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IRS Oversight Board
The number of individual, business and tax-exempt returns filed electronically has steadily been rising.
The holiday season is coming to a close, which means it’s time to gear up for tax season.
For most Americans, that will start by turning on the computer.
The majority of individual taxpayers now file their taxes electronically, according to the IRS Oversight Board’s annual electronic tax filing report to Congress, which was issued last week.
The report found that 78 percent of individual tax returns are currently filed electronically. That figure is expected to top 80 percent in 2012.
More broadly, 67 percent of major individual, business and tax exempt returns have been filed electronically in 2011, up eight percentage points from 2010.
The IRS is not expected to meet a goal of having 80 percent of all major tax returns filed electronically by 2012, although they expect to hit that target within a few years.
Last year, the IRS stopped automatically mailing tax forms to individuals. That’s one of several measures it has taken as more people switch to electronic filing.
Related:
Most Americans say go ahead, tax the rich more
Here’s who won’t be paying federal income taxes this year
Leave a Comment:
The IRS is silly sometimes. They charge the people with the most complex tax forms money to file electronically. For some reason they would rather pay a government employee to input a paper filed form for free. You would think it would be the reverse you key in your form for the government and its free you paper file and we charge you. If you dig long enough the irs does have a free electronic form filling thing that most people can use but its most advanced feature is it can add numbers..... Then again lots of people pay tax companies to electronically file very simple tax forms that the IRS does let people file for free.
I've looked for free filling forms and I couldn't find it. Could you post where you found it or at least the program/form's name?
found it on the irs website
Im willing to bet that if I had 5 different tax professionals do my taxes - I'd get 5 different answers to what my tax bill would be.
Its sad that we have to have such a messed up tax code. I say we tax what people spend - not what they make.
While that sounds appealing, it does tend to penalize the poor, who spend a far greater percentage of their income in everyday living expenses than richer folks. It also penalizes spending, which would have an adverse affect on our consumer-driven economy.
My thought - everyone pays 2% on food, 5% on clothes, 10% on cars, 30% on luxury yachts, planes, etc. (I have no idea what the actual percentages would be, but you can have lower %s on items that are necessities) And if you want to add flexibility - have it where each year (or quarter) the govt determines what the new rates will be based on how the economy is doing. 1) This makes the same item cost the same for everyone 2) It taxes those who make money illegally, or who are here illegally and don't file taxes 3) Greatly simplifies the tax code 4) Puts the burden on business to make sure taxes are collected correctly - far fewer businesses than people filing tax returns 5) If a company is cheating - you can fine them a lot more than trying to get $$$ from citizens who likely cheated because they couldn't afford it in the first place
I'm still not completely sold on it. People would buy fewer cars, yachts, aircraft, etc. which would penalize the middle class workers who make them. As it is, sales taxes on cars already drive me to look at used, which does nothing for the auto manufacturing industry. That's not to say a consumer tax would be any less fair than the current system, but there are drawbacks to everything.
Taxing yachts nearly killed the US boating industry years ago.
It would penalize mostly Chinese middle class because that's where most of the stuff on store shelves is made. America produces far fewer consumer goods than even in 1990s. America produces most foodstuff it consumes, but people will not eat less because of tax (and if they will, it would only stem the growing epidemic of obesity :) . Most Americans in non-farm, non-food jobs now produce either services or goods to be bought by corporations (do consumers buy Caterpillar diggers, Boeing aircraft, or enterprise class servers?)
Even if you looked at new, the sale would benefit more likely Japan, Korea, or Europe, than Detroit - just look at statistics.
Cottage industry. CPA's, accountants, tax lawyers, H&R Block, Turbo Tax, etc....
God forbid we should go to a streamlined flat tax...one page; I made this/I owe that. Screw deductions (which many just lie-cheat on anyways)...but with the elimination of deductions...lower the G.D. tax rate!
But NOoooooo...what, pray tell, would become of all these lawyers/paper-pushers.
SIMPLIFY THE DAMN THING! Even the head of the IRS says it's too complicated and has his taxes done by a professional. PS; hey KC, yes Fair Tax would be better than flat but so many people won't take the time to understand it. So, I'd at least settle for a flat tax.
I'd certainly agree with eliminating deductions and tax credits. You owe what you owe, no "adjustments." I've never itemized and have managed to live quite well.
My other suggestion to fix the tax code was to tax me at 0% and then I don't care what you do with everyone else (and thats a joke - sadly though, thats how Americans have become - solving problems isn't about making it right for all Americans - but making it most beneficial to ME. Fix healthcare? OK - as long as by 'fix' you mean that I get the best care for the least amount of money out of my pocket)
KC. Another thing; when 47% of the people pay no tax, their vote counts the same as those who pay through the nose. WTF? That's like sitting in on a high-stakes poker game and the HOUSE is footing your stake. Nothing to lose, everything to gain.
At least a flat tax since "fair" tax seems to complicated for those who won't take the time to study the damn thing. If they did, they'd realize a Fair Tax would be a boon to lower income folks. So...I go to the taxman and see the first IRS tax form (early 20th century.) One page, so simple a monkey could fill it out. Do it it ten minutes...pay no one for unnecessary services. Be done with it. I'd much rather pay a lower tax rate at the expense of losing deductions. Just for the simplicity of it all.
"Another thing; when 47% of the people pay no tax ..." - The Beev
And that's because of the maldistribution of income - I am sure that the 47% who do not pay Federal taxes because of their low income, would be glad to pay Federal taxes if it meant earning more income.
The Beev--I don't understand. Are you saying that only people who pay taxes should vote? That's really messed up.
Perhaps Mike. Let me ask you if this might be fair then. Have TWO seperate flat tax rates. Those making under $150,000 (joint)....or $100,000 single...pay 10% to help keep the country running. Especially since the people way down at the bottom are THE recipients of social services, food stamps, welfare, ER visits, police protection, etc....then the higher end income folks pay 20%. NO DEDUCTIONS, no cheating.
I'm just saying if everyone has a say in the political process, shouldn't everyone post some kind of stake? If people are going to be recipients of a socialized system...shouldn't they contribute SOMETHING for the common good?
Keep it civil man,...just asking you a question. Not confrontatory.
beev, you are 100% correct. everyone should have some skin in the game.
Well, I think we have to put some things into perspective. First, those who do not pay Federal taxes DO pay (usually) state taxes, city taxes, payroll taxes, sales taxes, etc. The more localized a tax source is the more regressive the tax system. Second, probably the most effective anti-poverty program that has been administerd by the Federal government (and in many cases State governments) has been the EITC. Third, those who are recipients of government's largess is not just those on the bottom-rung of the economic ladder. In fact those located on the top rungs obtain far more governmental benefits than those on the lower rung.
Simply put, we can keep what I believe is a beneficial progressive tax system at the Federal level while making it simple. It's not the progressive nature of the tax system that makes it complicated, it's the exclusions, exceptions, etc. - that makes its complicated - most of which is set up for the benefits of the very wealthy.
One other thing - despite it's name of "flat tax", it's actually a regressive burden. Someone who made $10,000 last year and is taxed at a 10% rate, has $1,000 coming out of their pay check which would be used for paying for absolute necessities (i.e. food, shelter). Someone making $100,000 and also taxed at 10% has $10,000 coming out of their pay check. That $10,000 probably is not going towards the payment of absolute necessities, and therefore does not represent the same level of "burden" as someone making $10,000.
Hmm Beev - I have to disagree. If I make 100,000 - I pay $10,000 in taxes - take home $90,000. If I make $101,000, I would pay $20,200 in taxes - take home $80,800...seems a bit unfair. SO - they then make it a little more complicated and you only pay the 20% taxes on the portion above $100,000 - which is fine, but isn't that kind of where we started. Im sure it wouldn't be too many years (months, weeks??) before some politician comes up with the grand idea that 'well for those making less than $50,000, they should pay 5%'. And a few years later another brilliant politician would come up with the idea of if you make less than $25000 you shouldn't pay any taxes - OHH, and if you have kids, you should deduct some from your income, OHH - and this is great - to spur the housing marking - any interest you pay on your mortgage you can take off your income too. This will be the best tax code ever!
KC...yes, I see your point about having the misfortune of excelling and earning $1 over a certain tax ceiling. ...Key reason why a "Fair" (consumption tax) should be further explored. No tax on essentials, but if someone has the big bucks for the Audi, Porsche, 80 inch LED screen, yacht, $$$ vacations...then they pay for such luxuries in a tax rolled right into the cost of the item/purchase.
Hell, I don't know...but I DO know this; the current tax code is absurdly over-complicated and has more loopholes than a block of Swiss cheese to scam the system. I still believe though EVERYONE should pitch in, in some equitable fashion.
I think when they came up with the progressive tax rate a century ago or so it was a great idea. Unfortunately, they didn't take into account that we are human and humans always try to get around the rules. From sneaking home with pens from the office to not telling a clerk she undercharged us, we just can't help ourselves. So no matter the system we come up with next, there will be someone who will find a loophole. Um, and now for shameless self-promotion. Hate the IRS? Well, buy "Tax Break" the new ebook about a man who plants a bomb in the Austin IRS office ()
I'm a working tax professional, and I've seen a lot of ideas on how to simplify the tax return by eliminating deductions and credits. The only problem is, it sounds great until it's YOUR deduction or credit they are taking away. If you want to get the system simplified, tell your Reps and Senators in Congress--they are the people who make the tax laws.
One thing I would like to see eliminated altogether is the Alternative Minimum Tax. This is an absurd program that only hurts the middle class, and it is a can of worms to calculate. Every year it has to be shored up with legislation. It needs to go!
How about absurdities like Marriage penalty tax? And for me, the ultimate insult is the DEATH TAX! Good grief...reminds me of John Lennon's "Taxman" except back then the Death Tax wasn't a reality yet.
I have no problems with a fair tax but a fair tax to whom? We all want to be the greatest nation on earth yet nobody wants to pay or sacrifice for it. As far as the 47%, as a person that does earn six figures I would never want to change places with any of those folks. Moving every year or so, earning less than 30k a year. I think the rest of us should pay our share of taxes but it comes down to income inequality. People confuse fair tax with my buddy Herman's 9-9-9 plan but that could never be so simple. The Bush tax cuts are no longer helping. Reagan and Clinton raised taxes during recessions and look what happened each time. I think we need to revisit that or the economy will never improve for the majority of us.
From a small business perspective. I have to file taxes quarterly on employees. If I hire someone at $20 hr and they work 40 hrs I should pay them $800.00, afterall they worked for it and earned it. If they want to contribute to retirement or if they owe any taxes then they should handle it like hard working responsible adults.
Instead the IRS forces me the employer to act as a tax collector and maintain their IRS forms and deduct their taxes and witholdings and send it to them. If I do it wrong I am prosecuted, If I refuse to do it I am prosecuted, so there is no choice.
They have me acting as an unpaid tax collector and they dont even give you the benifit of the doubt and allow you to see or touch your hard earned money before you have to pay them......they get thiers first before your check is even written up.
Its sad when I have workers making over $2200 biweekly yet they only receive $1500 in actual pay.
The IRS is scum and criminal and yet they become more powerful every year and demand more money every year.
Things need to change.
Best way to help the poor: Raise the standard deduction to $20,000.00 per taxpayer.
Yes! The first tax bracket starts at $20,000.00
let them keep it and spend it.
Yes! Even the states will benifit with more local spending.
When Alan Greenspan was around, we actually had a surplus of dollars then #43 came along and turned that into the biggest debt this nation has ever seen (took 3 months). #42 was a flake but he was a good leader. Keep #44 where he's at! Did you see the debates?
My profession is that of a federally-licensed Enrolled Agent and I complete tax and refundable credit claims forms for small businesses and individuals, represent taxpayers before the IRS and provided wealth retention ideas and solutions to my own customers and clients on a year-around basis.
Smart people e-file their tax returns; not so smart people rely on "snail mail" and morons file inaccurate returns or don't file at all until the IRS "comes calling."
Thats a bad news,
Regards
Ali khan
www.aliwaji.com
Log on now? Before Congress gets back to work and retroactively deals with things such as the AMT fix? Uhhhhh...........I don't think so. I think I'll wait until sometime in April. As far as the concept of electronic filing is concerned, I've been doing that for years and years. Unlike our Treasury Secretary, however, I don't blame any issues or failings on TurboTax.
The odd thing about our brilliant Treasury Secretary is the fact that most of the on-line programs have really great "help" features that help you determine what kinds of checks you need to report on your return. It wasn't any big mystery, Mr. Treasury Secretary......................................