In a report issued last week the National Taxpayer Advocate, Nina Olson,
made her mid-year report to congress. This report advises congress on what the Taxpayer Advocate Service (TAS) will be focusing on for the next fiscal year.
The [report] has some interesting statistics about the 2015 filing season including the comment that for those who needed help from the Internal Revenue Service (IRS) “…the filing season was by far the worst in memory.”
Olson also noted that the IRS has a large portion of its budget devoted to and views itself as an enforcement agency despite the fact that 98% of tax revenue is paid on time.
The most interesting section of the report however has to do with Obamacare, or the Affordable Care Act. Olson reports that 2.6 million tax returns were processed with form 8962 which is the form that you use to claim your tax credit. The average credit was $3,000 per return. For those claiming an exemption from Obamacare the total number of returns filing with form 8965 was 10.7 million.
The biggest concern for 2015 was the payment of the individual shared responsibility payments. What most call a penalty, but the Supreme court reclassified as a tax.
In this group 6.6 million taxpayers paid the penalty and the average penalty was $190. However, more than 300,000 taxpayers overpaid the penalty, and of those many shouldn’t have paid the penalty due to their low incomes. The average overpayment of that group was $110, and Olson has recommended a refund to effected taxpayers.
However, as of the date of the report the IRS has not decided if it will issue the refunds.