The main circumstance where you might receive a tax refund from the IRS is when you've paid more taxes than what you actually owed. During the year, the IRS collects taxes from your paycheck that goes from the employer directly to the IRS. At the end of the year, you are required to file a tax return and on that return will show based on what you've paid, your deductions and your other investments whether or not you've paid too little or too much. If you paid too much during the year, you will recieve money back known as a tax refund.