Repayment interest on overpayment runs from which two starting points?

The correct answer highlights that repayment interest on overpayment begins accruing from either the due date of the return or the actual payment date. This means that if a taxpayer overpays their taxes, they are entitled to interest on that overpayment starting from these two significant points.

The due date of the return is important because it marks the date when the taxes were originally due (regardless of whether the taxpayer filed on time, late, or not at all). The actual payment date is also crucial as it represents the point at which the IRS received the overpayment. Interest on the overpayment will begin to accumulate from whichever of these two dates is most favorable to the taxpayer.

This understanding aligns with how tax rules generally apply, ensuring taxpayers receive appropriate compensation for waiting on the repayment of their funds. It is essential to note that the other options do not accurately capture both valid starting points for the accrual of repayment interest, which reinforces the accuracy of the selected answer.