Upload
experianus
View
2.717
Download
0
Embed Size (px)
Citation preview
1
EDELMAN BERLAND
Experian Consumer Tax Survey Report
January 2016
2 © Copyright 2016 Daniel J Edelman Inc. Intelligent Engagement
WHO HOW MANY
ACCURACY WHEN HOW
Adults Nationwide (Ages 18+)Who File Tax
Returns
n=1,000 Margin of Error = ± 3.1%
Data Collection Occurred
January 1-5, 2016
Online Survey
RESEARCH OBJECTIVE: To garner media-genic research around consumers’ understanding of tax-related identity
theft and identity protection during tax time
Research Methodology
3 © Copyright 2016 Daniel J Edelman Inc. Intelligent Engagement
• Tax filing, document storage and refunds continue to be increasingly electronic.
• 79% report filing their most recent tax return online, up from 73% in 2011.• 18% scan and save their tax documents electronically, up from 6% in 2011.• More than three quarters of respondents have used EFT for tax refunds.
• Consumer familiarity with tax-related identity theft has risen significantly in recent years and tax-filers are increasingly concerned about being affected.
• 76% are familiar with tax-related identity theft, up from 57% in 2014.• 42% are concerned that someone could access their personal data through their tax
return, up from 35% in 2014.
• Awareness of the IRS-issued PIN continues to grow over time, but most are still unfamiliar with the newer protections available to victims of tax-related identity theft.
• Less than half of tax-filers are aware of the IRS-issued PIN (47%) or victims’ ability to request copies of fraudulent tax returns (30%).
• Still, there is consumer interest in using an IRS-issued PIN to protect their identity during tax season.
Key Findings
Tax Filing & Refunds
5 © Copyright 2016 Daniel J Edelman Inc. Intelligent Engagement
Most prepare their own taxes on their home network
56%
23%
10% 9%1%
49%
23%16%
11%2%
56%
19% 17%6%
1%
56%
18% 17%7% 2%
Tax Return Preparation 2011 2014 2015 2016
39% Online-based tax preparation program13% Tax preparation computer software 4% Without tax preparation software
76%
14%
7% 3%
Self-Preparation Network
(Shown off % prepare their own taxes)
Inside of my home on a secure networkAt work on a secure network
Q5: Who prepared your last tax return? Q6: Which of the following best describes how you prepare your documents prior to submitting your return? [Asked among respondents who prepare their tax returns themselves, n=556]
6 © Copyright 2016 Daniel J Edelman Inc. Intelligent Engagement
Tax filing has become increasingly electronic over the past several years
File m
yself,
electr
onical
ly
Tax sp
eciali
st, ele
ctron
ically
File m
yself,
by mail
Tax sp
ecialis
t, by m
ail
Tax sp
eciali
st, do
n't kn
ow fili
ng meth
od
48%
25% 20% 5% 2%44% 35%
11%5% 5%
46% 35%10%
5% 4%
50%29%
13% 3% 5%
Tax Return Filing Method
2011201420152016
37% of those who
mail their taxes do not send
their returns by certified mail
Q7: How do you file your taxes?Q8: Do you send your tax returns by certified mail? [Asked among respondents who file their own taxes by mail, n=126]
TOTAL ELECTRONIC2011: 73%2014: 79%2015: 81%2016: 79%
2011-16
+6
7 © Copyright 2016 Daniel J Edelman Inc. Intelligent Engagement
43% 48%
6% 3%
38%43%
12% 6%
1%
40% 39%
14% 5%
2%
35% 38%
18% 7%2%
Tax Document Storage
2011 2014 2015 2016
Q9: What do you do with physical copies of your old tax documents?Q11: Have you ever used Electronic Funds Transfer to receive a tax refund?
Americans are also increasingly utilizing electronic document storage and EFT as part of the digital trend
2014 2015 2016
22% 18% 16%
73% 78% 77%
Tax Refunds: Elec-tronic Funds Trans-
fer Usage
Yes No Unsure
-10
+12
2011-16: +4
2014-16:
8 © Copyright 2016 Daniel J Edelman Inc. Intelligent Engagement
Q21: How much of a tax refund, if any, do you expect to receive this year? Please include both your federal and state taxes in your estimation.Q22: How do you plan to use your tax refund this year? [Asked of those who expect to receive a refund, n=797]
20%
15%
21%
26%
11%7%
Expected 2015 Tax Re-fund
None$1-$500$501-$1,000$1,001-$2,000$2,001-$3,000More than $3,000
This year, most consumers expect to receive a tax refund and plan to use it toward their personal savings or paying down credit card debt
Savings fund/investments
Pay off/down credit card debt
Pay off/down personal loan
Personal shopping spree
Pay off/down student loans
Automobile purchase
Home down payment
41%
35%
19%
18%
11%
11%
11%
Anticipated Tax Refund Usage(Shown off % expect a tax refund)
80% EXPECT A 2015 TAX REFUND(83% EXPECTED A 2014 TAX REFUND)
Tax-Related Identity Theft
10 © Copyright 2016 Daniel J Edelman Inc. Intelligent Engagement
Consumers are increasingly aware of tax-related identity theft and have growing concerns about being personally affected
Q13: Prior to this survey, were you familiar with the concept of tax-related identity theft?Q10: To what extent are you concerned that your tax preparer/service is susceptible to losing your information? [Asked among those whose taxes are prepared by someone else, 2014 n=510, 2015 n=435, 2016 n=439] Q12: Prior to this survey, to what extent were you concerned that someone could access your personal data, such as your Social Security number or banking information, through your tax return?
2014 2015 2016
22% 16% 11%
19% 19% 11%
57% 63% 76%
Yes, familiarHeard the termNo, not familiarUnsure
Familiarity with Tax-Related Identity
Theft 2014-16:
+19 FAMILIAR
2014 2015 2016
64% 53% 51%
21% 26% 25%
15% 21% 24%
ConcernedNeutralNot concerned
2014 2015 2016
37% 34% 32%
28% 28% 26%
35% 38% 42%
ConcernedNeutralNot concerned
Concern aboutTax Preparers
Losing Personal Data
(Shown off % use tax preparer)
Concern about Personal Data
Breach Through Tax Return
2014-16:
+7 CONCERNE
D
2014-16:
+9 CONCERNE
D
11 © Copyright 2016 Daniel J Edelman Inc. Intelligent Engagement
Q19: To what extent do you agree or disagree with the following statement: I am concerned about becoming a victim of tax-related identity theft.Q14: Have you or anyone you know ever been a victim of tax-related identity theft?Q15: You mentioned that you were a victim of tax-related identity theft. Which of the following actions did you take after this incident? [Asked of tax-related identity theft victims, n=126] Q16: And, approximately how long did it take for you to receive your tax refund after you were informed that your identity had been stolen? [Asked of tax-related identity theft victims, n=126]
55%are concerned about becoming a victim of tax-related identity
theft
13% have been a victim of tax-related identity
theft
15% know a victim of tax-related identity theft
Filed a police report
Put fraud alert on credit reports
Filed a complaint with FTC
Ordered a credit report
Reported to IRS
Received IRS-issued PIN
59%
58%
38%
36%
30%
30%
Victims of tax-related identity theft most commonly file a police report and put a fraud alert on their credit reports
AVERAGE TIME TO RECEIVE TAX REFUND
AFTER INFORMED OF
IDENTITY THEFT:
6.75 MONTHS
Tax-Related Identity Theft Victims’ Actions Taken(Shown off % victim of tax-related
identity theft)
12 © Copyright 2016 Daniel J Edelman Inc. Intelligent Engagement
There is limited awareness of new protections for victims of tax-related identity theft, even among those who have been personally affected
2014 2015 20167% 5% 8%
54% 50% 45%
39% 45% 47%
Yes NoUnsure
Awareness of IRS-Issued PIN
Q17: Prior to this survey, were you aware of the IRS-issued PIN?Q18. The IRS now allows victims of tax-related identity theft to obtain copies of the fraudulent tax returns that were filed by thieves using the victims’ stolen identification. Prior to this survey, were you aware that victims of tax-related identity theft could request copies of fraudulent tax returns from the IRS?
2014-16:
+8 AWARE
30%
61%
9%
YesNoUnsure
Awareness of Ability to Request Copies of
Fraudulent Tax Returns
60%Tax-Related
Identity Theft Victims
52%Tax-Related
Identity Theft Victims
13 © Copyright 2016 Daniel J Edelman Inc. Intelligent Engagement
Q20: What is the one thing that you will do to try to prevent identity theft during tax season this year? [Asked of those familiar with tax-related identity theft, n=757]
Get an IRS Identity Protection PIN (IP PIN) Check my credit report
File my taxes as soon as possibleFile my taxes on a protected internet connection /
networkFile my taxes using a personal computer
File my taxes using certified mailPassword protect my electronic tax documents
File my taxes on a computer with up-to-date antivirus software
Enroll in credit monitoring / identity theft protectionKeep my physical tax documents in a locked, secure
location
17%12%12%
8%8%
7%7%
6%6%6%
Protections against Tax-Related Identity Theft(Shown off % familiar with tax-related identity theft)
However, consumers do have an appetite for using an IRS-issued PIN to protect their identities during tax season