Tax season slumped in its initial period as the total number returns filed for the week ended February 3 plunged by 24.3 percent compared to the week ended February 5 a year ago. Numbers dropped for self-prepared returns by 20.8 percent received but were down 29.2 percent for those filed by tax professionals.Neither Intuit nor Liberty Tax, which discussed filing trends in recent press releases, pointed to specific causes for the decline. However, one possible influence is a federal law prohibiting the Internal Revenue Service from releasing refunds for those claiming the Earned Income Tax Credit or the Additional Child Tax Credit until February 15. People claiming those credits typically file early in the season.
That may be why the average refund fell to $2,050 for the season to date, a decline of 40 percent from $3,450 in last year's corresponding period.
The results led Intuit, maker of the TurboTax consumer tax package, to lower its estimates for its financial results for the second quarter ended January 31. However, the software company expects the revenue to shift to the third quarter.
The IRS reported there were 26,670,000 returns filed through the most recently ended period, compared to 20,181,000 a year ago. Tax professionals submitted 11,010,000 returns electronically, down from 7,796,000. There were 14,646,000 self-prepared returns e-filed through February 3, off 20.7 11,611,000 from a year earlier.