Has anyone considered that the interest rates might change? The IRS adjusts these quarterly. If the Federal short-term rate drops, so will the overpayment interest rate. So even if this crazy scheme worked (which others have pointed out it doesn't), you'd have no guarantee of keeping that 7% rate for long.

As someone who works in financial compliance, I wanted to add that the IRS also has sophisticated data analytics that can easily identify patterns inconsistent with normal taxpayer behavior. They cross-reference your payment patterns with income reported on W-2s, 1099s, and previous returns. If you suddenly start making massive estimated payments that don't align with your reported income or business activity, it will trigger automated flags in their system. They can then demand documentation justifying these payments, and if you can't provide legitimate business or income reasons, they'll process an immediate refund - often within days rather than the normal processing time. The system is specifically designed to prevent exactly what you're thinking of doing. Your best bet for earning decent returns is still traditional investment vehicles like I-Bonds, CDs, or high-yield savings accounts that are actually meant for storing money.

Anyone know when PATH actually lifts tho??

Thanks for sharing this! I had no idea that checking too frequently could actually hurt rather than help. I've been checking daily since I filed last week - guess I better dial it back. Does anyone know if there's a recommended frequency for checking, like once a week or something?

Has anyone used TurboTax to handle their ESPP reporting? I'm trying to figure out if it correctly calculates the adjusted basis for matched shares automatically or if I need to override what's on my 1099-B.

I've dealt with this exact situation and want to add a few practical tips that might help. First, make sure you're keeping detailed records of all your ESPP transactions, including the grant dates for matched shares - you'll need these for accurate basis calculations. One thing that tripped me up initially was understanding that the "compensation income" from matched shares should theoretically appear somewhere in your tax documents, even if it's not explicitly on your W-2. Sometimes it shows up in box 12 or as a separate statement from your employer. If you can't find it documented anywhere, you might want to reach out to your HR or payroll department to clarify how they're reporting this income. Also, regarding the wash sale rules that Justin mentioned - this is really important if you're actively managing your ESPP holdings. I learned the hard way that even selling matched shares at a loss while continuing regular ESPP contributions can trigger wash sale treatment, which defers your loss deduction. For tax software, I've found that most programs (including TurboTax) struggle with ESPP complexities, especially when there are matched shares involved. You'll likely need to manually adjust the basis calculations regardless of which software you use.

Just to put your mind completely at ease - I work in tax preparation and see this question a lot during tax season. You're 100% correct that no funding = no tax forms. Robinhood (and all other brokerages) are required by law to report taxable events to the IRS, but creating an empty account isn't a taxable event. The IRS doesn't care about accounts you open - they only care about money you actually make or lose. Since you never connected a bank account, there's literally no way for any taxable activity to have occurred. You could have 50 different brokerage accounts sitting empty and none of them would generate tax paperwork. Don't stress about it - focus your tax prep energy on the income sources that actually matter!

Emma, you can definitely breathe easy about this! As everyone has confirmed, just creating a Robinhood account without funding or trading creates zero tax obligations. I went through the exact same worry last year when I set up accounts on multiple platforms but didn't use them right away. One thing I'd add is that if you do decide to start investing later, keep good records from day one. Even small trades can create tax reporting requirements, and it's much easier to track everything as you go rather than scrambling to piece it together at tax time. But for now, you're completely in the clear - no forms, no reporting, no stress needed! It's actually smart that you're thinking about tax implications before jumping in. Shows you'll be prepared when you do decide to start investing.

Called IRS yesterday about this exact thing. They said its random selection for identity verification. Dont panic, just wait for the letter and follow instructions exactly

Just went through this same verification process! Got the notification in my IRS account on a Tuesday, received the verification letter that Friday (so about 3 business days). The letter had form 5071C asking me to verify my identity either online at idverify.irs.gov or by calling the number provided. I did it online and it took maybe 10 minutes - just had to answer some basic questions about my tax history and personal info. After that, my refund was processed in exactly 6 weeks. Definitely turn on those email notifications in your account - helped me stay updated without constantly checking. The whole thing was way less scary than I initially thought!