#1: The No-Refund State
In 2004, California taxpayers received nearly $27 billion in refund checks from the Internal Revenue Service. In which state did individual refunds total the least?
Alaska
Hawaii
Iowa
North Dakota
Answer: D. North Dakota claimed only $368 million in refund checks in 2004 and ranked 50 out of 50 states in individual refunds. Alaska ranked 47th, Hawaii ranked 41st, and Iowa ranked 30th.
#2: Tax Time
The Internal Revenue Service (IRS) estimates it will take a taxpayer about how long to do his or her taxes (completion of a 1040 and four supplementary schedules)?
30 minutes
2 hours
36 hours
72 hours
Answer: C. That estimate is up from five years ago, when the IRS estimated it would take about 30 hours to complete your tax paperwork.
#3: Most irritating?
A recent survey found taxpayers were most irritated by which of the following?
How government actually spends tax dollars
The excessive documentation that goes with filing
Understanding IRS forms
Amount of time it takes to get a refund
Answer: A. 38% of those surveyed suggested that government waste is the most frustrating of all. A close second was the need for excessive documentation when filing.
#4: Average Joe
What was the average individual 2004 federal tax refund, approximately?
$150
$800
$2,100
$3,900
Answer: C. About 75% of filers received a refund. So they let the government use $203 billion interest-free money during the year. At a 5% return, they gave up $10 billion in interest earnings. Hmmm. Maybe folly is the third sure thing in life.
#5: Botany ... Why not?
The American Yew is a shrub commonly found on the grounds of federal buildings in Washington, D.C. What is the ironic botanical name for this plant?
Deductus
Taxus
Refundus
Auditus
Answer: B. There’s just nothing else we can add to this fact. The answer says it all!
#6: Filling In
In 2004, which was the most common method used by individuals to complete their tax form(s)?
Computer-generated
Hand-written
Type-written
Audio/Video recording
Answer: A. A whopping 86.9% of forms were generated by computer in 2004. 12.7% chose to impress the IRS with their handwriting. Typewriters are practically non-existent, while audio/video recordings are something we made up. These are tax filings, not American Idol auditions.
#7: Commander in Cheap
Most tax forms ask if the filer wants to contribute $1.00 to a Presidential Campaign Fund. Out of 129 million filers in 2004, approximately how many agreed to the dollar donation?
1,000
1,000,000
12,000,000
65,000,000
Answer: C. Over 12 million filers (9.3%) donated to the fund in 2004.
#8: The Call of the Filed
In 2000 the IRS received nearly 80 million calls on their toll-free ‘help-line.’ Approximately how many of those calls went unanswered by the Internal Revenue Service?
1,000,000
5,000,000
10,000,000
26,000,000
Answer: D. Though they admit it, they aren’t proud of it. The IRS failed to answer more than a third of all help line calls in 2000.
#9: They Taxed That?
History has shown that governing bodies will tax just about anything. Which of the following was never taxed, at least as far as we know?
Beards/Facial hair
Socks/Stockings with holes
Bachelors
Closets
Answer: B. In 1698, Peter the Great taxed his Russian subjects for having beards. The state of Missouri levied a tax on bachelors in 1820. Prior to the American Revolution, Great Britain taxed American homeowners by the room. Closets were considered rooms, so many homes of that era were built without them.
#10: Millionaires
In 1998 the Internal Revenue Service tallied taxpayers with estimated net worth in excess of $1,000,000. According to their study, how many millionaires were there in the U.S.?
6,000
107,000
1,585,000
2,743,000
Answer: D. This represented slightly over 1% of the American population in 1998. Which state has the highest concentration of millionaires? Connecticut, with nearly double the national average (1.98%).
