Every spring, tax season arrives without fail, but have you noticed how taxpayer behavior is quietly evolving? On March 6, 2020, the Internal Revenue Service (IRS) released revealing data that offers a fascinating window into subtle shifts in tax filing patterns amid the digital transformation of financial services.
Tax Filing Overview
IRS statistics show remarkably stable filing volumes as of March 6, 2020. Total returns received stood at 67,998,000 for 2020 compared to 67,721,000 in 2019 - a marginal 0.4% increase. Processed returns saw a slight 0.5% decline from 65,314,000 (2019) to 65,018,000 (2020).
The Digital Filing Revolution
Electronic filing continues to dominate, with 64,806,000 e-filed returns in 2020 - a 0.8% increase from 2019's 64,299,000 . This trend reflects growing taxpayer preference for digital solutions.
Interestingly, while self-prepared filings dropped 1.6% ( 31,430,000 in 2020 vs. 31,942,000 in 2019), professionally prepared returns rose 3.1% to 33,376,000 .
Increased Online Engagement
IRS.gov traffic surged 7.6% to 321,393,000 visits, indicating taxpayers are increasingly seeking digital resources to navigate tax obligations. This suggests more proactive information-seeking behavior among filers.
Refund Patterns
The IRS issued 52,721,000 refunds in 2020 (down 1.4% from 2019), totaling $158.81 billion (1.3% decrease). However, the average refund amount remained stable at $3,012 - a slight increase from 2019's $3,008 .
Direct Deposit Trends
Despite a 5.0% decrease in direct deposit recipients ( 46,870,000 in 2020), the average direct deposit refund grew to $3,129 (from $3,107 in 2019). Total direct deposit amounts fell 4.3% to $146.65 billion .
Conclusion
The 2020 tax season reveals a landscape in transition. While overall filing volumes remained steady, digital adoption accelerated significantly. These changes reflect an evolving relationship between taxpayers and the IRS, with technology enabling more efficient processes that protect taxpayer rights while simplifying compliance.