Accounting News

Friday, August 24, 2007
8 Million Wasted Tax Filings

Treasury Inspector General for Tax Administration has released a report that between 2003 and 2006 US taxpayers filed eight million unnecessary tax returns. The reporst describes an unnecessary tax return as one from people who do not meet the filing requirements but still file Federal income tax returns. The intent is to either obtain a refund of taxes already paid or because they do not understand the law.

The report estimates that it took taxpayers an average of $390 million and 75 million hours per year preparing and filing these unnecessary tax returns. The IRS spent an average of $11 million to process the unnecessary tax returns filed each year.

Read the full report.