Joint Federal/State Filings Cut Taxpayer Burden

WASHINGTON - The Internal Revenue Service and seven states are testing the joint electronic filing of federal and state tax returns. This is part of the continuing IRS effort to reduce the tax filing burden.

In this program, the IRS gives the state data it receives to the state tax authorities so that taxpayers don't have to file state returns separately. Although the IRS accepts balance due returns electronically, the joint filing test is limited to refund returns. Taxpayers should get both federal and state refunds in about three weeks, rather than the six to eight weeks customary for paper returns.

In South Carolina, the only area with statewide joint electronic filing, over 122,000 taxpayers have filed through the system this year. The other six states -- Kansas, Maine, New York, North Carolina, West Virginia and Wisconsin -- are limiting the joint filing test to selected locations or employees..

Joint filing was first tested last year with South Carolina, with 252 returns filed. Future expansion will depend upon the results of this year's test for both IRS and the states

By mid-February, the IRS had received 26.4 million tax returns, slightly ahead of last year's pace. Electronic returns totaled 6.2 million, a nearly 60 percent increase. At $1,122, the average refund was up 14 percent.

Previous | Next

1992 IRS News Releases | News Releases Main | Home