Refund Interest Transcript (CP 388)

These transcripts must be reviewed to decide if a manual refund will be issued to meet the interest free period. (See IRM 3.14.2.7.2.2.3, Computing Credit Interest on Manual Refunds.)

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The select key for Refund Interest Transcripts is 022.

Credit interest is allowed on overpayments if a refund is not issued on or before 45 days (180 days on any overpayment resulting from tax deducted and withheld under Chapter 3 or Chapter 4) from the later of the dates listed in the table below:

Credit Interest Allowed:

The Return Due Date (determined without regard to any extension of time for filing the return)

The Return Received Date (used when the return is filed after the return due date, determined without regard to any extension of time for filing the return)

The Return Processable Date (date required information is received if the return is received in an unprocessable form)

Verify if it is possible to meet the interest free period, using the following steps in the table below:

Decision Table for 45-Day and 180-Day Interest Free Period:

Count two work days past the current date on the calendar

Subtract 45 days (180 days for Chapter 3 or Chapter 4 withholding) from the Julian date

No interest is allowed on refunds if the refund is issued within 45/180 days of the dates outlined in the table above.

For returns received or due on the day and later, it is still possible to prepare an interest free manual refund

Input CC NOREF to delete the TC 846 on the module and complete the Manual Refund procedures in IRM 3.14.2.7.2.2.2, Initiating Manual Refunds.

Prepare Form 5792 for the manual refund.