Tax Refunds and Owed Taxes Trend

SOURCE www.politico.com
The number of tax refunds is down 3.3 percent, while the number of people owing the government is rising. This trend could be due to changes in how people work and how taxes are withheld from paychecks. The drop in refunds could have consequences for tax compliance and the IRS's ability to collect taxes owed.

Key Points

  • Number of tax refunds down 3.3 percent
  • Potential reasons include changes in work patterns and tax withholding methods
  • Refund amounts holding steady
  • New tax withholding system may be more accurate but confusing for taxpayers

Pros

  • Refund dollar amounts are holding steady
  • The new tax withholding system aims for accuracy

Cons

  • Drop in refunds may impact tax compliance
  • Rising number of people owing taxes could stress the IRS