| OCR Text |
Show IRS getting faster Improved processing of individual in-dividual tax returns in 1990 made it possible for the Internal Revenue Service to cut almost in half interest payments on refunds for returns that could not be processed within 45 days of the filing deadline. The IRS said it paid interest of $4.7 million in 1990, compared to $8.2 million in 1989, a 43 percent decrease. Tlie total number of refund re-fund returns filed in 1990 increased from 70 million last year to 72 million this year, out the numoer or interest-bearing refunds decreased almost 40 percent, from 741,000 to 452,000. In general, if the IRS takes more than 45 days to process a return filed fil-ed on time, it must pay interest on the refund the taxpayer receives. The current interest rate the IRS must pay is 10 percent. According to the IRS, about 70 percent of taxpayers receive refunds. The average refund in 1990 is $882. About 80 percent of returns filed by taxpayers who received the automatic four-month extension to file are refund returns. This year five million taxpayers received an automatic extension to file until August. To receive the extension, ex-tension, taxpayers had to file Form 4868 and pay any tax due by the April 1 6 deadline. |
