Hoosier taxpayers catching on to electronic filing

Feb. 1, 2007

Contact: Stephanie McFarland, APR
317.234.3793 - office
317.696.3275 - mobile

INDIANAPOLIS (Feb. 1, 2007) – Hoosiers across the state are mirroring a federal trend when it comes to filing their taxes electronically, the Indiana Department of Revenue reports. Last year more than 1.4 million Indiana taxpayers, a 20-percent increase over the previous year, filed their state taxes online. In all, more than 48-percent of Indiana individual-income-tax returns were filed electronically in 2006, closely aligning with the 52-percent of federal returns that were filed electronically last year with the Internal Revenue Service.

“Electronic filing is a good deal for the state and for taxpayers,” said Department of Revenue Commissioner John Eckart. “People who file electronically usually receive refunds faster, avoid costly errors, and they help save the state about 96 cents per return processed.”

To encourage timely filing, the Department of Revenue offers I-File, the state’s free online filing program, which was originally launched in 1998. Last year the program was reintroduced with significant upgrades to make it more user-friendly.

Those upgrades resulted in a 15-percent increase in I-File users last year, and a 94-percent approval rating from more than 1,000 taxpayers that participated in a survey about the online program. The survey also revealed that 95 percent of last year’s I-File users would likely use the program again this year, and 96 percent would recommend it to others.

This year the Department of Revenue is looking to encourage those taxpayers that use their own filing software to consider filing electronically. “Software programs assign a barcode to a printed return, but when that return comes to us in the mail, it requires attention similar to handling a paper return,” explained Eckart.

A separate survey conducted last fall found that 62 percent of Indiana taxpayers that mail in the barcoded returns would likely file their 2006 returns electronically. Last year more than 600,000 Hoosiers mailed in barcoded returns.

For more information about I-File, taxpayers can visit www.ifile.in.gov/