Nearly 40 percent of American taxpayers wait until the last week before the April 15 deadline to file their annual income tax returns, says a University of Michigan tax expert.
Many taxpayers wait until the last possible moment to send in their return.
And with more than 70 percent of taxpayers entitled to a refund, procrastination amounts to giving the government an interest-free loan, he adds. Those that file later, on average, have lower refunds, more complex returns and higher incomes. Slemrod says that during tax time, Americans think not only about when to file their tax return, but some also contemplate how much income to report. According to the Internal Revenue Service, about 18 percent of what should be paid is not, although the percentages vary widely across type of income, ranging from 32 percent for self-employed earnings to just 1 percent for wage income. The tax returns this group eventually filed were tracked and closely compared to a group of similar taxpayers who did not receive the letter.