IRS just recently revealed that the Statistics of Income is releasing some of the proposed tax forms and documents they will use to analyze 2010 tax returns. While I was sure that was important when I first saw that, I wasn’t too familiar the SOI and how they work within the IRS.
I was curious, though -what was the significance of this announcement? What do new tax forms mean for us as taxpayers? How can this be helpful for you and with our taxes and finances?
What is the Statistics of Income Division?
First off, what is the Statistics of Income Division of the IRS? Before the announcement I had never heard of them so I had to find out. They are the division takes the data received with tax filings through the years and releases data for the public.
The division includes economists, mathematical statisticians, and IT professional who complete numerous studies, one of which is the Personal Wealth Study. The division combs through the data every 3 years and shares what they’ve gathered.
That’s not the only study that they work on. I checked the IRS’ tax statistics page and found dozens of tax reports, including:
- IRS Compliance with Issuing Refunds
- Estate Taxes
- Gift Taxes
If you’re a fan of numbers, they probably have a study that would pique your interest.
SOI’s Latest Announcement
Once the study is complete, the publication will include three main parts:
- Individual Statistics Branch: This portion will mostly be what interests you the most. It’s focused on analyzing individual tax returns using 1040, 1040A, and 1040EZ.
- Corporation Statistics Branch: As the name suggests, this branch digs into tax forms relating to corporations, such as the 1120 (1120, 1120S, and 1120-F) series.
- Special Studies Branch: For those studies that fall outside of the two above mentioned areas, the SOI has a branch that pores over data such as gift taxes and international tax filers.
If you look at the PDF file included with news announcement, you’ll see in red the proposed data that they SOI will be using for the report. It’s expected the results will be released in 2012 or 2013.
Thoughts on the 2010 Forms and Schedules
Have you ever heard of the Statistics of Income Division before? Did you know about the valuable data and studies they head? What are your thoughts on the proposed forms and schedules for 2010?