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2014 Returns Up; Tax Pro Volume Down

IRSThe delayed tax filing season has produced an increase in the number of returns submitted to the Internal Revenue Service. The IRS has reported the overall number of returns processed up by 3.8 percent. But that is on the strength of self-prepared returns as the number submitted by tax professionals is off by 5.6 percent.

The IRS report covered filings through February 7 this year, compared to the totals in the same categories for the season through February 8 in 2013. Returns processed this year through February 7 stood at 18.8 million, a 43.-2 percent rise from 26.9 million in the last year's tax season.

And the trend has also produced a high volume in money moving into taxpayers pockets and bank accounts. The total number of refunds for the 2014 period was $64.5 billion, up 24 percent from $52.1 billion.That was an extra $12.5 billion pumped into the economy in a short period. The average refund this year was $3,317, compared to $3,170 last year, a 4.6-percent rise.

And the extra volume is apparently taking a toll on the cash holdings of some financial institutions. At the Federal Credit Union in Madison, Ind., a sign informed customers that because of the volume of tax refund checks being cashed, each would be limited to a $500 withdrawal.

The shift to DIY preparation continued with 13.4 million self-prepared returns filed this year, an increase of 14.7 percent over the same period in 2013. However, there were 12.7 million returns from tax professionals, compared to 13.5 million last year.

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