Transcript for IRS responds to outrage over smaller tax refunds
gears to the growing anger over shrinking tax refunds. It's the first tax season since his new plan went into effect and people are flocking to social media to complaint they're not getting back as much money as last year. Rebecca Jarvis is here with more. Rebecca, what is behind this? Good morning, Michael. Guy, good to see you. Most look forward to that refund check. Some even rely on it but so far this year many of those received tax refunds in the past aren't getting them and some are even having to pay extra. According to the irs, the average refund is down more than 8%, about $170 from last year. The government shutdown also delaying some filings. With the total number of returns down 12.4% from last year, in the first official week of tax season. Eva says she owes on this year's tax returns. In past years I get about a thousand or 1500 back so I can pay my property taxes and this year I just don't have a refund to pay. Reporter: On social media thousands are using #taxscam and # neverowedbefore. One woman writing on Twitter I always got a small refund. I owe $300 this year, so, yeah, tax the treasury department firing back calling the reports misleading writing, refunds are consistent with 2017 levels and down slightly from 2018 based on a small initial sample from only a few days of eight da. Okay, so what explains this smaller refund? According to the tax policy center most Americans, about 80%, did get a tax cut in 2018 but those savings showed up in paychecks because the irs changed its withholdings this year, Michael. So reality check, 80% received a tax cut. Why are refunds smaller? Basically in the paycheck people got more. If you got $40 extra in your paycheck that would about a thousand dollars more instead of seeing it refund check, you got it in the paycheck but might not have noticed it along the way. Thought you were getting there and get it at the end of the year. People like that little check. Rebecca, thanks very much.
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