The Internal Revenue Service on Monday announced the release of the Winter 2006-2007 issue of the Statistics of Income Bulletin. Highlights include articles on individual income taxes, split-interest trusts and tax-exempt organizations.
Preliminary data for tax year 2005 indicated that taxpayers filed 134.5 million US individual income tax returns, an increase of 1.6% from the preliminary estimate of 132.4 million returns filed for tax year 2004. Adjusted gross income (AGI) increased by 8.9% from the previous year to $7.4 trillion for 2005, and taxable income increased 9.5% to $5.1 trillion.
The alternative minimum tax rose 31.6% to $15.9 billion, while total income tax increased 11.8% to $928.3 billion. Other notable changes were: net capital gains, the second largest component of adjusted gross income, rose by 36.7% to $604.4 billion; statutory adjustments to total income increased 10.2%, from $94.5 billion to $104.2 billion; total deductions increased 8.4% to $1,665.6 billion; and total tax credits used to offset income tax liabilities increased 5.7% to $54.3 billion. The total earned income credit, including the refundable portion, increased 6.1% to $43.1 billion for tax year 2005.
For tax year 2004, taxpayers filed 132.2 million returns, of which 89.1 million (or 67.4%) were classified as taxable returns. This represented an increase of 0.2% in the number of taxable returns from tax year 2003. Adjusted gross income (AGI) on these taxable returns rose 9.0% to $6,266 billion, while total income tax showed the first increase in 4 years, rising 11.2%. Also for the first time in 4 years, the average tax rate for taxable returns rose, increasing 0.3 percentage points to 13.3% for 2004. Taxpayers with an AGI of at least $328,049, the top 1% of taxpayers, accounted for 19% of total AGI, representing an increase in income share of 2.2% from the previous year. These taxpayers accounted for 36.9% of the total income tax reported, an increase from 34.3% in 2003.
In filing year 2005, some 124,292 Split-Interest Trust Information Returns (Form 5227) were filed, an increase of 0.8% from filing year 2004. Charitable remainder unitrusts continued to be the most common trust type, increasing by 1.6%, or 1,450 returns, between 2004 and 2005. Charitable lead trust filings increased the most, 9%, to 6,168 in 2005. The number of returns filed for charitable remainder annuity trusts decreased by 4.2% between 2004 and 2005. Total net income reported for charitable remainder trusts (CRTs) increased by 67.4% from 2004 to 2005, primarily due to an exceptionally large increase in the value of capital gains reported in 2005. Total net capital gains reported for CRTs increased by 119.2% from filing year 2004 to filing year 2005.
During calendar years 2004 and 2005, tax-exempt organizations filed an estimated 36,064 Forms 990-T, Exempt Organization Business Income Tax Return, for tax year 2003, ending a 4-year decline in annual Form 990-T filings. After offsetting $8.4 billion of total gross unrelated business income (UBI) with a nearly equal amount of total deductions, the resulting unrelated business taxable income (less deficit) for 2003 was $23.2 million. Positive unrelated business taxable income reported on Form 990-T increased by 20.5% between tax years 2002 and 2003, totaling $780.1 million, and the associated unrelated business income tax (UBIT) rose 13.3%, to $219.9 million. After adjusting UBIT with certain credits and other taxes, the resulting total tax reported on Form 990-T was $220.9 million.
About 3.8% of the 263,353 Internal Revenue Code section 501(c)(3) nonprofit charitable organizations that filed Forms 990/990-EZ, Return of Organization Exempt From Income Tax/Short Form Return of Organization Exempt From Income Tax, also filed Forms 990-T to report UBI. Overall, nonprofit charitable organizations that filed Forms 990/990-EZ reported an aggregate $1,072.2 billion of total revenue for tax year 2003, of which under one-half of 1 percent, or $4.2 billion, was attributable to UBI.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment