Payment from the IRS is a term used to describe a REFUND. A REFUND is a payment made by the Internal Revenue Service (IRS) to taxpayers who have paid too much in taxes. This payment is usually made in the form of a check or direct deposit. Refunds are typically issued when a taxpayer has overpaid their taxes, either through an overestimation of their tax liability or through an error on the part of the IRS.