etrent17/irs-articles huggingface dataset:
IR-2010-89, Aug. 5, 2010
WASHINGTON — The Internal Revenue Service today announced that starting with next year’s tax filing season it will no longer provide tax preparers and associated financial institutions with the “debt indicator,” which is used to facilitate refund anticipation loans (RALs).
“As we prepare for tax season every year, we look at past practices and consider whether they still make sense. We no longer see a need for the debt indicator in a world where we can process a tax return and deliver a refund in 10 days,” IRS Commissioner Doug Shulman said. “We encourage taxpayers to use e-file with direct deposit so they can get their refunds in just a few days.”
So far this year, more than 95 million tax returns have been e-filed, representing more than 70 percent of tax returns.
“Refund Anticipation Loans are often targeted at lower-income taxpayers,” Shulman said. “With e-file and direct deposit, these taxpayers now have other ways to quickly access their cash.”
The IRS has been reviewing refund settlement products, such as RALs and Refund Anticipation Checks (RACs), as part of the Return Preparer Review released in January. Specifically, the IRS announced that it would study refund settlement products.
RALs are loans secured by a taxpayer’s anticipated tax refund. Currently, tax preparers who electronically submit a client’s tax return receive in the acknowledgment file an indication of whether an individual taxpayer will have any portion of the refund offset for delinquent tax or other debts, such as unpaid child support or delinquent federally funded student loans. This acknowledgment is known as the debt indicator, and is used as an underwriting tool for RALs.
The IRS announcement would remove the debt indicator starting with the upcoming 2011 tax filing season. The IRS noted that taxpayers will continue to have access to information about their tax refunds and any offsets through the “Where’s My Refund?” service on IRS.gov.
RACs are temporary bank accounts established on behalf of a taxpayer into which a direct deposit refund can be received and out of which a bank typically issues a payment to the taxpayer.
With both RALs and RACs, tax preparation and product fees are subtracted directly from the refund, and the taxpayer does not make any “out-of-pocket” payments. They are frequently marketed to taxpayers who do not have cash to pay for professional tax preparation services.
In a related effort, the IRS plans to explore the possibility of providing a new tool for the 2012 tax filing season to give taxpayers a mechanism to use an appropriate portion of their tax refund to pay for the services of a professional tax return preparer. The IRS plans to engage with taxpayers, consumer advocates and the tax return preparer community to consider whether providing this option would be a cost-effective way for consumers to pay for tax return preparation services.
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IR-2010-102, Sept. 30, 2010
WASHINGTON — The Internal Revenue Service today issued guidance providing relief to homeowners who have suffered property losses due to the effects of certain imported drywall installed in homes between 2001 and 2009.
Revenue Procedure 2010-36PDF enables affected taxpayers to treat damages from corrosive drywall as a casualty loss and provides a ”safe harbor” formula for determining the amount of the loss.
In numerous instances, homeowners with certain imported drywall have reported blackening or corrosion of copper electrical wiring and copper components of household appliances, as well as the presence of sulfur gas odors. In November 2009, the Consumer Product Safety Commission (CPSC) reported that an indoor air study of a sample of 51 homes found a strong association between the problem drywall, levels of hydrogen sulfide in those homes and corrosion of metals in those homes.
Revenue Procedure 2010-36PDF provides the following relief:
Individuals who pay to repair damage to their personal residences or household appliances resulting from corrosive drywall may treat the amount paid as a casualty loss in the year of payment. 
Taxpayers who have already filed their income tax return for the year of payment generally have three years to file an amended return and claim the deduction.The amount of a loss that may be claimed depends on whether the taxpayer has a pending claim for reimbursement (or intends to pursue reimbursement) of the loss through property insurance, litigation or otherwise.
In cases where a taxpayer does not have a pending claim for reimbursement, the taxpayer may claim as a loss all unreimbursed amounts paid during the taxable year to repair damage to the taxpayer’s personal residence and household appliances resulting from corrosive drywall. 
If a taxpayer does have a pending claim (or intends to pursue reimbursement), a taxpayer may claim a loss for 75 percent of the unreimbursed amount paid during the taxable year to repair damage to the taxpayer’s personal residence and household appliances that resulted from corrosive drywall. 
A taxpayer who has been fully reimbursed before filing a return for the year the loss was sustained may not claim a loss. A taxpayer who has a pending claim for reimbursement (or intends to pursue reimbursement) may have income or an additional deduction in subsequent taxable years depending on the actual amount of reimbursement received.
For purposes of this revenue procedure, the term “corrosive drywall” means drywall that is identified as problem drywall under the two step identification methodPDF published by the CPSC and the Department of Housing and Urban Development in their interim guidancePDF dated January 28, 2010.
Further details and limitations can be found in Revenue Procedure 2010-36PDF on IRS.gov.
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Updated March 10, 2011 — The revised Form 8839PDF, Qualified Adoption Expenses, is available. 
IR-2010-100, Sept. 29, 2010
WASHINGTON — The Internal Revenue Service today issued guidance on the expanded adoption credit included in the Affordable Care Act. The IRS also released a draft version of the form that eligible taxpayers will use to claim the newly-expanded adoption credit on 2010 tax returns filed next year.
The Affordable Care Act raises the maximum adoption credit to $13,170 per child, up from $12,150 in 2009. It also makes the credit refundable, meaning that eligible taxpayers can get it even if they owe no tax for that year. In general, the credit is based on the reasonable and necessary expenses related to a legal adoption, including adoption fees, court costs, attorney’s fees and travel expenses. Income limits and other special rules apply.
In addition to filling out Form 8839, Qualified Adoption Expenses, eligible taxpayers must include with their 2010 tax returns one or more adoption-related documents, detailed in the guidance issued today.
The documentation requirements, designed to ensure that taxpayers properly claim the credit, mean that taxpayers claiming the credit will have to file paper tax returns. Normally, it takes six to eight weeks to get a refund claimed on a complete and accurate paper return where all required documents are attached. The IRS encourages taxpayers to use direct deposit to speed their refund.
Taxpayers claiming the credit will still be able to use IRS Free File to prepare their returns, but the returns must be printed out and sent to the IRS, along with all required documentation.
Related Items:
Notice 2010-66PDF
Revenue Procedure 2010-31PDF
Revenue Procedure 2010-35PDF
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IR-2010-97, Sept. 14, 2010
WASHINGTON — The Internal Revenue Service will host a special nationwide open house on Saturday, Sept. 25 to help taxpayers –– especially veterans and people with disabilities –– solve tax problems and respond to IRS notices.
One hundred offices, at least one in every state, will be open from 9 a.m. to 2 p.m. local time. IRS staff will be available on site or by telephone to help taxpayers work through issues and leave with solutions.
In many locations, the IRS will partner with organizations that serve veterans and the disabled to offer additional help and information to people in these communities. Partner organizations include the National Disability Institute (NDI), Vets First, Department of Veterans Affairs, National Council on Independent Living and the American Legion.
“Taxpayers have tremendous success solving their tax issues at our open houses,” IRS Commissioner Doug Shulman said. “I want to encourage veterans and people with disabilities to come in on Sept. 25. Just like we reached out earlier this year to small businesses and victims of the Gulf Oil Spill, we want to help other taxpayers put their toughest problems behind them.”
IRS locations will be equipped to handle issues involving notices and payments, return preparation, audits and a variety of other issues. At a previous IRS open house on June 5, over 6,700 taxpayers sought and received assistance and 96 percent had their issues resolved the same day.
At the Sept. 25 open house, anyone who has a tax question or has received a notice can speak with an IRS employee to get an answer to their question or a clear explanation of what is necessary to satisfy the request. A taxpayer who cannot pay a balance due can find out whether an installment agreement is appropriate and, if so, fill out the paperwork then and there. Assistance with offers-in-compromise — an agreement between a taxpayer and the IRS that settles the taxpayer’s debt for less than the full amount owed — will also be available. Likewise, a taxpayer struggling to complete a certain IRS form or schedule can work directly with IRS staff to get the job done.
Taxpayers requiring special services, such as interpretation for the deaf or hard of hearing, should check local listings and call the local IRS Office/Taxpayer Assistance Center ahead of time to schedule an appointment.
The open house on Sept. 25 is the third of three events scheduled after this year’s tax season. Plans are underway for similar events next year. Details will be available at a later date.
Reminder for Small Tax-Exempt Organizations
The IRS also encourages representatives of small tax-exempt charitable community organizations, many of which serve people with disabilities and veterans, to file Form 990-N before the Oct. 15 deadline. Community organizations that fail to file a Form 990-N by this date risk losing their tax exempt status. As of June 30, more than 320,000 organizations were at risk of losing their exempt status.
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IR-2010-95, Sept. 3, 2010
WASHINGTON — The Internal Revenue Service today issued guidance reflecting statutory changes regarding the use of certain tax-favored arrangements, such as flexible spending arrangements (FSAs), to pay for over-the-counter medicines and drugs.
The Affordable Care Act, enacted in March, established a new uniform standard that, effective Jan. 1, 2011, applies to FSAs and health reimbursement arrangements (HRAs). Under the new standard, the cost of an over-the-counter medicine or drug cannot be reimbursed from the account unless a prescription is obtained. The change does not affect insulin, even if purchased without a prescription, or other health care expenses such as medical devices, eye glasses, contact lenses, co-pays and deductibles. The new standard applies only to purchases made on or after Jan. 1, 2011, so claims for medicines or drugs purchased without a prescription in 2010 can still be reimbursed in 2011, if allowed by the employer’s plan.
A similar rule goes into effect on Jan. 1, 2011 for Health Savings Accounts (HSAs), and Archer Medical Savings Accounts (Archer MSAs).
Employers and employees should take these changes into account as they make health benefit decisions for 2011.
For details on current rules, see Publication 969 , Health Savings Accounts and Other Tax-Favored Health PlansPDF.
Updates on this and other health care reform provisions can be found on the Affordable Care Act page on IRS.gov. Notice 2010-59PDF and Revenue Ruling 2010-23PDF, posted today, further explains this change.
Related Item:
Questions and Answers on Over-the-Counter Medicines and Drugs 
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IR-2010-94, Sept. 1, 2010
WASHINGTON — The Internal Revenue Service announced availability of the summer 2010 issue of the Statistics of Income Bulletin, which features sole proprietorship data for tax year 2008.
About 23 million individual income tax returns reported at least one nonfarm sole proprietorship in tax year 2008, a 2 percent decrease since the prior year. Reported profits for those sole proprietorships decreased by 6 percent to $265 billion.
The Statistics of Income (SOI) Division produces the SOI Bulletin on a quarterly basis.  Articles included in the publication provide the most recent data available from various tax and information returns filed by U.S.taxpayers. This issue of the SOI Bulletin also includes articles on the following:
Foreign-controlled domestic corporations: Foreign-controlled domestic corporations (FCDCs) filed 64,000 U.S. income tax returns for tax year 2007, accounting for only 1 percent of all U.S. corporation income tax returns filed for the year. Almost half of FCDCs reported profits (i.e., net income) totaling $226 billion, and those companies reported $184 billion in taxable income. FCDCs reported $53 billion in U.S. tax liability for 2007.
Corporate foreign tax credit: For tax year 2006, U.S.corporations reported more than $78 billion in foreign tax credits on about $847 billion in worldwide taxable income.
International income and taxes: Real foreign-source taxable income for corporations with a foreign tax credit rose 43 percent between tax years 2002 and 2004. Likewise, real total receipts of controlled foreign corporations grew 19 percent between tax years 2004 and 2006, while total receipts for U.S.corporations increased by just over 11 percent. Several other trends toward increased foreign activity of U.S.persons, as well as increased U.S.activity of foreign persons, are examined in this article.
The Statistics of Income Bulletin is available for download at IRS.gov/taxstats. Printed copies of the Statistics of Income Bulletin are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 37954, Pittsburgh, PA 1520-7954. The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).
For more information about these data, write to the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608.
Related Items:          
SOI Bulletin: Summer 2010
Historical Tables and Appendix
 
 
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IR-2010-109, Oct. 28, 2010
WASHINGTON — The Internal Revenue Service is seeking applications for vacancies on the Advisory Committee on Tax Exempt and Government Entities (ACT). The committee provides a venue for public input on relevant areas of tax administration.
Vacancies exist in the following customer segments:
Employee Plans – two vacancies
Exempt Organizations – two vacancies
Tax Exempt Bonds – one vacancy
Indian Tribal Governments – two vacancies
Federal, State and Local Governments – three vacancies
Members are appointed by the Department of the Treasury and serve two-year terms, beginning in June 2011. Applications will be accepted through Dec. 1, 2010.
The ACT is an organized public forum for the IRS and representatives who deal with employee plans, exempt organizations, tax-exempt bonds, and federal, state, local and Indian tribal governments. The ACT allows the IRS to receive regular input on administrative policy and procedures of the Tax Exempt and Government Entities Division (TE/GE).
Applications can be made by letter or by completing an application form available on IRS.gov. In either case, applications should reflect the proposed member’s qualifications. Members of the ACT may not be federally registered lobbyists. A notice published in the Federal Register, dated Oct. 28, 2010, contains more details about the ACT and the application process.
The ACT membership application PDF is available on this web site.
Applications should be sent to Steven Pyrek, TE/GE Communications and Liaison Director, Internal Revenue Service, 1111 Constitution Ave., NW– SE:T:CL Penn Bldg., Washington, DC 20224, or by fax to 202-283-9956 (not a toll-free number).
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IR-2010-106, Oct. 25, 2010
WASHINGTON — The Internal Revenue Service has begun notifying about 1 million tax return preparers to remind them that they must renew their Preparer Tax Identification Numbers (PTIN) if they are still paid preparers. Use of the PTIN will be required on all federal returns prepared by paid tax return preparers starting Jan. 1.
Tax return preparers can register immediately using a new PTIN sign-up system available through www.IRS.gov/taxpros. Preparers will need to create an account, complete the PTIN application and pay a $64.25 fee before getting their PTINs.
The IRS will be sending approximately 125,000 notification letters each week for eight weeks. The notifications are based on those tax return preparers who currently have PTINs. Tax return preparers who received their PTINs prior to the new system launch on Sept. 28, 2010, must register using the new sign-up system. Existing PTIN holders who register through the new system will generally be reassigned their same numbers.
The PTIN was created several years ago as a nine-digit number that tax return preparers could obtain from the IRS to use on tax returns instead of their Social Security numbers.
The PTIN requirement is one of the main provisions in a new oversight program to help regulate the tax preparation industry. Anyone paid to prepare all or substantially all of any federal tax return or claim for refund must have a PTIN. The requirement applies to all tax return preparers, including those who are enrolled agents, certified public accountants and attorneys.
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IR-2010-105, Oct. 20, 2010    
WASHINGTON — The Information Reporting Program Advisory Committee (IRPAC) today released its 2010 Report, which is an annual report that includes recommendations on a wide range of tax administration issues.
IRPAC provides a public forum for the IRS and members of the information reporting community in the private sector to discuss relevant information reporting issues. The IRPAC is administered by the National Public Liaison Office of the IRS. IRPAC draws its members from the tax professional community
Based on its findings and discussions, IRPAC reviewed 30 issues and made recommendations on a broad array of issues and concerns, including the following:
Health care reporting (Form W-2) for 2011.
Information reporting (Form 1099-MISC) under the Patient Protection and Affordable Care Act of 2010.
Cost basis reporting by financial institutions of customer cost basis in securities transactions.
Payment reporting (Section 6050W) made in settlement of payment card and third party transactions.
Withholding and tax information reporting of payments of U.S. source income to foreign financial institutions and non-financial foreign entities, under Foreign Account Tax Compliance Act (FATCA).
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IR-2010-104, Oct. 12, 2010
WASHINGTON — The Internal Revenue Service today issued final regulations under a law change that will require reporting of basis and other information by stock brokers and mutual fund companies for most stock purchased in 2011 and all stock purchased in 2012 and later years. The reporting will be to investors and the IRS.
This additional reporting will be optional for stock purchased prior to these dates.
“This important reporting change means investors will now receive the information they need to more easily and accurately report their gains and losses,” said IRS Commissioner Doug Shulman. “We will continue to work closely with stakeholder groups to ensure a smooth implementation of the new requirement, which reduces the recordkeeping and paperwork burden for millions of taxpayers.”
These regulations, posted today in the Federal Register, implement a provision in the Energy Improvement and Extension Act of 2008.  Among other things, the regulations describe who is subject to this reporting requirement, which transactions are reportable and what information needs to be reported. Besides providing numerous examples, they also adopt a number of comments and suggestions received since the proposed regulations were issued last December.
Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, long used to report sales prices, will be expanded in 2011 to include the cost or other basis of stock and mutual fund shares sold or exchanged during the year. Stock brokers and mutual fund companies will use this form to make these expanded year-end reports.
The expanded form will also be used to report whether gain or loss realized on these transactions is long-term (held more than one year) or short-term (held one year or less), a key factor affecting the tax treatment of gain or loss. The expanded form, to be first used for calendar-year 2011 sales, must be filed with the IRS and furnished to investors in early 2012.
The IRS today also announced penalty relief for brokers and custodians for reporting certain transfers of stock in 2011.
The relief is described in Notice 2010-67PDF.
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IR-2010-103, Oct. 12, 2010
WASHINGTON — The IRS today issued a draft Form W-2PDF for 2011, which employers use to report wages and employee tax withholding. The IRS also announced that it will defer the new requirement for employersPDF to report the cost of coverage under an employer-sponsored group health plan, making that reporting by employers optional in 2011.
The draft Form W-2 includes the codes that employers may use to report the cost of coverage under an employer-sponsored group health plan.  The Treasury Department and the IRS have determined that this relief is necessary to provide employers the time they need to make changes to their payroll systems or procedures in preparation for compliance with the new reporting requirement. The IRS will be publishing guidance on the new requirement later this year.
Although reporting the cost of coverage will be optional with respect to 2011, the IRS continues to stress that the amounts reportable are not taxable. Included in the Affordable Care Act passed by Congress in March, the new reporting requirement is intended to be informational only, and to provide employees with greater transparency into overall health care costs.
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IR-2010-115, Nov. 23, 2010
WASHINGTON — The Internal Revenue Service today announced the selection of seven new members and a chairman for the Electronic Tax Administration Advisory Committee (ETAAC).
ETAAC provides an organized forum for discussion of electronic tax administration issues and supports the goal of increasing electronic interactions between tax professionals and the IRS.
“The IRS is pleased with the continued support of the ETAAC,” said Cecille M. Jones, deputy director, IRS Electronic Tax Administration and Refundable Credits. “ETAAC offers constructive observations and suggestions about current or proposed policies, programs and procedures.”
The new members will replace the outgoing members whose terms expired and will ensure continuity of the committee.
The new members are:
Sean Brennan of Philadelphia, Pa., is president of Brennan and Associates. He is a certified public accountant (CPA) e-filing both individual and business tax returns. Brennan has been teaching accounting and taxes at the college level for the past 13 years.
Alice Burnett of Lawrenceville, Ga., is the owner of Burnett & Associates. Her consulting firm offers operational expertise regarding electronic payment options, and she worked on the implementation and operation of the Electronic Federal Tax Payment System (EFTPS).
Ned Drinker of Conshohocken, Pa., is the tax manager of Oberthur Technologies of America Corporation. He is responsible for preparing and e-filing corporate returns, managing federal and state audits, as well as implementing sales tax software.
Douglas Simon of Lincolnshire, Ill., is the president and founder of HS&A Payroll Services, Inc. He is responsible for a suite of payroll processing solutions. Simon works with a wide range of companies and oversees both tax filing and compliance operations.
David Sullivan of East Greenwich, R.I., is tax administrator for the Rhode Island Division of Taxation. He is responsible for creating the E-Government Unit to assist in enhancing and improving interaction with customers using new technologies.
T.J. Turner of Sarasota, Fla., is director of Income Tax Research for Vertex Inc. He is responsible for leading the software development and tax accuracy of Vertex’s corporate income tax product suite.
Harris Widmer of Fargo, N.D., is a CPA and a partner in Widmer Roel PC. He provides tax consulting, audit,, and financial planning services to a wide variety of businesses and individual clients.
Phil Poirier of San Diego, Calif., has been elected by the members to serve as Chairman of ETAAC for 2010-2011.  Poirier is vice president, Government, Consumer Division, at Intuit Inc. He is responsible for government initiatives relating to Intuit’s consumer tax and personal finance businesses (TurboTax, Quicken and Mint.com).
Each June, the ETAAC submits a report to Congress reporting on the progress of the IRS’ electronic tax initiatives.  ETAAC was created in 1998 by the IRS Electronic Tax Administration as required by the IRS Restructuring and Reform Act of 1998 (RRA 98).
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IR-2010-114, Nov. 17, 2010
Washington — The Internal Revenue Service Advisory Council (IRSAC) issued its annual report today during a public meeting held in Washington, D.C., delivering a report with a series of recommendations on a wide range of tax administration issues.
IRSAC made several recommendations based on its findings and discussions, in some of the following areas:
Procedures related to filing for the Work Opportunity Tax Credit (WOTC).
Electronic business returns with Employer Identification Number (EIN)/Name Control mismatches.
Effectiveness of the Issue Management Program in Examinations.
IRS implementation of uncertain tax position (UTP) reporting.
Current filing requirements for Foreign Bank and Financial Accounts (FBAR).
Proposed continued education program and sponsor requirements for tax return preparers.
The primary purpose of IRSAC, which draws its members from the tax professional and academic communities, is to provide an organized public forum for senior IRS executives and representatives of the public to discuss relevant tax administration issues.
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IRS YouTube Videos: Tax Tips: Undeliverable Refunds - 2010 English | Spanish | ASL
IR-2010-113, Nov. 17, 2010
WASHINGTON — The Internal Revenue Service is looking to return $164.6 million in undelivered refund checks. A total of 111,893 taxpayers are due one or more refund checks that could not be delivered because of mailing address errors.
“We want to make sure taxpayers get the money owed to them,” said IRS Commissioner Doug Shulman. “If you think you are missing a refund, the sooner you update your address information, the quicker you can get your money.”
A taxpayer only needs to update his or her address once for the IRS to send out all checks due. Undelivered refund checks average $1,471 this year, compared to $1,148 last year. Some taxpayers are due more than one check.
The average dollar amount for returned refunds rose by just over 28 percent this year, possibly due to recent changes in tax law which introduced new credits or expanded existing credits, such as the Earned Income Tax Credit.
If a refund check is returned to the IRS as undelivered, taxpayers can generally update their addresses with the “Where’s My Refund?” tool on IRS.gov. The tool also enables taxpayers to check the status of their refunds. A taxpayer must submit his or her Social Security number, filing status and amount of refund shown on their 2009 return. The tool will provide the status of their refund and, in some cases, instructions on how to resolve delivery problems.
Taxpayers checking on a refund over the phone will receive instructions on how to update their addresses. Taxpayers can access a telephone version of “Where’s My Refund?” by calling 1-800-829-1954.
While only a small percentage of checks mailed out by the IRS are returned as undelivered, taxpayers can put an end to lost, stolen or undelivered checks by choosing direct deposit when they file either paper or electronic returns. Taxpayers can receive refunds directly into their bank, split a tax refund into two or three financial accounts or even buy a savings bond.
The IRS also recommends that taxpayers file their tax returns electronically, because e-file eliminates the risk of lost paper returns. E-file also reduces errors on tax returns and speeds up refunds. E-file combined with direct deposit is the best option for taxpayers; it’s easy, fast and safe.
The public should be aware that the IRS does not contact taxpayers by e-mail to alert them of pending refunds and that such messages are common identity theft scams. The agency urges taxpayers not to release any personal information, reply, open any attachments or click on any links to avoid malicious code that will infect their computers. The best way for an individual to verify if she or he has a pending refund is going directly to IRS.gov and using the “Where’s My Refund?” tool.   
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IR-2010-112, Nov. 10, 2010
WASHINGTON — Nearly 99 million individuals filed their federal income tax returns electronically during 2010, a 3 percent increase in the IRS e-file rate. Of the 141.5 million returns filed so far this year, almost 70 percent were filed electronically.
Each year, more taxpayers chose to e-file their tax returns. Last year, nearly 95 million taxpayers or 67 percent used e-file. In the past decade, the number of individual tax returns e-filed has increased by 145 percent. The overall number of individual tax returns increased only by 8 percent. IRS e-file is no longer is the exception; now it is the norm.
 

 Year
  Filed


Total
Returns


e-filed
  Returns


Percent
e-filed


2001


130,965,000


40,244,000


30.73%


2002


131,728,000


46,892,000


35.60%


2003


131,557,000


52,944,000


40.24%


2004


132,200,000


61,507,000


46.53%


2005


133,933,000


68,476,000


51.13%


2006


136,071,000


73,255,000


53.84%


2007


140,188,000


79,979,000


57.05%


2008


153,650,000


89,853,000


58.48%


2009


141,376,000


94,980,000


67.18%


2010


141,536,000


98,740,000


69.76%

Home Computer e-filers
Taxpayers who prepare their own tax returns using home computers continued to set the pace for e-file. This year, more than 35 percent of e-filers prepared and filed their returns themselves.
Almost 35 million returns were e-filed from home computers, up 8 percent from last year.
Direct Deposit Refunds
More than 74 million refunds were electronically deposited into taxpayers’ accounts, saving taxpayers a trip to the bank. More importantly, these taxpayers received their refunds at least a week faster than those receiving paper checks.
These direct deposit refunds accounted for almost 69 percent of all refunds, up from 66 percent of refunds last year. Overall, the IRS issued 109 million refunds, averaging $2,994 per refund; direct deposit refunds averaged $3,189 per refund.

2010 FILING SEASON STATISTICS


Cumulative through the weeks ending 11/06/09 and 11/05/10


 


Individual Income Tax Returns


2009


2010


% Change


Total Receipts


  143,529,000


141,536,000


-1.4%


Total Processed


143,079,000


141,536,000


-1.4%


 


 


 


 


E-filing Receipts:


 


 


 


TOTAL


95,478,000


98,740,000


  3.4%


Tax Professionals


63,285,000


63,893,000


  1.0%


Self-prepared


32,193,000


34,847,000


  8.2%


 


 


 


 


Web Usage:


 


 


 


Visits to IRS.gov


275,308,302


281,765,152


2.3%


 


 


 


 


Total Refunds:


 


 


 


Number


111,163,000


108,923,000


-2.0%


Amount


$315.290


Billion


$326.125


Billion


  3.4%


Average refund


$2,836


$2,994


  5.6%


 


 


 


 


Direct Deposit Refunds:


 


 


 


Number


72,982,000


74,460,000


  2.0%


Amount


$220.250


Billion


$237.444


Billion


  7.8%


Average refund


$3,018


$3,189


  5.7%

 
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IR-2010-111, Nov. 9, 2010
WASHINGTON — The Internal Revenue Service today announced it has awarded more than $11 million in matching grants to support its Volunteer Income Tax Assistance program.
Under the VITA Grant Program, the IRS awarded matching grants to 177 organizations that will offer free tax preparation services during the 2011 filing season at locations in all 50 states and the District of Columbia.
“These funds will enhance the VITA program and the work of volunteer tax preparers who provide an invaluable service to millions of taxpayers each year,” said Richard Byrd, Jr., IRS Wage and Investment Operating Division Commissioner.
The funds will be used to:
Enable VITA programs to extend services to underserved populations and hardest to reach areas, both urban and non-urban
Increase the capacity to file returns electronically
Heighten quality control and improve the accuracy of returns prepared by the VITA sites
Enhance training of volunteers.
There was a strong response to the 2011 VITA grant program with 374 organizations submitting applications requesting more than $33 million in matching funds.
VITA partners are organizations that provide free federal tax return preparation and electronic filing to low and moderate income individuals. For tax year 2010, individuals and families with an adjusted gross income of $49,000 or lower are eligible for assistance.
The VITA program has enjoyed tremendous support since it was created in 1969. For example, more than 3 million tax returns were prepared at over 12,000 locations during the 2010 filing season by volunteers working under either the VITA program or the Tax Counseling for the Elderly, another volunteer program sponsored by IRS.
Questions can be sent to Grant.Program.Office@irs.gov.
Related Item: 2011 Grant RecipientsPDF
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IR-2010-110, Nov. 9, 2010
WASHINGTON — People can now weatherize their homes and be rewarded for their efforts. According to the Internal Revenue Service, homeowners making energy-saving improvements this fall can cut their winter heating bills and lower their 2010 tax bill as well.
Last year’s Recovery Act expanded two home energy tax credits: the nonbusiness energy property credit and the residential energy efficient property credit.
Nonbusiness Energy Property Credit
This credit equals 30 percent of what a homeowner spends on eligible energy-saving improvements, up to a maximum tax credit of $1,500 for the combined 2009 and 2010 tax years. The cost of certain high-efficiency heating and air conditioning systems, water heaters and stoves that burn biomass all qualify, along with labor costs for installing these items. In addition, the cost of energy-efficient windows and skylights, energy-efficient doors, qualifying insulation and certain roofs also qualify for the credit, though the cost of installing these items does not count.
By spending as little as $5,000 before the end of the year on eligible energy-saving improvements, a homeowner can save as much as $1,500 on his or her 2010 federal income tax return. Due to limits based on tax liability, amounts spent on eligible energy-saving improvements in 2009, other credits claimed by a particular taxpayer and other factors, actual tax savings will vary. These tax savings are on top of any energy savings that may result.
Residential Energy Efficient Property Credit
Homeowners going green should also check out a second tax credit designed to spur investment in alternative energy equipment. The residential energy efficient property credit equals 30 percent of what a homeowner spends on qualifying property such as solar electric systems, solar hot water heaters, geothermal heat pumps, wind turbines, and fuel cell property. Generally, labor costs are included when figuring this credit. Also, except for fuel cell property, no cap exists on the amount of credit available.
Not all energy-efficient improvements qualify for these tax credits. For that reason, homeowners should check the manufacturer’s tax credit certification statement before purchasing or installing any of these improvements. The certification statement can usually be found on the manufacturer’s website or with the product packaging. Normally, a homeowner can rely on this certification.
The IRS cautions that the manufacturer’s certification is different from the Department of Energy’s Energy Star label, and not all Energy Star labeled products qualify for the tax credits.
Eligible homeowners can claim both of these credits when they file their 2010 federal income tax return. Because these are credits, not deductions, they increase a taxpayer’s refund or reduce the tax owed. An eligible taxpayer can claim these credits, regardless of whether he or she itemizes deductions on Schedule APDF. Use Form 5695PDF, Residential Energy Credits, to figure and claim these credits.
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IR-2010-129, Dec. 29, 2010
WASHINGTON — The Internal Revenue Service today announced the 2011 inflation adjustments to the excise taxes on air transportation.
Excise taxes apply to the domestic segments of taxable air transportation and to the use of international air facilities. The Airport and Airway Extension Act of 2010, Part IV, signed into law on Dec. 22, 2010, extends these excise taxes to air transportation that begins or is paid for no later than March 31, 2011.
These excise taxes are adjusted annually for inflation:
For 2011, the excise tax on the domestic segment of taxable air transportation is $3.70, unchanged from 2010.
The excise tax for 2011 for international flights that begin or end in the United States is $16.30, up from $16.10 in 2010.
The tax on use of international air facilities also applies at a reduced rate to departures of interstate flights that begin or end in Alaska or Hawaii. For 2011, the international air facilities tax on these flights is $8.20, up from $8.10 in 2010.
The new rates take effect Jan. 1, 2011.
Further details pertaining to the excise taxes on air transportation can be found in Form 720PDF, Quarterly Excise Tax Return, and its instructionsPDF.
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IR-2010-128, Dec. 23, 2010
WASHINGTON — The Internal Revenue Service today issued new guidance allowing the continued use of health flexible spending arrangement (FSA) and health reimbursement arrangement (HRA) debit cards for the purchase of prescribed over-the-counter medicines and drugs.
The new guidance modifies previous guidance to permit taxpayers to continue using FSA and HRA debit cards to purchase over-the-counter medications for which the taxpayer has a prescription. Effective after Jan. 15, 2011, in accordance with the new guidance, this use of debit cards must comply with procedures reflecting those that pharmacies currently follow when selling prescribed medicines or drugs.
The procedures include requirements that a prescription for the medication be presented to the pharmacy or the mail-order or web-based vendor that dispenses the medication and that proper records be retained.
In accordance with the Affordable Care Act, the cost of over-the-counter medicines or drugs can be reimbursed from a health FSA or HRA if a prescription has been obtained. The requirement to obtain a prescription does not apply to insulin.
The prescription requirement applies to purchases made on or after Jan. 1, 2011, and not to purchases made in 2010 even if reimbursed after Dec. 31, 2010. Because the requirement applies only to over-the-counter medications, it does not apply to other health care expenses such as medical devices, eye glasses or contact lenses.
The new guidance, IRS Notice 2011-5PDF, as well as answers to frequently asked questions on IRS.gov, also contain further details on health FSA and HRA debit card purchases, including purchases from health care providers other than pharmacies and mail order and web-based vendors.
For guidance on health FSA and HRA debit card purchases at “90 percent pharmacies,” see IRS Notice 2010-59PDF. More information on health care reform provisions can be found on the Affordable Care Act page on IRS.gov.
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IR-2010-127, Dec. 23, 2010
WASHINGTON — In 2011, personal exemptions and standard deductions will rise and tax brackets will widen due to inflation, the Internal Revenue Service announced today.
These inflation adjustments relate to eight tax provisions that were either modified or extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that became law on Dec. 17. New dollar amounts affecting 2011 returns, filed by most taxpayers in early 2012, include the following:
The value of each personal and dependent exemption, available to most taxpayers, is $3,700, up $50 from 2010.
	 
The new standard deduction is $11,600 for married couples filing a joint return, up $200, $5,800 for singles and married individuals filing separately, up $100, and $8,500 for heads of household, also up $100. The additional standard deduction for blind people and senior citizens is $1,150 for married individuals, up $50, and $1,450 for singles and heads of household, also up $50. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.
	 
Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $69,000, up from $68,000 in 2010.
	 
The maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,751, up from $5,666 in 2010. The maximum income limit for the EITC rises to $49,078, up from $48,362 in 2010.The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children.
	 
The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $102,000 for joint filers, up from $100,000, and $51,000 for singles and heads of household, up from $50,000.
Several tax benefits are unchanged in 2011. For example, the monthly limit on the value of qualified transportation benefits (parking, transit passes, etc.) provided by an employer to its employees, remains at $230. Details on these inflation adjustments can be found in Revenue Procedure 2011-12PDF.
By law, the dollar amounts for a variety of tax provisions, affecting virtually every taxpayer, must be revised each year to keep pace with inflation. Most of the new dollar amounts, including retirement-plan-related adjustments, were announced in October. To avoid confusion, the eight provisions released today were not included in the October announcements, due to the anticipated impact of extender legislation.
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IR-2010-125, Dec. 17, 2010
WASHINGTON — The Internal Revenue Service today announced availability of the fall 2010 issue of the Statistics of Income Bulletin, which features data on 142.5 million individual income tax returns filed for tax year 2008 with adjusted gross income (AGI) totaling $8.3 trillion.
The Statistics of Income (SOI) Division of the IRS produces the SOI Bulletin on a quarterly basis. Articles included in the publication focus on key segments of the most recent data available from various tax and information returns filed by U.S. taxpayers.
The fall issue includes two additional articles: One features an analysis of partnership returns for tax year 2008. The other features an analysis of information returns of nonprofit charitable organizations filed for tax year 2007.
Prior SOI Bulletins can be found on the Tax Statistic page of this website. Historical Tables and Appendix of the Bulletin can also be found there.
The Statistics of Income Bulletin is available for download at IRS.gov/taxstats.  Printed copies of the Statistics of Income Bulletin are available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954.  The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).
For more information about these data, write to the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608.
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IR-2010-124, Dec. 17, 2010
WASHINGTON ― The Internal Revenue Service today released instructions to help employers implement the 2011 cut in payroll taxes, along with new income-tax withholding tables that employers will use during 2011.
Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee’s future Social Security benefits.
The new law also maintains the income-tax rates that have been in effect in recent years.
Employers should start using the new withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011 but not later than Jan. 31, 2011. Notice 1036PDF, released today, contains the percentage method income tax withholding tables, the lower Social Security withholding rate, and related information that most employers need to implement these changes. Publication 15, (Circular E), Employer’s Tax Guide, containing the extensive wage bracket tables that some employers use, will be available on IRS.gov in a few days.
The IRS recognizes that the late enactment of these changes makes it difficult for many employers to quickly update their withholding systems. For that reason, the agency asks employers to adjust their payroll systems as soon as possible, but not later than Jan. 31, 2011.
For any Social Security tax over withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2011.
Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as filling out a new W-4 withholding form.
As always, however, the IRS urges workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms. Publication 919, How Do I Adjust My Tax Withholding?, provides more information to workers on making changes to their tax withholding.
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