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How does the IRS know someone is due a refund without a tax return?
Withholding would account for some of it, I would assume. Perhaps a large portion is for small filers who pay withholding, but didn't make enough to pay taxes, so it should have all been refunded.
rhankins- pretty simple really. They have all the data that was sent to you. With just W-2 and 1099's they can tell if a refund is due or not. When you add in credits and deductions then the refund amounts are increased - whether that is part of the quoted amount or not is unclear though.
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