No. Youu2019re mixing two separate issues u2023 escrows and taxes.Funds in escrow are held for the benefit of someone else u2023 not the escrow company or bank which is holding the funds. The case says that banks who are escrow holders owe interest on the funds they hold for others.Funds withheld from your paycheck are simply installment payments of the taxes you are estimated to owe the IRS. In other words, itu2019s the IRSu2023 money u2023 they are not holding it for you u2023 so they donu2019t owe anyone interest on it.Note that the IRS does pay interest on money they refund.