IRS error miscalculated interest for 150,000 personal loan borrowers
A recent system error by the Internal Revenue Service (irs) led to incorrect interest charges for over 150,000 personal loan borrowers. The mistake, now fixed, resulted in some being overcharged while others paid too little. The total amount involved reached around $15 million—less than 0.1% of all personal loan balances in New Zealand.
The issue stemmed from a 2020 change in the IRS's system, though no specific person or group has been named as responsible. The error caused interest to be miscalculated, leaving some borrowers with unexpected balances.
The correction ensures no borrower faces an unexpected bill due to the error. While the total financial impact was significant, the average adjustment per person remained small. The IRS has confirmed the issue is now fully resolved.
