Wednesday, April 16, 2014
FiveThirtyEight: The Fluctuating Math Errors in Americans’ Tax Returns:
Seeing as Tuesday night is the deadline for filing tax returns, and seeing as data is FiveThirtyEight’s raison d’être, I was excited to find a set of statistics titled “Math Errors on Individual Income Tax Returns, by Type of Error.” Even better, that data has been published for tax years from 2001 to 2012.
It’s unsurprising that some Americans make mistakes on their taxes; the 1040 form (the primary tax form) has 77 line items, as well as a 189-page appendix of instructions. But Internal Revenue Service data shows that math mistakes — potentially an indication of how confusing that form is — have changed a lot over time.
Why does the number of errors fluctuate so much? ...
Moving from facts to theory, the decrease in errors since 2009 might also partly be explained by the increase in use of TaxACT, TaxSlayer, TurboTax and other online filing services. That assumes that such providers are less prone to mistakes than alternative solutions, such as Americans calculating their own taxes or using traditional accountants. The National Taxpayers Union has claimed that is not a safe assumption.
(Hat Tip: David Herzig.)