As recently reported, the IRS has issued its annual data book, which provides statistical data on its 2009 fiscal year activities. Here are three observations from the data book:
1. Passthrough entities are growing in popularity. The number of partnership tax returns (Form 1065) increased by 7.8% and the number of S corporation returns (Form 1120S) grew by 1.3%. However, the number of C and other corporate returns dropped by nearly 2.5%.
2. Most 2008 math errors on individual returns were attributable to the recovery rebate credit. The IRS sent out nearly 13.5 million math error notices relating to 2008 individual tax returns. Close to 75% of the math error notices were attributable to the section 6428 recovery rebate credit which provided a refundable recovery rebate credit to an individual (not a nonresident individual, an individual who could be a dependent or an estate or trust).
3. Failure to pay was the top penalty assessed. For individuals, nearly 55% of the 26.387 million civil penalties were for failure to pay. For businesses, 55.8% of the 970,098 civil penalty assessments were for failure to pay or underpayment of estimated taxes.
There is plenty of other useful data contained within the 2009 IRS Data Book. The link to access the report is below.
2009 Data Book