A million people have already prepared and filed their tax returns using online tax preparation software from Intuit, the company that makes the popular TurboTax program. Intuit hit the one-million mark two weeks earlier than it did last year, the company said Friday. Electronic filing of both federal and state returns through TurboTax products is up 35 percent from this time last year, the company reported. Last year nearly eight-million taxpayers used the Web and desktop versions of TurboTax to prepare their returns.
The IRS, which introduced Internet filing in 1990, strongly urges taxpayers to file their returns online because it saves the agency time and money in processing them. It also ensures consumers faster delivery of a refund and reduces the likelihood of errors. Last year the IRS processed more than 130 million returns; 35.8 million of them were filed via the Web, an 18 percent increase over the previous year. The IRS' goal is to have 80 percent of all returns filed electronically by 2007 and all returns that are prepared electronically also filed electronically by next year.