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The E-Files: The Truth Is Out There in Cyberspace
More consumers are filing their taxes online, and fewer are concerned about Internet security, according to reports from the Conference Board, the global business research and membership organization, and TNS, a global market insight and information group.
This year, 39 percent of consumers intend to file their 2006 federal taxes online, up from 28 percent just three years ago. Online tax filing is a growing trend. Nearly two-thirds of consumers report having filed online for three or more consecutive years, of which nearly half have been filing online for more than five years.
The Consumer Internet Barometer, produced by the Conference Board and TNS, surveys 10,000 households across the country and tracks who's doing what on the Internet. Among consumers intending to file their federal taxes online, nearly 40 percent intend to use a professional tax service, with women more likely than men to seek assistance. Do-it-yourself tax software is more popular among male filers than female filers.
The number of online filers using IRS e-file has declined since 2004, as the pool of eligible filers has likely shrunk due to increased complexity in returns and as more alternatives become available. Slightly more women than men (20 percent versus 19 percent) will use IRS e-file.
Consumers are less concerned about security when filing taxes online. Today, only 43 percent of Internet users are "extremely" concerned about filing taxes online, down from 52 percent in 2004.