IRS Refund Check

If the refund is for a tax deductible payment previously made you DO have to pay tax on the refund. You can post it against the tax liability you paid and then adjust the liability, which increases net income, thus increasing income tax.

If this is personal tax refund, it was neither deductible previously nor taxable today, but depositing it to the business account is owner equity contribution.

If your situation is different than one of the above please explain in moire detail

The refund, if against a previously deductibe tax payment, is in fact fully taxable. You adjust the previous liability and apply the refund to the changes. Net income goes UP, taxable income goes UP. No way around it. It is taxed.

If this was, instead, personal tax refund deposited to business account then it is deposited as owner equity contribution (a non-event as far as business net income)