Question

May the joint Committee  on Taxation indefinitely delay a large refund claimed on a tax return?

May the joint Committee  on Taxation indefinitely delay a large refund claimed on a tax return?

Homework Answers

Answer #1

In my view, the joint Committee should not delay a large refund claimed on tax return indefinitely because it leads to cash flow problem for businesses, professionals and individuals. They plan their spending/ savings keeping refunds in mind and indefinite delay in refunds will cause money circulation problem. This may slow the churn rate of economy, cause lower domestic demand/ investment problem and thus adversely affect the economy as a whole at macro level stemming from micro level.

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