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Report: 15.4M tax refunds may shrink

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Published: Nov. 16, 2009 at 6:35 PM
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WASHINGTON, Nov. 16 (UPI) -- About 15.4 million U.S. taxpayers could end up owing federal taxes above and beyond payroll deductions this year, a Treasury Department inspector general said.

The Internal Revenue Service said the figure in a report by the Treasury's Inspector General for Tax Administration was over-inflated, the Los Angeles Times reported Monday.

The IRS said 75 percent of taxpayers receive refunds, with the average refund at $2,700. The Treasury watchdog said that would change due to the amount withheld from taxes after the stimulus bill passed in January.

That bill provided as much as $400 for individuals and $800 for joint filers per year, with tax credits delivered through smaller payroll deductions.

The IRS said in a letter to the inspector general most would see "a reduced refund and not an out-of-pocket liability."

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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