March 26, 2007 12:05 PM PDT

More U.S. taxpayers filing online

A greater number of taxpayers are expected to submit their returns to the Internal Revenue Service online this year, despite lingering security concerns.

During the first quarter, nearly 39 percent of respondents to a survey said they planned to file their federal taxes online this year, up from 37 percent last year and approximately 28 percent three years ago, according to the Consumer Internet Barometer.

The barometer, released Monday and produced by the Conference Board and Taylor Nelson Sofres, found that approximately two-thirds of the 10,000 households surveyed have filed their taxes online for at least three consecutive years.

"The speed and convenience are helping to spur people to make the transition, but it's a slow process," said Lynn Franco, director of the Conference Board Consumer Research Center.

Concern about online security is one of the issues tempering the rapid adoption of online tax filing, Franco noted.

More than 68 percent of survey respondents were "somewhat" or "extremely" concerned with security issues related to online tax filing, according to the results. That degree of concern was also present in last year's results.

Nonetheless, Franco expects the number of online taxpayers to exceed more than 50 percent within the next several years.

"Once they get past their security concerns, it should reach that level," Franco said. "You can see from the results there are a lot of repeat users."

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Impressed with H&R Block
I was impressed with the H&R Block online service. The past two years we had gone into an H&R Block to have it done. Reasons irrelevant to this post, this year we tried the online version.

I think it's the exact same system used by the tax professionals at the offices. It was clean, quick, very helpful. Showed the refund as we went along, allowed us to go back and tweak things, effortlessly did the California partial-year and at the end, submitted it all electronically. Had the California refund back in 8 days and the IRS refund back in about 14 days.

Would totally recommend them. The tax professional in the office might help you find another thing or two to itemize, but the system helps you find nearly everything.
Posted by TV James (680 comments )
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My credit is so bad
It would probably be a punishment to whoever stole my identity.
Posted by ajbright (447 comments )
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