Bill > HR4826

This bill aims to modify the Internal Revenue Code by excluding interest received on tax overpayments from an individual's or small business's gross income. Specifically, the bill creates a new section (Section 139J) that would allow individuals and eligible small businesses to receive interest on tax overpayments without having to report that interest as taxable income. This means that when taxpayers overpay their taxes and the government pays them interest as compensation for the overpayment, that interest will not be considered part of their taxable income. The changes would apply to taxable years beginning after the date of the bill's enactment. The bill, titled the "Cutting Paperwork for Taxpayers Act", is designed to provide a small financial benefit to taxpayers by ensuring that interest received from tax overpayments is not subject to additional taxation, potentially making the tax system slightly more favorable for individuals and small businesses.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/4826/all-info