The Internal Revenue Service sends out millions of tax rebates each year. Although quite common, there are several factors that determine how fast you get your tax rebate and how much you receive. Some nefarious individuals use this as an opportunity to perpetrate crime.

Identification

A tax rebate, also called a tax refund, is money that the Internal Revenue Service returns to taxpayers who have paid too much to the federal government during the fiscal year, reports Investor Words.

Significance

Most taxpayers receive some sort of rebate after calculating their deductions and credits when filling out their annual tax return.

Receiving a Tax Rebate

Traditionally, the Internal Revenue Service has returned money to the taxpayers via a physical check through the mail; however, the IRS now offers to deposit tax rebates directly into personal bank accounts, reports IRS.gov.

Tips

People with fairly straightforward tax returns--usually those who make under $56,000 a year--should consider filing an electronic tax return and receive their rebate by direct deposit, reports the IRS. E-filing is free, and you receive your rebate faster by direct deposit.

Warning

Scam artists will pretend to be an IRS official and entice people to give up financial information by claiming to offer a faster rebate or even a larger one. The IRS does not have the legal authority to do this and warns people not to respond to this scam.

Source:

Tax Rebate

InvestorWords.com

Internal Revenue Service

Resource:

IRS E-file for Individuals

IRS Warns of New E-Mail and Telephone Scams Using the IRS Name