Business tax filers are catching up with individual taxpayers when it comes to electronically submitting returns.
The Internal Revenue Service estimates that in 2015 around 77 percent of all corporate and partnership returns were filed electronically, based on filing data as of Sept. 20. That's 625,000 more such business filings than last year, or percentage-wise, a 9 percent increase.
On the individual tax side, slightly more that 86 percent of U.S. taxpayers had e-filed their 1040s through Sept. 25. That's a 2.2 percent increase over the same period in 2014. And remember that we have a few more e-filing days to meet the Oct. 15 extension deadline.
While the number of electronic business filers still lags individual returns, the IRS notes that at least it is following the same trend. All e-filings, business and personal, are increasing year-to-year.
And the 77 percent corporate and partnership e-filing figure is good enough to earn it this week's By the Numbers honor.
E-filing already required: Most large corporations and partnerships already must, per IRS rules, e-file their annual returns.
Large and mid-size corporations, generally those with $10 million or more in total assets, also are required to electronically file their Forms 1120 or 1120S.
And mandatory e-filing also applies to partnerships with more than 100 partners.
That's one of the reasons that, as the IRS table below shows, e-filing is becoming more common with all types of business filers.
Still, since electronic filing generally is easier for the businesses as well as the IRS, many are turning to it on their own.
Expanded e-filing partnerships: Large partnerships are largely responsible for the e-filing increase.
Although the actual number of large partnership e-filings is only 142,237 that figure accounted for an almost 16 percent increase from the same time last year. That's the largest percentage growth in all business filing sectors.
The added benefit of more partnership e-filing is that when the computer algorithm that can quickly catch some partnership tax evasion schemes is finalized, the IRS will have a larger group upon with to test it.
You also might find these items of interest:
- Golly GE-e, that's one enormous e-filing
- Five small business tax tips for Cinco de Mayo
- Tax tips for the self-employed small business owner
You can find more tax news and tips at the Don't Mess With Taxes home page.
Offshore New
Great.
People should be reminded that federal taxes are usually what be are concerned about when thinking about tax refunds. Also note that the federal tax return will typically be much higher than a state income tax return.