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ROBERT D. FLACH, LLC

FLACH'S TAX FACTS

ROBERT D. FLACH TAX PLANNING INSTITUTE
TAX HISTORY
SPEAKING OF TAXES
ROBERT D. FLACH, LLC HOMEPAGE

The federal income tax code is currently 54,000 pages long.  The total number of pages has doubled since 1984.
 
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The Earned Income Credit (EIC) is the largest single federal welfare program on the books!  At close to $30 Billion per year, it is 2 1/2 times the amount of federal payments for Aid to Families with Dependent Childred.
 
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According to a report by the General Accounting Office (GAO), the Internal Revenue Service processed about 131 million 2001 income tax returns, resulting in about 99 million refunds, during the 2002 tax filing season.  98% of the refunds were mailed out in under 40 days, a slight improvement over the 2001 filing season.
 
The GAO reports that George W's tax rebate checks caused errors on more than 8 million tax returns.  This represents 57% of all returns with errors.  Surprisingly, a majority of the errors involved taxpayers failing to claim the correct amount of "rate reduction credit" to which they were entitled, rather than claiming a credit when they had already received a rebate check.
 
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For the year 2000 -
 
* The top-earning 25% of American taxpayers, consisting of 32 million returns reporting Adjusted Gross Income (AGI) of more than $55,225.00, paid 84% of the total individual income tax collected - up from 77% for 1990.
 
* The top 10% (12.8 million returns with AGI above $92,114.00) paid 67.3% of the total collected - up from 55.4% for 1990.
 
* The top 5% (6.4 million returns with AGI above $128,336.00) paid 56.5% of the total collected - up from 43.6% for 1990.
 
* The top 1% (1.3 million returns with AGI above $313,469.00) paid 37.4% of the total collected - up from 25.1% for 1990 and 19.1% for 1980.
 
* The top 1% of taxpayers paid an average tax rate (tax payment divided by AGI) of 27.4% - up from 23.2% for 1990.
 
* The bottom 50% (64.1 million returns with AGI under $27,682.00) paid an average tax rate of 4.6% - down from 5% for 1990.
 
From a Special Report issued by the TAX FOUNDATION (www.taxfoundation.org).
 
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The Alternative Minimum Tax (AMT) was created to make sure that high-income taxpayers did not use tax shelters and preferences, such as accelerated depreciation and the oil depletion allowance, to reduce their federal tax liability to "0".
 
Currently, only 5% of the revenue raised by the AMT is from "anti-sheltering" provisions.  In 2010 only 1% of AMT revenue will be from "anti-sheltering" provisions.  
 
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The approved Private Delivery Services, which, in addition to the US Postal Office, can be used to send federal tax returns to the IRS are:
 
Airborne Express: 
  • Overnight Air Express Service
  • Next Afternoon Service
  • Second Day Service

DHL Worldwide Express:

  • DHL "Same Day" Service
  • DHL USA Overnight

Federal Express:

  • FedEx Priority Overnight
  • FedEx Standard Overnight
  • FedEx 2Day
  • FedEx International Priority
  • FedEx International First

United Parcel Service:

  • UPS Next Day Air
  • UPS Next Day Air Saver
  • UPS 2nd Day Air
  • UPS 2nd Day Air A.M.
  • UPS Worldwide Express Plus
  • UPS Worldwide Express

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In 1954, the tax code, regulations and related materials consisted of 14,000 pages in 9 volumes.  For 2002 it is 52,310 pages in 25 volumes, and that does not include the Job Creation and Workers Assistance Act of 2002.
 
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The number of tax returns reporting income of more than $100,000.00 has grown 342% since 1991.
 

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