Many taxpayers use the withholding/estimated tax method to fund their emergency fund. Each payday these individuals pay the IRS much more than they need to. These overpayments could amount to thousands of dollars each year.
The overpayments are returned to the taxpayer as a tax refund. A tax refund represents an interest-free loan the taxpayer makes to the IRS. The taxpayer is not entitled to interest from the IRS.
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