Could the United States adopt a prepopulated tax return system? Q.Could the United States adopt a prepopulated tax return system? A.The IRS could prepopulate tax returns for many taxpayers but at some risk to taxpayers (those whose refunds would be delayed) and to the IRS (if noncompliance rises). Read more about Could the United States adopt a prepopulated tax return system?
What is Direct File? Q.What is Direct File? A.Like the Free File program, a direct file program would provide taxpayers with access to free software that would prepare and electronically submit their returns to the IRS. But, unlike the Free File program that operates through private companies, a direct file program would be developed and run by the IRS. Read more about What is Direct File?
What is the audit rate? Q.What is the audit rate? A.The audit rate is the percent of tax returns filed for a tax year that are ultimately examined by the IRS. About 153.9 million individual tax returns were filed based on 2018 income, but only about 520,000 of those returns were audited—an overall audit rate of 0.3 percent. Audit rates are generally highest for high-income taxpayers, taxpayers with business income, large corporations, and earned income tax credit claimants. Read more about What is the audit rate?