Today marks the first day that taxpayers can electronically file federal tax returns with the Internal Revenue Service. Thanks to a new IRS program put in place for tax returns filed for the 2000 tax year, electronic filing with Intuit Inc.'s (NASDAQ: INTU) Quicken© TurboTax© is now completely paperless, making it even easier to get a refund back fast. About 70% of taxpayers receive a federal tax refund each year with the average federal tax refund being approximately $1,500. E-filing is the fastest way for taxpayers to receive their refund with most filers getting their return in about 10 days compared to four to six weeks for paper returns filed by mail.
As part of its continuing initiative to achieve the stated goal of 80% of taxpayers e-filling by 2007, the IRS has introduced a new Personal Identification Number (PIN) system to eliminate the need to send any signed forms when electronically filing a federal tax return.
When taxpayers use TurboTax or the Quicken TurboTax for the WebSM service, which both support the new program, they are guided through selecting a five-digit PIN number before filing electronically. To further confirm the taxpayer's identity, the IRS also asks the taxpayer to include their adjusted gross income and some tax information from their previous year's tax return. Selecting a PIN number and providing the other personal tax information serves as the taxpayer's "electronic signature. " No documents need to be mailed to the IRS.
This year, the IRS expects 42 million taxpayers will file returns electronically, up from 36 million last year.
TurboTax Leads the Way For Electronic Filing
In tax year 1999, TurboTax, the #1 selling tax preparation software and TurboTax for the Web, the most popular online tax preparation and filing service, accounted for 70% of all personal federal tax returns filed with the IRS's online filing program. The ease of use, convenience and reliability of the TurboTax products helped millions of customers receive their refund faster. By electronically filing their returns, taxpayers can receive refunds in as little as 10 days, compared to up to six weeks for returns filed by mail. In addition, the IRS will direct deposit refunds into a taxpayer-designated account, further speeding up receipt of the refund and eliminating any paper or a trip to the bank. Electronic filing is also more accurate. According to IRS statistics, tax returns filed electronically have a less than one-percent error rate, compared to 20% for manually prepared returns. TurboTax customers can also prepare and file their state tax returns electronically with 38 states and the District of Columbia.
TurboTax State Editions Now Available
Quicken TurboTax State, which offers programs for all 44 states with income tax plus the District of Columbia, prepares state returns faster and more accurately than with paper and pencil. Tax information flows directly from the federal version of TurboTax to TurboTax State, easing and speeding the state tax preparation process. One state product is included free via rebate with the TurboTax Deluxe and TurboTax Home & Business products. TurboTax State is available at retail outlets across the country and for download at www.turbotax.com.
And for those who prefer the convenience of the Internet, TurboTax for the Web (www.turbotax.com), available beginning January 13, 2001, prepares and files both federal and state tax returns via the Internet - no need to download or purchase software.
About Quicken TurboTax
Quicken TurboTax is the #1-selling tax preparation software program, with approximately 70% retail unit share in 2000, according to PC Data. Its web-based counterpart, Quicken TurboTax for the Web, is the most popular site for online tax preparation and filing services. In addition, Intuit offers Quicken TurboTax Home & Business, designed for the sole proprietor. The Automated Tax Return feature is included at no additional charge in all of these versions of TurboTax. With 17 years of personal finance expertise, the TurboTax family of products saves time and money for more than 13 million Americans each year.
