Revenue Surpasses $12 Billion in Online Filings

NASHVILLE - Since the first electronic filing option was launched in March 2002, Tennessee taxpayers and tax professionals are increasingly turning to the convenience of online filing with the Tennessee Department of Revenue. In December, filings through the department’s Web portal exceeded a $12 billion milestone. At www.Tennessee.gov/revenue, all customers can take advantage of the time-saving benefits of electronic tax administration.

 

“Online filing offers 24/7 accessibility to taxpayers and has made processing of returns more efficient,” said Revenue Commissioner Reagan Farr. “This efficiency allows the department’s Processing Division to operate with 10 fewer employees than it did in 2007 while processing 173,000 more returns.”

 

In 2007, the Department of Revenue processed its one-millionth electronic transaction and surpassed $8 billion in online filings. Now, in December 2008, the department has surpassed $12 billion in online filings. Today, taxpayers can file 15 different tax returns online and they are doing it more frequently. Since 2005, the total percentage of tax returns filed online has increased from 14 percent to 25 percent in 2008. The percentage of electronically filed sales tax returns alone has nearly doubled from 21 percent in 2005 to almost 41 percent in 2008. It takes the department only two days, less than half the time it took three years ago, to post 95 percent of returns.

 

“We have been filing sales tax online for the past two to three years,” said Laurel Conley, vice president for Financial Services at Gish Sherwood and Friends, Inc. in Nashville. “The system is user friendly and easy to understand. Payment on line is very easy and efficient – much better than paper filing.”

 

The Department of Revenue continues to add to the suite of online options, increasing accuracy and saving costs and time for taxpayers. The latest update was in June 2008 with the addition of payment by credit card for F&E online minimum pay returns, estimated payments and extensions. Now, all Department of Revenue online tax filing programs accept payment by credit card or electronic funds transfer through ACH debit.

 

Electronic filing of the sales and use tax, consumer use tax, individual income tax, professional privilege tax and minimum franchise and excise tax returns and estimated payments and extensions is available via the department's Web site, www.Tennessee.gov/revenue. Bill payments and many business tax registration activities also can be completed online. Payment by MasterCard, American Express and Discover Card is available for sales and use, consumer use tax, individual income tax, professional privilege tax and bill payments with a 2.49 percent processing fee.

 

In order to assist taxpayers with compliance to electronic filing, the Department of Revenue provides computer access in its offices in Chattanooga, Knoxville, Jackson, Johnson City, Memphis and Nashville. The department also offers an electronic commerce hot line to assist taxpayers and tax practitioners at (866) 368-6374. Nashville-area and out-of-state callers should dial (615) 253-0704. All taxpayer data, whether paper or electronic, filed with the Department of Revenue is confidential data protected under Tennessee law.

 

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws established by the legislature and the collection of taxes and fees associated with those laws. The Department of Revenue collects approximately 92 percent of total state tax revenue. During the 2007-2008 fiscal year, the department collected $11.2 billion in state taxes and fees. In addition to collecting state taxes, $1.9 billion of local sales tax was collected by the department for local governments during the 2007-2008 fiscal year. Besides collecting taxes, the department enforces the revenue laws fairly and impartially in an effort to encourage voluntary taxpayer compliance. The department also apportions revenue collections for distribution to the various state funds and local units of government. To learn more about the department, log on to www.Tennessee.gov/revenue.