Science suggests that moving tax day to March would increase the number of people who file taxes. A recent report released by the IRS showed that 25 percent of those who filed tax returns submitted them between April 1st and April 22nd. However, almost 10 percent of those who filed taxes, submitted them after the deadline.
The IRS estimates the average time it should take to file taxes to be 9 hours. It will also cost an average of $120 to file them. While this may seem like an overwhelming amount of work, the average tax return is $2,860 according to the Scientific American.
So, why do people still submit their taxes late? If the nine hours of work and $120 payment lead to almost $3000, what is the delay? Researchers attribute this to peoples busy schedules and the extensive process required to submit taxes. Also, laziness may have a factor.
Scientific America teamed up with Kiva U.S. to determine what influence deadlines truly have on the amount of people who submit something. Kiva offers crowdfunded loans to small businesses throughout the United States. The loans are interest free, but the application process is lengthy.
Kiva requires applicants to fill out eight pages worth of information including facts about revenue, their businesses social media handles, and several other time consuming tasks.
An earlier deadline to prompt citizens to file their tax returns
Without a deadline, the applications came in at a much slower rate. However, when they implemented a deadline, they saw 24 percent more applicants.
Deadlines are stressful until the day they pass. Once they end, the required information is no longer valid and those who completed everything on time are in the clear. When something doesn’t have a deadline, chances are, people aren’t going to jump on it to immediately submit it.
Therefore, moving tax day to March could lower the amount of people turning in their taxes late. It may cause more stress to meet an earlier deadline, but it also means the entire process will end earlier.
Most people have everything to file their taxes by February, but if they aren’t due until April, why rush? Filing taxes often results in a substantial amount of money and moving Tax Day to March could mean more money for Americans.