IRS Reports Record-Breaking Tax Season

A downturn in the economy coupled with new tax breaks resulted in some interesting records set by the IRS this spring. More refunds were processed during this tax filing season than ever before, and the refunds were larger than they were in the past. As of April 19, the IRS had processed approximately 77 million refunds. The average refund was $1,937, up 13 percent from last year. Nearly half of the taxpayers receiving refunds requested direct deposit of the refunds into their bank accounts.

Electronic filing of 2001 tax returns increased by 14% over last year with 45.8 million tax returns filed electronically as of April 19. Last year taxpayers electronically filed 40.2 million tax returns.

Taxpayers owing money were 8 percent more likely to make electronic payments this spring than they were last year. The IRS reports that 626,000 electronic payments were made for 2001 income tax returns. Credit card payments were down this year by approximately 15,000.

Factors contributing to the increase in quantity and amount of refunds include lower tax rates, an increase in the Child Tax Credit, an increase in layoffs that can move taxpayers to a lower tax bracket, and capital losses due to a downturn in stock market performance. Taxpayers who make estimated payments frequently base their payments on the prior year income tax. That practice resulted in an overpayment of estimated taxes for many taxpayers this year.

You may like these other stories...

Savvy tax planning is about more than knowing what to write off. Just as essential is knowing when to take deductions. Choosing to stuff deductions into one tax year as opposed to another bears directly on how much winds up...
Tesco says it overstated profit forecastStanley Reed of the New York Times reported that Tesco, the large British grocery retailer, disclosed on Monday that it had overstated its expected half-year profit by about $400...
The IRS has announced the special per diem rates for 2014-15 that taxpayers can use for substantiating the amount of ordinary and necessary business expenses incurred while traveling away from home. The new per diem rates...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.