Nearly 70 Percent of Taxpayers Used IRS e-file in 2010

According to the IRS's newest press release about 99 million taxpayers filed their federal income tax returns electronically last tax season. This represents a 3% increase from the year before.

Of the 141.5 million returns filed so far this year, almost 70 percent were filed electronically.

Each year, more taxpayers chose to e-file their tax returns. Last year, nearly 95 million taxpayers, or 67 percent, used e-file. In the past decade, the number of individual tax returns e-filed has increased by 145 percent. The overall number of individual tax returns increased only by 8 percent. IRS e-file is no longer is the exception; now it is the norm.

Home Computer e-Filers

Taxpayers who prepare their own tax returns using home computers continued to set the pace for e-file. This year, more than 35 percent of e-filers prepared and filed their returns themselves.

Almost 35 million returns were e-filed from home computers, up 8 percent from last year.

Direct Deposit Refunds

More than 74 million refunds were electronically deposited into taxpayers’ accounts, saving taxpayers a trip to the bank. More importantly, these taxpayers received their refunds at least a week faster than those receiving paper checks.

Continued at IRS.gov...

IRS e-file: It’s Safe; It’s Easy; It’s Time

According to their newest press release, the IRS’ e-file program that allows taxpayers to file their return electronically opened for business on January 15^th. This year marks 20 years of safely and securely transmitting nearly 800 million individual federal tax returns.

The Internal Revenue Service debuted e-file nationally in 1990, delivering 4.2 million tax returns. Last year, IRS e-file delivered 95 million tax returns, 66 percent of all returns filed.

“Electronic filing is more and more popular every year, and most taxpayers now e-file. IRS e-file means faster refunds. It means the option to file now and pay later if you owe additional tax. It means peace of mind knowing the IRS received the return because we send an acknowledgement. Those are the reasons this has been a popular service,” said Doug Shulman, IRS Commissioner. “IRS e-file is safe, it’s easy and everyone should try it.”

Last year, more than 49 million taxpayers missed out on the e-file benefits. The IRS urges taxpayers, especially those people already using tax software, to take the next step and e-file their return or ask their preparer to e-file their return. The IRS urges tax preparers who electronically file some of their clients’ tax returns to consider filing all tax returns through e-file.

The IRS is working on faster acknowledgements of accepted or rejected returns. Last year, taxpayers received an acknowledgement within 48 hours that the IRS had accepted or rejected their return. Paper filers do not receive any acknowledgement. Also, if the IRS rejects an e-filed return, it will provide more specific explanations of the errors that caused the rejection. This will enable taxpayers to make corrections and quickly resubmit their returns.

IRS e-file offers the fastest, safest way for people to receive their tax refunds. By using e-file and direct deposit, taxpayers can get their refunds in as few as 10 days. Taxpayers even can opt to have their refund deposited into two or three financial accounts or purchase a U.S. Savings Bond.

Two Out of Three Individuals Now Using IRS e-File

From the IRS Newsroom:

Individuals e-filed a record 95 million federal income tax returns during 2009, up almost 6 percent from last year’s total of nearly 90 million. About two out of three taxpayers e-filed this year; out of the 141 million returns filed so far this year, over 67 percent were e-filed, compared to 59 percent last year.

Each year, more taxpayers chose to e-file their tax returns. While the total number of tax returns has increased 10 percent during the past decade, the number filed electronically has increased by 168 percent. Taxpayers who e-file from a home computer continue to be an increasingly significant segment of those who e-file.

Home Computer e-Filers

This year, for the first time, more than a third of e-filers are those doing it themselves from a home computer More than 32 million returns were e-filed from home computers, up almost 20 percent from last year’s record of 27 million. People filing from their home computers account for about 34 percent of all e-filed returns from individuals.

Direct Deposit Refunds

Almost 73 million refunds were electronically deposited into taxpayer’s accounts, saving the government mailing costs and saving taxpayers a trip to the bank. More importantly, these taxpayers received their refunds a week sooner than those receiving a paper check.

These direct deposit refunds accounted for 66 percent of all refunds, up from 62 percent of refunds last year. Overall, the IRS issued 110 million refunds, averaging $2,753 per refund; direct deposit refunds averaged $2,997 per refund.

Free File

More than 3 million taxpayers filed their tax returns for free through the IRS free file program. This year for the first time, taxpayers could also file directly to the IRS by completing a Form 1040 on IRS.gov; 273,000 taxpayers used this new way to file.

IRS Urges Taxpayers To e-file Extension Requests by April 15 Filing Deadline

The IRS recently posted a new press release, urging taxpayers to file extensions before the filing deadline.

Taxpayers who need more time to complete their returns should submit their requests for an automatic extension electronically by April 15, the Internal Revenue Service urged today.

This year, anyone, regardless of income, can e-file their extensions at no cost from a home computer using IRS traditional FreeFile or FreeFile Fillable Forms. E-filing a request for an extension using either form of FreeFile is convenient, safe and secure, and taxpayers receive confirmation to keep with their records.

The IRS expects to receive 1.9 million extension requests electronically this year. A total of almost 10 million extension requests are expected during 2009 compared with 9.5 million extensions received during 2008.

The extension gives taxpayers until Oct. 15 to file the tax return. An extension does not give the taxpayer an extension of time to pay. Those who owe taxes can make a payment when they file the extension either by mailing a check or by several electronic payment methods, such as electronic funds withdrawals from bank accounts and credit card payments.

Taxpayers can get an automatic six-month extension of time to file their tax returns by filing Form 4868, Automatic Extension of Time to File.

Taxpayers can e-file the extension from a home computer or through a tax professional who uses e-file.

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IRS Claims E-Filing off to a Strong Start

The IRS announced that e-filing is off to a great start this tax season. So far, over 38 million returns have been electronically filed. This represents a 5 percent increase from the same period last year, with double-digit growth coming from taxpayers filing from their home computers. More than 12.3 million returns were filed from home computers, which is an increase of almost 14 percent from the same time last year.

“E-filing continues to be the preferred way to file your tax return. It is the fast, easy, safe and more accurate way to file your tax return,” claimed IRS Acting Commissioner Linda E. Stiff.

As for the total amount of all refunds, $106.7 billion has been issued so far in 2008 with the average refund amount of $2,708, up two percent from the same time last year. So far this year, the IRS has directly deposited 33 million refunds out of the total of 39 million refunds. The direct deposit refunds were valued at just over $96 billion with the average amount of a direct deposit refund of $2,900.

IRS Reminds Farmers & Fishermen They May Have Until March to E-File

The IRS published a release reminding agricultural taxpayers, including farmers and fishermen that they may need to wait until March 3rd to e-file their tax return. According to the IRS, any taxpayer who files Form 1040 returns with Form 4136, Credit for Federal Tax Paid on Fuels, will have to wait.

"Normally, 1040 filers who are farmers or fishermen are not required to make an estimated tax payment if they file their return and pay all taxes due by March 1," claims the IRS. "But this year, because March 1 falls on a Saturday, the date extends to Monday, March 3. For eligible farmers and fishermen who attach Form 4136 to their Form 1040, the return will be considered timely filed with all tax paid if the return is e-filed and accepted on or before March 10 and all tax due is paid on or before March 10."

The IRS expects this delay to affect about 77,000 farmers and fishermen who electronically file Form 1040 with Form 4136 in the early weeks of the filing season. For more information, please visit www.IRS.gov.

IRS Announces Record High E-filers

According to an IRS new release, in 2007 57.4% of taxpayers filed their tax returns through e-file. This number was up about 9 percent from the 73 million returns filed for the same period last year. Overall in 2007, 139.3 million returns were filed – 79.98 million of which were filed electronically. "It was another record-breaking year for e-file," said IRS Acting Commissioner Linda E. Stiff. "Paper returns continue to drop year after year. E-file is the safe, accurate way for more and more taxpayers to quickly complete their taxes and get a refund faster." Additionally, more people this year chose to have their tax refunds directly deposited than ever before. So far this year the IRS has directly deposited 61.4 million refunds, up 8 percent from last year.

IRS Claims Electronic Excise Tax Filing Is Coming

The IRS announced they will be adding three excise tax forms to the list of federal tax returns and schedules that can be filed electronically later this year. "Electronic filing is a key component to modernizing our tax system," claims Acting IRS Commissioner Kevin M. Brown. "Expanding e-file opportunities to include excise tax returns will help improve service to taxpayers using these forms." The IRS expects to receive the first electronically-filed excise tax return this summer, when Form 2290, Heavy Highway Vehicle Use Tax Return, becomes the first available excise tax return that can be e-filed.

2007 Tax Season Sets IRS Records

The 2007 tax season set new records for the number of e-files, direct deposits, and hits to the IRS’s official website. According to recent IRS data, there were over 76 million income tax returns that were e-filed, with an additional surge of last minute filers choosing to e-file. "E-file and our other electronic services helped us deliver a strong filing season for the nation’s taxpayers," said IRS Acting Commissioner Kevin M. Brown. "Again this year, millions of additional taxpayers gave up paper tax returns to file electronically. E-file and IRS.gov were among several factors that helped us overcome one of the most challenging filing seasons ever for the IRS." The IRS claims their official site received over 140 million visitors, up nearly 13 million from last year. Source: IRS.gov.

More Last Minute Filers E-file

According to IRS data, as the tax deadline approaches more and more last minute filers are choosing to e-file. Historically more people e-file at the beginning of tax season, and typically those people are expecting a refund and want to get it fast. Late filers traditionally owe the government money and have more often used paper tax returns. But new statistics are showing that many taxpayers are choosing to pay electronically through credit card or direct debit. According to the IRS nearly 57 million returns have already been e-filed this year. Nearly one-third of those returns were e-filed during March alone, up more than 10 percent over last March. For more information check out the IRS’s website.

E-Filing Up 5 Percent Says IRS

According to the IRS’s official website the number of tax returns being filed electronically is up five percent from the same time period last year. According to IRS Commissioner Mark W. Everson, "taxpayers are filing electronically at a record pace this year, E-file reduces taxpayer errors and gets refunds back quickly." So far 73 percent of all returns have been e-filed this tax filing season, up from 70 percent for the same period last year. Also up is the number of people having their returns deposited directly into their bank accounts. 76 percent of all refunds issued this tax-filing season were directly deposited, up from 71 percent for the same period last year.

E-Filing And Direct Deposit Numbers Up This Year

According to IRS data from March 2, 2006, the number of people using the e-file system, as well as people direct depositing their refunds has risen yet again. Overall the number of e-files has increased by 4% when compared with last year’s data. Including an increase in 7% of e-filing from personal computers and a 2% increase in e-filing from tax preparers. Also more people are requesting their refunds be directly deposited into their bank accounts. So far 82% of all tax refunds have been direct deposited, up from 80% last year. Source: IRS.gov.

The Government to Require E-filing for Small Businesses

In the next few months many small and medium sized businesses will be required to e-file their tax returns and other tax forms including W-2s and 1099s. According to the Internal Revenue Service, corporations with $10 million or more in total assets and those that file 250 or more returns, which includes the annual tax forms given to employees and independent contractors, will be required to submit their forms for 2006 using the government’s e-filing system. Although there is no official word, it is presumed that the IRS will push more companies towards e-filing in the future. For more information click here.