IR-2008-47, March 20, 2008
WASHINGTON ¡ª The continued growth of Free obÌåÓý shows taxpayers are taking advantage of the program¡¯s benefits, which include free electronic return preparation and filing of tax returns, as well as quicker refunds with direct deposit.
The number of tax returns filed via Free obÌåÓý as of the end of February has jumped more than 12 percent compared with the same period last year, the Internal Revenue Service said.
¡°Free obÌåÓý provides an opportunity for taxpayers to prepare and file their tax returns electronically for free,¡± said Acting IRS Commissioner Linda E. Stiff. ¡°Free obÌåÓý is also available to individuals who normally do not file a tax return but must do so this year in order to qualify for the economic stimulus payment.¡±
Free obÌåÓý is run by the IRS and the Free obÌåÓý Alliance, LLC, a private-sector consortium of tax software companies. Over 22 million taxpayers have used Free obÌåÓý since its inception. Their partnership is intended to provide taxpayers earning $54,000 or less with a free, safe and quick way to prepare and file their taxes. Free obÌåÓý is available to 70 percent of taxpayers.
Use of Free obÌåÓý, like electronic filing in general, continues to see steady growth. Nearly 3.0 million taxpayers used Free obÌåÓý as of the end of February, compared with 2.6 million who used it during the same period last year.
Customer satisfaction with Free obÌåÓý also remains high. Taxpayers find the program to be easy and convenient to use. Individuals who e-file using the Free obÌåÓý program can get their refunds in as little as 10 days with direct deposit. Also Free obÌåÓý has been improved in the last few years to ensure taxpayers aren't subjected to marketing and advertising messages while preparing their returns.
The IRS works with Free obÌåÓý partners to enhance the Free obÌåÓý program when new tax laws are enacted. For instance, changes were made to Free obÌåÓý to accommodate recently enacted legislation creating the economic stimulus payment and expanding the exclusion for debt forgiveness, which is targeted to taxpayers who have lost their homes because of difficulty with their mortgage payments.
IRS Free obÌåÓý also is now available to people who normally do not file a tax return but must do so this year to receive their 2008 economic stimulus payment. People who have no legal requirement to file other than to receive their payments should take care to use only those companies listed on the Free obÌåÓý - Economic Stimulus Payment page on this Web site.
While not all Free obÌåÓý offerings serve all taxpayers, the Free obÌåÓý assistor can be used to guide taxpayers to the Free obÌåÓý offering that is right for them.
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2008 FILING SEASON STATISTICS |
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Cumulative through the weeks ending 3/16/07 and 3/14/08 |
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Individual Income Tax Returns |
2007 |
2008 |
% Change |
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Total Receipts |
67,705,000 |
71,028,000 |
4.9% |
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Total Processed |
63,799,000 |
66,656,000 |
4.5% |
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E-filing Receipts: |
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TOTAL |
49,401,000 |
53,359,000 |
8.0% |
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Tax Professionals |
35,105,000 |
36,771,000 |
4.7% |
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Self-prepared |
14,296,000 |
16,588,000 |
16.0% |
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Web Usage: |
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Visits to IRS.gov |
88,834,000 |
100,660,000 |
13.3% |
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Total Refunds: |
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|
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Number |
57,434,000 |
59,199,000 |
3.1% |
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Amount |
$141.680 |
Billion |
$149.621 |
Billion |
5.6% |
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Average refund |
$2,467 |
$2,527 |
2.5% |
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Direct Deposit Refunds: |
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Number |
42,057,000 |
45,023,000 |
7.1% |
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Amount |
$117.429 |
Billion |
$126.127 |
Billion |
7.4% |
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Average refund |
$2,792 |
$2,801 |
0.3% |
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