Department of Revenue Exceeds One Million E-File Transactions
NASHVILLE, Tenn. - Tennessee taxpayers are increasingly taking advantage of the convenience of filing taxes online with the Tennessee Department of Revenue. In 2007, the Department of Revenue processed its one millionth e-file transaction and surpassed $8 billion in online filings.
“The State of Tennessee is striving to make online state resources more readily available across departments and agencies,” said Revenue Commissioner Reagan Farr. “E-filing is one of the department’s top priorities because of the convenience, security and efficiency it provides. We encourage all customers to take advantage of the many benefits of electronic tax administration.”
Since the first e-filing option, individual income tax, was launched in March 2002, online filing has grown dramatically, reducing postage and processing costs to the state and providing a convenient option for taxpayers and practitioners. During fiscal year 2001-2002, the first year of service, more than 1,000 filings totaling nearly $257,557 were filed online. During fiscal year 2006-2007, the number of filings increased to 422,000 totaling over $3 billion.
“I encourage taxpayers that currently file a paper return to try e-filing. E-filing offers increased accuracy, which reduces the number of errors and lowers filing costs for both parties,” Farr said. “We expect the volume of transactions to continue to increase as more taxpayers take advantage of e-filing and join a growing base of satisfied customers.”
The Department of Revenue continues to add to the suite of e-file options to help taxpayers and tax practitioners save time and eliminate errors. In 2007, payment by credit card was added to sales and individual income tax. Also, popular payment warehousing was added to the online sales tax application, which allows taxpayers to complete a tax return in advance and schedule the payment to be processed on the due date.
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 2006-2007 fiscal year, the department collected $11 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 2006-2007 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.