How many days does the IRS generally have to issue a tax refund without paying interest on the overpayment?

The correct answer is that the IRS generally has 45 days to issue a tax refund without paying interest on the overpayment. This timeframe is significant because it establishes a grace period during which the IRS can process refunds. Under U.S. tax law, if the IRS fails to issue a refund within this 45-day window, they are then required to pay interest on the overpaid amount.

This provision helps encourage timely processing of refunds by the IRS, while also ensuring that taxpayers are not left waiting indefinitely for their money. Understanding this timeframe can be beneficial for taxpayers, particularly in organizing their finances and anticipating when they might receive their refunds. The specified 45-day duration is consistent with IRS policies concerning delayed refunds and interest calculations.