Data and tax lovers: IRS 2016 stats
The IRS has just released its Fiscal Year 2016 (Oct 2015 to Sept 2016) Data book. For those of you who love data – what can you read behind these facts (hint: less audits)? At the end of the post, I’ll give you some stats from 100 years ago about US tax rates which you may find surprising… or…annoying.
- Processed more than 244 million tax returns and other forms
- Collected more than $3.3 trillion
- Issued more than $426 billion in tax refunds
- Audited just over 1 million tax returns of individuals (down almost 16 percent from FY 2015). This is less than ½ of 1% of all returns filed
- Overall, in Fiscal Year (FY) 2016, the IRS collected, net of credit transfers, almost $37.4 billion in unpaid assessments on returns filed with additional tax due.
- The IRS assessed close to $12.5 billion in additional taxes for returns not filed timely and collected almost $2.3 billion with delinquent returns.
- The IRS assessed $27.3 billion in civil penalties (Of this amount, approximately $12.1 billion was assessed in civil penalties on individual and estate and trust income tax returns)
- Overall Enforcement Actions Decline in 2016
- IRS levies were down 40%
- Tax liens filed were down 9%
And finally, the Data Book notes: This year marks 100 years since the Revenue Act of 1916 became law.
As promised, here are some further eye catching stats from 100 years ago:
- In the calendar year ended December 31, 1916, personal returns in the number of 437,036 were filed, showing an aggregate net income of $6,298,577,620, income tax (normal and additional) amounting to $173,386,694, an average tax of $396.73 and an average tax rate of 2.75% of the aggregate net income. Here is the full report from 1916. Who filed more returns – doctors or stock brokers?
- When the income tax was fully established in 1913, the tax rate was 1%. Few paid income tax to the IRS, as it was required only if you made $3,000 or more per year. That year only 1 out of 271 Americans had to pay income tax
- When the IRS 1040 tax form was first introduced in 1914, it had only 3 pages including the instructions. Today, the 1040 has 101 pages of instructions alone.