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 return-free filing and how would it work? Q.What is return-free filing and how would it work? A.If an income tax system were simple enough, the government could withhold taxes owed and do its own accounting at the end of the year without much help from taxpayers. Read more about What is return-free filing and how would it work?
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?