Contact: Gigi Thompson Jarvis
202.822.6232, x119
gjarvis@naea.org

click here for a PDF version

For Immediate Release

Size of Average Tax Refund Increasing
IRS Reports 4.2 Percent Rise

Washington, DC (January 6, 2011) Many taxpayers would be surprised to hear that a qualified tax preparer should prevent them from receiving a big refund. Refunds are good, right? Not necessarily.

"Tax refunds are only good if your goal is to give Uncle Sam a tax-free loan," advises Sherrill Trovato, EA, President-Elect of the National Association of Enrolled Agents (NAEA). "The average refund last year was roughly $3,000. Taxpayers with a refund of that size could instead be seeing an increase of over $100 in their paychecks – which could be a welcome boost in these tight economic times."

The 2010 filing season statistics recently released by the IRS show that the total amount of refunds paid in 2010 was $315.864 billion, a 4.2 percent increase over the 2009 total of $303.069 billion. The percentage of increase for direct deposit refunds was even higher, coming in at 6 percent. While it's doubtful that taxpayers are purposely over-withholding, those outside the tax industry are at a great disadvantage when it comes to forecasting the deductions and credits that will decide their ultimate tax debt.

Licensed tax return preparers are required to complete substantial continuing education during the year to ensure they are up-to-date on the latest revisions to the ever-changing tax code. Enrolled agents (EAs) must complete 72 hours of continuing professional education every three years, and members of NAEA must complete 90 hours. Without the thorough knowledge possessed by a licensed tax professional who has passed competency testing on individual and business tax preparation, the average taxpayer is at a decided disadvantage when it comes to determining the correct amount to be withheld for taxes from his or her paycheck.
Although many taxpayers don't turn to a licensed tax professional unless they're in trouble with the IRS, those who hire an enrolled agent for annual tax preparation usually find that the money saved by receiving and acting on cutting-edge tax advice more than pays the preparer's fee. To locate an enrolled agent in your area, go to www.naea.org and click on "Find an Enrolled Agent."

About Enrolled Agents
Enrolled agents are tax professionals licensed by the US Department of the Treasury to represent taxpayers before all administrative levels of the IRS. While attorneys and certified public accountants are also licensed, only enrolled agents specialize exclusively in taxes. Enrolled agents are required to pass competency testing on individual and business returns and on representing taxpayers before the IRS for audits, appeals and collections. They also complete many hours of continuing education and must abide by a Code of Ethics. The National Association of Enrolled Agents is the professional association that represents their interest to government and the public, and provides education and networking opportunities.