Today marks the first day that taxpayers and accounting professionals can electronically file 2001 federal income tax returns with the Internal Revenue Service. Intuit Inc., makers of Quicken® TurboTax®, the No. 1-selling tax preparation software and ProSeries® and Lacerte®, the leading tax preparation software for professional accountants, is joining with the IRS to encourage taxpayers and practitioners to electronically file tax returns to get refunds back fast.
The IRS has a stated goal of achieving 80 percent of all tax returns electronically filed by 2007. Lingering concerns with the mail are expected to help the IRS reach 45 million electronically filed returns this year, up from 40 million in tax year 2000. Last year, Intuit's professional and consumer tax software products accounted for more than 20 percent of all e-filed returns accepted by the IRS. The continued growth in electronic filing is a direct result of increasing consumer demand and awareness of the benefits of electronic filing. The American Customer Satisfaction Index recently rated the IRS' customer satisfaction of e-filers for tax year 2000 at 77 percent - an increase of 11 percent over 1999. Those taxpayers who e-file say they experience improved customer service in addition to a faster refund.
Tom Allanson, senior vice president of Intuit's Tax Division says, "when you consider that about 70 percent of taxpayers receive a federal tax refund each year and with last year's refund averaging about $1,700, it's no wonder that more and more taxpayers are turning to electronic filing. Whether you e-file your return yourself or ask an accountant to do it, the benefits are the same - a more accurate return and a faster refund."
Electronic filing is the fastest way for taxpayers to receive their refund with most filers getting their refund in about 10 days compared to four to six weeks for paper returns filed by mail. In addition, the IRS will direct deposit refunds into a taxpayer-designated account, further speeding 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.
Intuit's tax products support the IRS's Self-Select PIN option for completely paperless electronic filing. This means practitioners and taxpayers don't have to send in a separate paper signature document, they simply select a five-digit pin number that serves as their electronic signature. No documents need to be mailed to the IRS. Electronic filing is fully integrated into Intuit's tax software for both federal returns and for every state (41 plus the District of Columbia) that accepts e-filed returns. TurboTax and Intuit's ProSeries and Lacerte professional tax products provide an acknowledgement of receipt of an e-filed return as well as a date stamp and allow users to check the status of their e-filed return online.
"Intuit has been the leader in e-filing for both consumers and professionals for years. Last year TurboTax accounted for 75 percent of all self-prepared e-filed returns accepted by the IRS," Allanson says. "And we're expecting more accountants to get on the e-file bandwagon as an increasing number of consumers become aware of the great benefits associated with e-filing."
