Thursday, April 21, 2011

IRS Publication Analyzes Latest Business Return Data

An IRS publication titled “Business Nationwide Analysis” (Pub 4425), carries valuable filing information about businesses for IRS processing year 2009. Among other facts, it shows not only how many returns were e-filed but also the percentage that were filled out by a preparer, how many used a calendar versus fiscal year, and when most returns were filed.

Form 1120, U.S. Corporation Income Tax Return

... Slightly more than 2 million returns were filed, of which 22% were e-filed. IRS projects that the percentage will grow gradually, e.g., to 26% in 2010, 31% in 2011, and 34% in 2012.

... 45% of Form 1120 taxpayers were enrolled in EFTPS (Electronic Federal Tax Payment System).

... Payment method used was: 72% paper only, 22% electronic only, and 6% paper and electronic.

... 86% of the returns were filled out by a preparer.

... Peak monthly filing volume was in March, and the second heaviest month was September.

... 68% of all Form 1120s filed were calendar year returns, and the 32% balance were fiscal year returns.

... Larger corporations tended to e-file the most. Of those with $10 to $50 million in assets, 57% were e-filers; of those with $50 million or more in assets, 88% e-filed. By contrast, only 19% of corporations with under $250,000 in assets e-filed, and for those with $250,000 to $1 million, 23% e-filed.

Form 1120-S, U.S. Income Tax Return for an S Corporation

... Of the approximately 4.3 million returns filed, 30% were e-filed. IRS projects that the percentage will grow gradually, e.g., to 37% in 2011, and 40% in 2012.

... 45% of Form 1120-S taxpayers were enrolled in EFTPS.

... 92% of the returns were filled out by a preparer.

... Peak monthly e-filing volume was in March, and the second heaviest month was September.

... 98% of all Form 1120-S returns filed were calendar year returns, and the 2% balance were fiscal year returns.

... Larger S corporations tended to e-file most. Of those with $10 or more in assets, 63% were e-filers; of those with $2 to $10 million in assets, 32% e-filed. By contrast, only 29% of S corporations with under $200,000 in assets e-filed.

Form 1065, U.S. Return of Partnership Income

... Of the approximately 2.3 million returns filed, 29% were e-filed. IRS projects that the percentage will grow gradually, e.g., to 32% in 2011, and 34% in 2012.

... Only 14% of Form 1065 filers were enrolled in EFTPS.

... 99% used the paper method to pay.

... 88% of the returns were filled out by a preparer.

... Peak monthly filing volume was April, and the second heaviest month was September.

... 99% of all Form 1065s filed were calendar year returns, and only 1% were fiscal year returns.

... 56% of entities filing Form 1065 were established in 2004 or an earlier year.

... 56% of filers were entities with one or two partners, 17% three partners, 9% four partners, and 18% five or more partners.

... 45% of 1065 returns represent real estate related activities.

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