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If your tax refund is still in limbo, there’s good news: Your balance may be accruing interest, and the rate increases to 7% from 6% on Jan. 1, according to the IRS.
As of Nov. 18, there were 3.4 million unprocessed individual returns received in 2022, including filings for previous tax years, the agency reported.
Adjusted quarterly and tied to the federal short-term rate, the 7% interest applies to pending refunds and unpaid tax balances.
“It’s a big jump,” said Sheneya Wilson, a certified public accountant and founder of Fola Financial in New York, noting the rate has more than doubled since paying 3% in January 2022.
Typically, the IRS has 45 days after the…