Taxpayers Aided By Online Tax Resources

Reports from several IRS attorneys indicate that the Internal Revenue Service recently released tax filing statistics for 2012 (the results are through March 16th of this year). The IRS tax attorneys say the report estimates that 77.6 million individual taxpayers have already filed their returns. According to these same IRS lawyers, the 2012 returns thus far demonstrate a 4.3% increase over 2011 with respect to the number of people who have filed their returns by mid-March. The report also shows an overall increase in both the number of individual returns filed and the overall number of returns which have been filed electronically.

IRS tax lawyers say that although 77.6 million individual taxpayers may have already filed their returns, the IRS has projected a total of 145.4 million individual tax returns yet to be filed in 2012, a 1.5% increase over 2011. IRS attorneys point out that this leaves 67.8 million remaining tax returns to be filed before the April 17th deadline. While some of these individuals may end-up requesting an extension, many of them will rush to e-file their unfiled returns within the first two weeks of April, as evidenced by an increase in tax software purchases.

According to the site manager at www.tax-compare.com, Mr. Wong, “Last year [they] saw the number of signups for online tax software double in the first two weeks of April from the last two weeks of March.” Mr. Wong goes on to say that “There is definitely a push for people to finish and submit their tax returns by the deadline and, for those that are filing for an extension, to simply get the process started. [Tax-Compare.com] expect[s] this year’s numbers to reflect the IRS’ growth projections.”

IRS attorneys maintain that the IRS is predicting that 138 million unfiled tax returns will be e-filed this year (a 4.3% increase from last year) and that only 101.3 million paper returns will be submitted (down 3.1% from last year and continuing to decrease). These same IRS tax lawyers note that the IRS also predicts a 1.2% annual growth rate for individual tax returns, resulting in 156.4 million individual tax returns filed by tax calendar year 2018.

As more people are starting to use online tax software to file their back tax returns, IRS tax attorneys say that such software is becoming an indispensable tool for the majority of taxpayers. Mr. Wong at Tax-Compare.com claims, and IRS attorneys agree, that “It’s important to understand the differences among the top services and to choose a product that offers the guidance, guarantees, and protections that you’ll need when preparing your taxes yourself.”

 

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