Ms Hepp Filed Her 2019 Form 1040 on February 19

question 19

Multiple Choice

Ms. Hepp filed her 2019 Form 1040 on February 19, 2020. The return showed a $2,730 overpayment of tax, and Ms. Hepp received her refund check from the IRS on April 30, 2020. Which of the following statements is true?

• A) The government will not pay Ms. Hepp any interest on her refund.
• B) The government must pay Ms. Hepp interest on her refund for the period from February 20 until April 30.
• C) The government must pay Mrs. Hepp interest on her refund for the period from April 18 until April 30.
• D) The government must pay Mrs. Hepp interest on her refund for the period from January 1 through April 30.

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Definitions:

Down Payment

An initial upfront payment made when purchasing something expensive, with the balance to be paid over time.

Interest Rate

The percentage of a sum of money charged for its use, indicating the cost of borrowing money or the return on invested funds.

Deposits

Funds placed into an account at a banking institution for safekeeping, which can earn interest over time depending on the type of account.

Investment

Allocating financial resources with the goal of achieving returns or profits.