubmit as soon as possible. The sooner you resubmit, the sooner the new 45-day window begins.

Frequently Asked Questions

Do I have to pay taxes on the interest the IRS gives me?

No. Interest paid by the IRS on a tax refund is not taxable income. You do not report it on your next return, and the IRS does not send you a 1099 form for it. It is treated as a correction to your original refund, not as new income.

What if I filed my return late — does the clock still start on April 15?

Yes. The 45-day period always starts on the original due date of your return (April 15 for most people), even if you filed months later. Filing late does not delay when interest begins to accrue, but it also does not speed it up.

Can I get interest if my refund was delayed because I made a mistake on my return?

Yes. As long as the IRS took more than 45 days to process and issue your refund, you are owed interest from day 46 onward, regardless of why the delay happened. Errors on your return do not disqualify you from interest.

How do I know which interest rate applies to my refund?

The rate depends on which quarter your 45-day period falls into. If day 46 of your period is in January, April, July, or October, check the IRS website for the rate that took effect that month. Most refunds span two quarters, so you may have two different rates applied to different portions of the interest.

What if the IRS issued my refund on time but I did not receive it?

If the IRS issued your refund but you never received it (by check or direct deposit), that is a separate issue from the 45-day interest rule. Contact the IRS or your bank to trace the missing refund. The interest clock stops when the IRS issues the refund, not when you receive it.