Bush Gives Boost To Online Tax Filing

by Mike Godfrey, Tax-News.com, Washington

01 February 2002

President Bush and the US Treasury Department are seeking to boost the number of individuals filing their tax returns online, it was revealed on Wednesday.

Although it is expected that around 45 million taxpayers will file online this year, over 90 million will not, and it is these taxpayers that the President is reaching out to. In order to encourage the less techno-savvy, the Treasury Department has proposed a 10 day extension for online filers, which would take effect in 2003, and suggested that simpler returns could be sent direct to the IRS free of charge.

Cost is one of the factors which the Treasury believes has previously kept internet filing numbers low, although security issues have also traditionally been a concern for taxpayers. While filing a paper return usually costs no more than the postage, some private tax preparers can charge as much as $12 to file a simple electronic return.

Although tax preparation industry groups and seme members of Congress have raised concerns over the fact that the Internal Revenue Service's internet filing site would effectively be in competition with private businesses in certain cases, acting as both tax collecter and return preparer, Treasury Secretary Paul O'Neill sought to reassure them on Wednesday:

'I don't intend for the IRS to get into the software business, but rather to open a constructive dialogue with those who already have established expertise in the field,' he explained.

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