Couple Sues US for Unpaid Tax Overpayment Interest From Covid-19

The IRS failed to implement mandatory disaster relief measures during Covid-19, shorting millions of taxpayers on interest owed for tax overpayments, a New York couple told a federal court.

Martin Fleisher and Andrea Bierstein assert that disaster-related postponements of tax filing deadlines don’t exempt the government from paying interest on overpayments, according to their class action complaint filed Monday with the US District Court for the Southern District of New York. The couple said an amendment to a law should have suspended conditions under which the IRS isn’t obligated to pay overpayment interest to most taxpayers, known as “interest-limiting exemptions.” ...