Is Owing the IRS Money a Bad Thing? Not Necessarily.
Most people who file a tax return wind up with a refund from the IRS. That refund can be modest, or it can be sizable. But what if you land in the opposite boat and wind up owing the IRS money? It may seem like a horrible position to be in, but in reality, it's not such a bad thing at all.
When you get a refund in conjunction with filing your tax return, it means you overpaid your taxes the previous year and gave the government an interest-free loan for absolutely nothing in return. When you owe money, it means you got an interest-free loan and are simply returning the sum you were never entitled to keep in the first place.
Now, which actually sounds worse?
Source Fool.com
