A calendar year taxpayer files his 2016 Federal income tax return on March 4, 2017. The return reflects an overpayment of $6,000, and the taxpayer requests a refund of this amount. The refund is paid on May 16, 2017. The refund need not include interest.

Question

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Interest is not required to be paid on a refund if the taxpayer files within three years of the due date of the return or within two years of the payment of the tax, whichever is later. In this case, the taxpayer filed within the three-year period, so interest is not required.

A Calendar Year Taxpayer Files His 2016 Federal Income Tax