E-filing is a hit across the board. The Internal Revenue Service (IRS) reports that more than 39.5 million individual taxpayers, representing 73 percent of the total returns filed, had e-filed by early March. More than 450 of the nation’s largest corporation have electronically filled taxes in advance of the March 15 filing date, as well. Although individual taxpayers have a choice regarding whether or not to e-file, large corporate taxpayers, defined by the IRS as those with more than $50 million in assets that file at least 250 returns, are required to e-file this year.
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“The home computer is increasingly replacing the paper tax form,” said IRS Commissioner Mark V. Everson in a prepared statement regarding the statistics for individual taxpayers. “Both individual taxpayers and tax professionals are turning to e-file more and more because it’s fast and accurate.”
Other statistics indicating individual taxpayers are making use of their electronic options at record paces include:
- Since January, the number of visits to the IRS web site is up almost 6 percent over last year, to 70.4 million. Last week alone, there were more than 7.2 million visits to the site, up nearly 9 percent from the previous year.
- So far this year, 33.9 million individual income tax refunds, or about 76 percent of all refunds, have been directly deposited in bank accounts, up from 73 percent for the same period last year.
- Individual taxpayers have made 629,251 credit card payments, for a total of $355 million, so far this year. That’s a 41 percent increase from the 448,547 payments made last year. The total amount paid is up 48 percent over the previous year, too.
Individuals aren’t the only ones benefiting from e-file. Businesses and exempt organizations are conducting most or all of their transactions with the IRS electronically. In fact the IRS expects more than 10,000 large corporations to e-file by the extended filing date of September 15, 2006. Many corporations and exempt organizations will purchase software or rely on a tax professional to complete this year’s taxes electronically.
“We are pleased that large corporations have started making the transition from filing paper to electronic tax returns,” Deborah Nolan, commissioner of the Large and Mid-Size Business Division (LMSB) of the IRS, said in a statement regarding e-filing by large corporations. “We have worked closely with stakeholder groups representing corporations, tax professionals and the e-file software industry to develop e-file systems and processes that meet their needs.”