Cutting Paperwork for Taxpayers Act

This bill would make the interest you get from the IRS on a tax refund (when you overpaid) tax‑free if you’re an individual or a small business. Today, that interest is counted as income. Under this change, it would no longer be included in your taxable income, so you wouldn’t have to report it or pay tax on it.

Key points:

• Who is affected: Individuals and small businesses that receive interest on tax overpayments.
• What changes: That interest would not count as income for tax purposes, reducing what you need to report on your return.