Financial Flipside

The first tax season after the passage of the Tax Cuts and Jobs Act was full of surprises. When the IRS published its weekly filing statistics during the last week of tax season , the numbers confirmed what many taxpayers were shocked to see when they finished their returns: namely, that tax refunds were both smaller and a bit harder to come by. The number of refunds decreased by 1.9%, while their size decreased by 1.3% (or about $36--this is a correction from the $55 reported on the show). In this episode we talk about what happened and why, our national love affair with tax refunds, corporate tax avoidance, and why the IRS isn’t pursuing as many investigations despite new data that reveals that more people are cheating on their taxes.   Summary Intro: smaller refunds, unexpected bills JH’s notes from the field: an accountant’s-eye view of tax season How do we explain these changes? Tax refunds: why do we expect them? What are the benefits and drawbacks of receiving one? The number of people and businesses