The Rise of E-Filing

e THE RISE OF E-FILING A LITTLE HISTORY David Stell, a spokesman for the IRS in Arkansas and Oklahoma, said e-filing began in 1986 as a pilot project in Cincinnati, Phoenix and Raleigh-Durham, N.C. That year, .... only 25,000 tax returns were filed electronically. BY THE NUMBERS Almost 70% of the 141.5 More than 98,740,000 million federal income tax individuals filed their 70% returns filed by taxpayers federal income tax returns during the first 11 months of electronically by the end the 2010 calendar year were of 2010. filed electronically. A HISTORICAL LOOK AT THE GROWTH OF E-FILING Each year, more taxpayers choose to e-file their tax returns. In the past decade, the number of individual tax returns e-filed has increased by an astonishing 145%. IRS e-file is no longer the exception, now it is the norm. E-FILED RETURNS TOTAL RETURNS EFILE % OF TOTAL RETURNS Year 25M 50M 75M 100M 125M 150M 175M 2001 40.2 M 31% 130.9 M 2002 46.9 M 36% 131.7 M 2003 52.9 M 40% 131.6 M 2004 61.5 M 47% 133.4 M 2005 68.5 M 51% 133.9 M 2006 73.3 M 54% 136.1 M 2007 79.9 M 57% 140.2 M 2008 89.9 M 58% 153.7 M 2009 94.9 M 67% 141.4M 2010 98.7 M 70% 141.5 M 20 40 60 80 100 REFUNDS FOR E-FILERS CONSUMERS ARE DRIVING E-FILE GROWTH Nearly 99 million individuals filed their federal income tax returns electronically during 2010, a 3 percent increase in the IRS e-file rate. Of the 141.5 million returns filed so far this year, almost 70 percent were filed electronically. Almost 35 million returns were e-filed from home computers, up 8 percent last year. 2009 Self Prepared (32%) 2010 Self Prepared (35%) Professional Prepared (63%) Professional Prepared (64%) Consumer tax prep market is growing the most. Self-prepared (do-it-yourself) returns are up 8%. TOP 10 E-FILING STATES* 3 7 10 9 2 Rank and State E-Files Rank and State E-Files 1 California 11,184,524 6 Pennsylvania 3,712,113 Texas 6,802,759 7 Ohio 3,667,183 New York 6,030,614 Michigan 3,466,279 4 Florida 5,678,740 9 Georgia 3,005,609 5 Illinois 3,785,397 10 North Carolina 2,830,212 * Tax year 200o8 federal e-filing return by state THE PUSH FOR MORE E-FILING IN 2011 In October, the IRS sent postcards to taxpayers who filed paper returns this year announcing it would no longer mail paper tax packages that typically arrive in January. WHY E-FILE? E-filing is less costly to Uncle Sam. For fiscal year 2009, Since 1990, the IRS has processed nearly 1 billion e-filed tax returns safely and securely. In most cases, you can use free tax software to prepare and file your tax return electronically. it cost the IRS only 19 cents to process a single e-filed return, compared to $3.29 to process a paper return. Ongoing legacy paper return processing imposes a $67 million annual lost-opportunity cost on the IRS. Karen Connelly IRS spokesman E-filed returns are more accurate. Sources: TurboTax IRS, 2010: http://www.irs.gov/efile/article/0,id=98294,00.html http://www.irs.gov/newsroom/article/0,id=231381,00.html Choose Easy. IRS, 2008: http://www.irs.gov/pub/irs-uti/irs_advancing_e-file_study_phase_1_executive_summary_v_3.pdt Times Record Online, 2010: http://www.swtimes.com/business/article_c6b240da-Ob83-11e0-9089-00lcc4c002e0.html e THE RISE OF E-FILING A LITTLE HISTORY David Stell, a spokesman for the IRS in Arkansas and Oklahoma, said e-filing began in 1986 as a pilot project in Cincinnati, Phoenix and Raleigh-Durham, N.C. That year, .... only 25,000 tax returns were filed electronically. BY THE NUMBERS Almost 70% of the 141.5 More than 98,740,000 million federal income tax individuals filed their 70% returns filed by taxpayers federal income tax returns during the first 11 months of electronically by the end the 2010 calendar year were of 2010. filed electronically. A HISTORICAL LOOK AT THE GROWTH OF E-FILING Each year, more taxpayers choose to e-file their tax returns. In the past decade, the number of individual tax returns e-filed has increased by an astonishing 145%. IRS e-file is no longer the exception, now it is the norm. E-FILED RETURNS TOTAL RETURNS EFILE % OF TOTAL RETURNS Year 25M 50M 75M 100M 125M 150M 175M 2001 40.2 M 31% 130.9 M 2002 46.9 M 36% 131.7 M 2003 52.9 M 40% 131.6 M 2004 61.5 M 47% 133.4 M 2005 68.5 M 51% 133.9 M 2006 73.3 M 54% 136.1 M 2007 79.9 M 57% 140.2 M 2008 89.9 M 58% 153.7 M 2009 94.9 M 67% 141.4M 2010 98.7 M 70% 141.5 M 20 40 60 80 100 REFUNDS FOR E-FILERS CONSUMERS ARE DRIVING E-FILE GROWTH Nearly 99 million individuals filed their federal income tax returns electronically during 2010, a 3 percent increase in the IRS e-file rate. Of the 141.5 million returns filed so far this year, almost 70 percent were filed electronically. Almost 35 million returns were e-filed from home computers, up 8 percent last year. 2009 Self Prepared (32%) 2010 Self Prepared (35%) Professional Prepared (63%) Professional Prepared (64%) Consumer tax prep market is growing the most. Self-prepared (do-it-yourself) returns are up 8%. TOP 10 E-FILING STATES* 3 7 10 9 2 Rank and State E-Files Rank and State E-Files 1 California 11,184,524 6 Pennsylvania 3,712,113 Texas 6,802,759 7 Ohio 3,667,183 New York 6,030,614 Michigan 3,466,279 4 Florida 5,678,740 9 Georgia 3,005,609 5 Illinois 3,785,397 10 North Carolina 2,830,212 * Tax year 200o8 federal e-filing return by state THE PUSH FOR MORE E-FILING IN 2011 In October, the IRS sent postcards to taxpayers who filed paper returns this year announcing it would no longer mail paper tax packages that typically arrive in January. WHY E-FILE? E-filing is less costly to Uncle Sam. For fiscal year 2009, Since 1990, the IRS has processed nearly 1 billion e-filed tax returns safely and securely. In most cases, you can use free tax software to prepare and file your tax return electronically. it cost the IRS only 19 cents to process a single e-filed return, compared to $3.29 to process a paper return. Ongoing legacy paper return processing imposes a $67 million annual lost-opportunity cost on the IRS. Karen Connelly IRS spokesman E-filed returns are more accurate. Sources: TurboTax IRS, 2010: http://www.irs.gov/efile/article/0,id=98294,00.html http://www.irs.gov/newsroom/article/0,id=231381,00.html Choose Easy. IRS, 2008: http://www.irs.gov/pub/irs-uti/irs_advancing_e-file_study_phase_1_executive_summary_v_3.pdt Times Record Online, 2010: http://www.swtimes.com/business/article_c6b240da-Ob83-11e0-9089-00lcc4c002e0.html e THE RISE OF E-FILING A LITTLE HISTORY David Stell, a spokesman for the IRS in Arkansas and Oklahoma, said e-filing began in 1986 as a pilot project in Cincinnati, Phoenix and Raleigh-Durham, N.C. That year, .... only 25,000 tax returns were filed electronically. BY THE NUMBERS Almost 70% of the 141.5 More than 98,740,000 million federal income tax individuals filed their 70% returns filed by taxpayers federal income tax returns during the first 11 months of electronically by the end the 2010 calendar year were of 2010. filed electronically. A HISTORICAL LOOK AT THE GROWTH OF E-FILING Each year, more taxpayers choose to e-file their tax returns. In the past decade, the number of individual tax returns e-filed has increased by an astonishing 145%. IRS e-file is no longer the exception, now it is the norm. E-FILED RETURNS TOTAL RETURNS EFILE % OF TOTAL RETURNS Year 25M 50M 75M 100M 125M 150M 175M 2001 40.2 M 31% 130.9 M 2002 46.9 M 36% 131.7 M 2003 52.9 M 40% 131.6 M 2004 61.5 M 47% 133.4 M 2005 68.5 M 51% 133.9 M 2006 73.3 M 54% 136.1 M 2007 79.9 M 57% 140.2 M 2008 89.9 M 58% 153.7 M 2009 94.9 M 67% 141.4M 2010 98.7 M 70% 141.5 M 20 40 60 80 100 REFUNDS FOR E-FILERS CONSUMERS ARE DRIVING E-FILE GROWTH Nearly 99 million individuals filed their federal income tax returns electronically during 2010, a 3 percent increase in the IRS e-file rate. Of the 141.5 million returns filed so far this year, almost 70 percent were filed electronically. Almost 35 million returns were e-filed from home computers, up 8 percent last year. 2009 Self Prepared (32%) 2010 Self Prepared (35%) Professional Prepared (63%) Professional Prepared (64%) Consumer tax prep market is growing the most. Self-prepared (do-it-yourself) returns are up 8%. TOP 10 E-FILING STATES* 3 7 10 9 2 Rank and State E-Files Rank and State E-Files 1 California 11,184,524 6 Pennsylvania 3,712,113 Texas 6,802,759 7 Ohio 3,667,183 New York 6,030,614 Michigan 3,466,279 4 Florida 5,678,740 9 Georgia 3,005,609 5 Illinois 3,785,397 10 North Carolina 2,830,212 * Tax year 200o8 federal e-filing return by state THE PUSH FOR MORE E-FILING IN 2011 In October, the IRS sent postcards to taxpayers who filed paper returns this year announcing it would no longer mail paper tax packages that typically arrive in January. WHY E-FILE? E-filing is less costly to Uncle Sam. For fiscal year 2009, Since 1990, the IRS has processed nearly 1 billion e-filed tax returns safely and securely. In most cases, you can use free tax software to prepare and file your tax return electronically. it cost the IRS only 19 cents to process a single e-filed return, compared to $3.29 to process a paper return. Ongoing legacy paper return processing imposes a $67 million annual lost-opportunity cost on the IRS. Karen Connelly IRS spokesman E-filed returns are more accurate. Sources: TurboTax IRS, 2010: http://www.irs.gov/efile/article/0,id=98294,00.html http://www.irs.gov/newsroom/article/0,id=231381,00.html Choose Easy. IRS, 2008: http://www.irs.gov/pub/irs-uti/irs_advancing_e-file_study_phase_1_executive_summary_v_3.pdt Times Record Online, 2010: http://www.swtimes.com/business/article_c6b240da-Ob83-11e0-9089-00lcc4c002e0.html e THE RISE OF E-FILING A LITTLE HISTORY David Stell, a spokesman for the IRS in Arkansas and Oklahoma, said e-filing began in 1986 as a pilot project in Cincinnati, Phoenix and Raleigh-Durham, N.C. That year, .... only 25,000 tax returns were filed electronically. BY THE NUMBERS Almost 70% of the 141.5 More than 98,740,000 million federal income tax individuals filed their 70% returns filed by taxpayers federal income tax returns during the first 11 months of electronically by the end the 2010 calendar year were of 2010. filed electronically. A HISTORICAL LOOK AT THE GROWTH OF E-FILING Each year, more taxpayers choose to e-file their tax returns. In the past decade, the number of individual tax returns e-filed has increased by an astonishing 145%. IRS e-file is no longer the exception, now it is the norm. E-FILED RETURNS TOTAL RETURNS EFILE % OF TOTAL RETURNS Year 25M 50M 75M 100M 125M 150M 175M 2001 40.2 M 31% 130.9 M 2002 46.9 M 36% 131.7 M 2003 52.9 M 40% 131.6 M 2004 61.5 M 47% 133.4 M 2005 68.5 M 51% 133.9 M 2006 73.3 M 54% 136.1 M 2007 79.9 M 57% 140.2 M 2008 89.9 M 58% 153.7 M 2009 94.9 M 67% 141.4M 2010 98.7 M 70% 141.5 M 20 40 60 80 100 REFUNDS FOR E-FILERS CONSUMERS ARE DRIVING E-FILE GROWTH Nearly 99 million individuals filed their federal income tax returns electronically during 2010, a 3 percent increase in the IRS e-file rate. Of the 141.5 million returns filed so far this year, almost 70 percent were filed electronically. Almost 35 million returns were e-filed from home computers, up 8 percent last year. 2009 Self Prepared (32%) 2010 Self Prepared (35%) Professional Prepared (63%) Professional Prepared (64%) Consumer tax prep market is growing the most. Self-prepared (do-it-yourself) returns are up 8%. TOP 10 E-FILING STATES* 3 7 10 9 2 Rank and State E-Files Rank and State E-Files 1 California 11,184,524 6 Pennsylvania 3,712,113 Texas 6,802,759 7 Ohio 3,667,183 New York 6,030,614 Michigan 3,466,279 4 Florida 5,678,740 9 Georgia 3,005,609 5 Illinois 3,785,397 10 North Carolina 2,830,212 * Tax year 200o8 federal e-filing return by state THE PUSH FOR MORE E-FILING IN 2011 In October, the IRS sent postcards to taxpayers who filed paper returns this year announcing it would no longer mail paper tax packages that typically arrive in January. WHY E-FILE? E-filing is less costly to Uncle Sam. For fiscal year 2009, Since 1990, the IRS has processed nearly 1 billion e-filed tax returns safely and securely. In most cases, you can use free tax software to prepare and file your tax return electronically. it cost the IRS only 19 cents to process a single e-filed return, compared to $3.29 to process a paper return. Ongoing legacy paper return processing imposes a $67 million annual lost-opportunity cost on the IRS. Karen Connelly IRS spokesman E-filed returns are more accurate. Sources: TurboTax IRS, 2010: http://www.irs.gov/efile/article/0,id=98294,00.html http://www.irs.gov/newsroom/article/0,id=231381,00.html Choose Easy. IRS, 2008: http://www.irs.gov/pub/irs-uti/irs_advancing_e-file_study_phase_1_executive_summary_v_3.pdt Times Record Online, 2010: http://www.swtimes.com/business/article_c6b240da-Ob83-11e0-9089-00lcc4c002e0.html