Nonprofit charitable organizations exempt from income tax under Internal Revenue Code section 501(c)(3) filed over 263,000 information returns for Tax Year 2003, an increase of 5 percent from the previous year. These organizations held nearly $1.9 trillion in assets, an increase of 10 percent from 2002, and reported $1.1 trillion in revenue, 70 percent of which came from program service revenue.
For 2002, corporations filing a U.S. tax return claimed $42.4 billion in foreign tax credits. The foreign tax credit enabled these corporations to reduce their U.S. tax liability by 34.9 percent, from $121.5 billion to $79.1 billion. In percentage terms, this represents the largest share of foreign tax credits claimed against U.S. taxes since 1990.
Taxpayers filed 132.2 million individual income tax returns for Tax Year (TY) 2004, an increase from the 130.4 million returns filed for TY 2003. The adjusted gross income (AGI) less deficit reported on these returns totaled $6.8 trillion, a 9.4-percent increase from the previous year.
Businesses conduct profit-seeking activities in a variety of legal modes, choosing one form over another for various business, tax, or historical reasons. The SOI Integrated Business Data (IBD) was developed to facilitate research on business issues across organizational forms. This initiative was an extension of earlier work in SOI, expanded to include more detailed financial and industrial data, incorporating the latest year for which complete SOI data are available.
For 2004, the number of partnerships increased 7.2 percent, from 2,375,375 for 2003 to 2,546,877 for 2004. Since 1994, the number of partnerships has increased at an average annual rate of 5.1 percent. Prior to 1994, the number of partnerships declined for 5 consecutive years.
Although private foundations’ revenue earnings and asset values increased between Tax Years 2002 and 2003, the aggregate amount of contributions, gifts, and grants that these organizations supplied to the nonprofit sector was nearly unchanged. Between Tax Years 2002 and 2003, the total number of Forms 990-PF filed by tax-exempt private foundations increased by 4.2 percent to 76,348.
State and local governmental units issued over $872 billion of tax-exempt bonds during Calendar Years 2003 and 2004. In 2003, over 28,000 Governmental bonds were issued, which raised a total of $354.0 billion of proceeds for public projects (such as schools, streets, and utilities). In addition, over 4,100 tax-exempt private activity bonds were issued, for a total $94.0 billion in proceeds used to finance qualified private facilities (such as airports, docks and wharves, and solid waste disposal facilities), as well as to benefit Internal Revenue Code section 501(c)(3) organizations (such as hospitals and private universities). Approximately 26,000 Governmental bonds were issued in 2004, totaling $330.4 billion.