Taxpayers Can Designate One Dollar of Their Taxes
to Help Fund Presidential Elections

WASHINGTON - The Internal Revenue Service today reminded taxpayers who have not yet filed their federal income tax returns that they can designate one dollar of their tax to help fund presidential elections by checking a special box on their tax forms. For a married couple filing a joint return, each spouse may check a box to designate a dollar to the fund.

An early sampling of tax returns filed so far this year indicates that almost 25 percent show designations to the fund. Money in the fund is used in the federal matching program to help finance presidential elections.

The IRS said that in 1989 over 22 million tax returns -- or approximately 20 percent -- showed designations totaling over $32 million to the presidential election campaign fund. This brings the amount credited to the fund since it began in 1972 to $567 million.

Presidential election campaign fund designations are more likely to appear on returns filed later in the tax filing season, the IRS said. Almost two-thirds of the $32 million designated last year -- $21 million -- was shown on returns filed in March and April.

The IRS reminded taxpayers that the presidential election campaign fund designation does not change the amount of tax or reduce the amount of the refund. The designations have no impact at all in the computation of tax liability.

In the filing statistics released this week, IRS noted that filing and processing of returns are still running ahead of last year, with almost 45 million returns filed as of March 9 and almost 33 million processed. Over 3 million returns have been filed electronically, an increase of 281 percent over last year.

Refunds are also on the rise. Over 21 million refunds have been authorized as of March 8, and the average refund is up somewhat over last year, at $852.

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