The Cutting Paperwork for Taxpayers Act would exclude interest payments on tax overpayments from taxable income for individuals and small businesses. Currently, when taxpayers overpay their taxes, the IRS pays them interest on that overpayment, but this interest is treated as regular income and subject to federal taxation. The bill would eliminate this requirement, meaning taxpayers wouldn't have to report or pay taxes on the interest they receive from the government when they've overpaid. The legislation applies to all individual taxpayers and small businesses, and would take effect for tax years beginning after the bill is enacted. This change would reduce paperwork and tax liability for people who receive overpayment interest, though it would result in slightly less tax revenue for the federal government.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.