Accounting Dictionary
Credits or refunds
Where tax is overpaid for any year, it ordinarily will be refunded by the IRS if the taxpayer owes no tax for any other year. If the taxpayer does owe a tax, the overayment is credited against the tax that is due the government, and any balance is refunded. Credits and refunds may be allowed only within specified periods if, within such periods, a claim for refund or credit is filed.