Albany --The Internal Revenue Service this week will announce radical changes in the way you can electronically file your income taxes.
In the past, you had to go to a tax preparing business and pay them to file your form electronically. But the I.R.S. is ready to announce new software that will help you E-file from your own computer, for free.
Two million Georgians Electronically filed their Federal Income Tax forms last year, over half of those filing. Most E-filers went to tax preparers and had to pay for their service. Thursday, the I.R.S. will announce a new way to E-file on your own.
I.R.S. specialist Mark Green said "The Internal Revenue Service has teamed up with several tax software companies. These companies will be providing free on-line tax preparation as well as free electronic filing. You can do this from your home, or anyone who has access to a computer and Internet."
The I.R.S. recommends E-filing, because it improves accuracy, alerting taxpayers to errors before the return is filed. It also speeds up your refund. Green said "We see a big popular demand for Electronic filing. By the year 2007 we expect at least 70 percent of taxpayers to have filed a return electronically."
Georgia will be one of the first states able to use the I.R.S .'s new tax filing system. The full program will be announced Thursday.
Green said "It helps both the taxpayers as well as the I.R.S. The taxpayer gets their return back within 10 to 14 business days. On our end, we know the return we received is accurate. So we do not need to contact the taxpayer to get more information."
This year there are increases in the personal exemption, as well as standard deductions, for most taxpayers.