New Indiana Law Will Require More Taxpayers to File Electronically in 2008

Dec. 18, 2007

Contact: Stephanie McFarland, APR
317.234.3793 - office

Indianapolis (Dec. 18, 2007) -- Effective Jan. 1, 2008, Indiana will join 14 other states across the nation that require state tax returns to be filed electronically.  

A new law passed in the 2007 General Assembly requires that paid preparers who file 100 or more Indiana income-tax returns must file those returns electronically. Indiana is among a growing list of states that have some form of electronic filing legislation in place.

“Currently seven out of ten paid preparers in Indiana already file their clients’ returns electronically,” said Department of Revenue Commissioner John Eckart. “We’ve also seen a thirty-five-percent increase in electronic filing in just the past two years, so the law is in step with the trend we’re seeing among filers.”

Electronic filing provides a number of benefits to taxpayers and provides better government efficiency. “Taxpayers who file electronically generally receive their refunds in seven to 14 days, whereas paper-filed returns can take six to twelve weeks,” said Eckart.

The revenue commissioner also explained that it costs government significantly less to process electronically filed returns. “A paper return costs about one dollar to process, whereas it costs only about four cents to process an electronic return,” said Eckart. “That’s 96 cents of savings per return.”

The Department of Revenue processes about 3 million individual income-tax returns each year.

Taxpayers who are most likely to be impacted by the new law are those who use preparers who file 100 or more tax returns in a filing year.