Interest owed on 2018 tax refund over-payment
I received a federal tax refund for my 2018 tax filing ($3,400), but later discovered an error ($747) that resulted in a reduction of the refund (corrected to $2,653). The amended return and re-payment of the $747 was made in May of 2021.
I just received (4/7/2022) a notice that I owe the IRS $71.86 interest --- presumably on the $747. Would appreciate clarification on the interest being charged and how it is being calculated. I discovered educational account tax forms after the fact which revealed the addition income and wanted to make the correction as soon as possible. I gather that the interest owed is the "reward" for doing the right thing. 🙂