Daily Tax Update - April 28, 2005

IRS Says Series of Records Set in 2005 Filing Season:
Today, the IRS announced that the 2005 filing season set a series of records, including the electronic filing of 66 million tax returns. The IRS stated, "The jump in electronic filing reflected a big upswing in the use of a variety of electronic services. The IRS saw new records for Free File and other e-file categories along with major increases in the use of IRS.gov and ‘Where's My Refund.’" IRS Commissioner Mark W. Everson remarked, "The IRS saw a strong, smooth filing season across the board. The filing season results confirm what we've said all along.  For the first time, more than half of all taxpayers filed electronically. Paper filers are now in the minority."

Through April 20, 2005, the IRS announced that it had received:

  • 66 million returns through "IRS e-file" - up almost 11 percent from the same time last year.
  • 5.01 million "Free File" returns - a 46.2 percent increase from the same period last year (3.43 million returns).
  • 16.7 million returns filed by taxpayers from a home computer - up 17 percent from the same time last year and  2 million more than for all of 2004.
  • 46 million returns from tax professionals, up more than 10 percent from the same period last year.

TAX BILLS INTRODUCED APRIL 27:

  • H.R. 1872 sponsored by Rep. Sam Johnson (R-TX) would provide tax incentives for the purchase of qualified health insurance and for other purposes.
  • H.R. 1879 sponsored by Rep. Dave Camp (R-MI) would modify the unrelated business taxable income rules.
  • H.R. 1898 sponsored by Rep. Gary Miller (R-CA) would repeal the excise tax on telephone and other communications services.
  • H.R. 1929 sponsored by Rep. Ron Lewis (R-KY) would update the optional methods for computing net earnings from self-employment.
  • H.R. 1942 sponsored by Rep. Clay Shaw (R-FL) would impose penalties for the failure of 527 organizations to comply with disclosure requirements.
  • S. 926 sponsored by Sen. James Inhofe (R-OK) would provide that the credit for producing fuel from a nonconventional source shall apply to gas produced onshore from a formation more than 15,000 feet deep.
  • S. 928 sponsored by Sen. Blanche Lincoln (D-AR) would provide for the immediate and permanent repeal of the estate tax on family-owned businesses and farms and for other purposes.