8% Annual Return with No Risk
Yesterday, PFBlog explained a nifty trick for making a risk-free investment with the US government and receiving a return of 8% from the Internal Revenue Service. How’s it work, you ask? In a nutshell:
- You make a large estimated tax payment for 2007 in March 2008.
- When you file your 2007 return in April, you request your big tax refund.
- Don’t cash your check from the IRS, ever. Destroy it.
- Wait as long as you’d like and then file a for 3911 with the IRS to request a replacement check.
- Your new check will include your accrued interest of 8%.
Will this work? Does anyone really want the IRS holding onto their money any longer than they have to?
Photo by Stillframe.
Tommy on November 30th, 2007 2:17 pm
Sounds a little risky to me. I’d like to have more evidence than just one anecdote that this works before I dump any significant dough into trying this.
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