Tax Bill & IRS FAQ

Can the IRS charge me interest if I was incorrectly sent a refund and the IRS now wants it back?

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Questions:

Answer:

Can the IRS charge me interest if I was incorrectly sent a refund and the IRS now wants it back?

It depends. The Internal Revenue Manual states that "taxpayers should not be held liable for interest on ... erroneous refunds if the IRS was clearly at fault ... and the taxpayer is cooperative in repaying." If you caused the refund and can't afford to repay it, however, the IRS can charge interest from the time it requested the repayment.

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