Unraveling the IRS Data Book for a Fun and Informative Fiscal Adventure!
Hey there, tax enthusiasts! Gather ’round, because the IRS just dropped their fiscal year 2022 Data Book, and it’s a page-turner! So, grab your favorite calculator, and let’s dive into the numbers, shall we?
The Impact of Resource Constraints
In the past, the IRS has faced some resource constraints, which made it harder to provide A+ taxpayer service and go after the big fish (you know, those high-income taxpayers, partnerships, and large corporations). But fear not! The IRS has a plan in place to tackle these issues.
Revenue, Refunds, and Record-Breaking Efficiency
Did you know the IRS collected a whopping $4.9 trillion in FY 2022? That’s 96% of all government funding! And the cost of running the IRS? A mere 29 cents for every hundred dollars collected, the lowest cost in the agency’s history. Talk about a bargain!
When it comes to pandemic relief, the IRS issued a total of $50.9 billion in payments. This includes $3.7 billion in Economic Impact Payments and $47.3 billion in Advance Child Tax Credits.
Taxpayer Satisfaction on the Rise
Good news! Taxpayer interactions with the IRS improved in 2022, with satisfaction scores jumping from 75% in 2021 to 78% in 2022. High five, IRS!
Processing Returns like a Well-Oiled Machine
The IRS processed over 262.8 million federal tax returns in FY 2022, with a jaw-dropping 94% of individual returns being e-filed. How’s that for going green?
Helping Taxpayers Every Step of the Way
In FY 2022, the IRS assisted over 71.3 million taxpayers through various channels and provided self-assistance through 1.1 billion visits to IRS.gov. They even issued 6.1 million Identity Protection PINs and prepared over 2.2 million returns through their volunteer programs.
Focusing on the Big Fish
The IRS is all about fairness, and they’re determined to catch high-income and high-wealth individuals, complex partnerships, and large corporations that aren’t paying their fair share. So, if you’re making less than $400,000, rest easy—no plans to increase audit rates for you!
The Nitty-Gritty on Audit Rates
Just a heads up: the audit rates for higher-income taxpayers presented in the 2022 Data Book are a “snapshot” and may increase over time as new audits open and close. But don’t worry, the IRS is on it, closing 708,309 tax return audits in FY 2022, resulting in nearly $30.2 billion in recommended additional tax.
The 2022 Data Book is a treasure trove of IRS activity, covering everything from revenue and refunds to audits and personnel. So, if you’re looking to impress your friends with your knowledge of all things tax-related, this is your go-to resource. Happy tax season, everyone!
***Disclaimer: This communication is not intended as tax advice, and no tax accountant -client relationship results**