1. Late Returns on Transmittals Analysis
Objective:
To analyze CH transmittal detail data to determine the extent of late tax returns.

2. Late Returns on Transmittals Analysis
Result of ballot dealing with the timeliness of tax returns and “unprocessable” returns.
Compliance reviews were finding instances of returns being held for periods of time for various reasons.

3. Late Returns on Transmittals Analysis
Looked at aggregate data only
No individual jurisdictions
Tried to determine the magnitude of the problem

4. Late Returns on Transmittals Analysis
Looked at all original returns submitted to the CH for 2006.
An original return was considered late if:
it was transmitted two months or more after it was required to have been filed; and
no interest was included.

5. Late Returns on Transmittals Analysis
1stQ returns are due by 4/30, and should be on the May transmittal.
1stQ original returns on the June transmittal or after were counted as late.
(It is possible that this overstated late returns slightly due to timing issues.)

6. Late Returns on Transmittals Analysis
On average, approximately six percent of original returns met the definition of “late.”
Some months were much higher

7. Late Returns on Transmittals Analysis
# of returns reviewed:
692,946
# of late returns:
41, 873

8. Late Returns on Transmittals Analysis
Most late returns were transmitted by the next month, but a significant number were five or more years old.

9. Late Returns on Transmittals Analysis
It would appear credit returns may be held longer than tax due returns.
It would appear that most late returns are “billing” returns to other jurisdictions

10. Late Returns on Transmittals Analysis
Clearinghouse jurisdictions can use the CH to evaluate incoming transmittals.
May want to contact jurisdictions which appear to be holding tax returns.