Gov. Heineman Announces Growth,
Efficiency of State Tax E-filing
(Lincoln, NE) Gov. Dave Heineman reminded taxpayers of a convenient way to file taxes and announced that electronic filing in 2004 increased by more than 11 percent over the previous year. More than 331,000 Nebraska taxpayers have already used e-filing this year to file state income tax returns.
“The ability to file and pay for taxes online is another way our state is working on efficient approaches to government,” Gov. Heineman said. “E-filing is a quick, convenient way to ensure taxes are filed that also helps to cut costs at the state level.”
Known as e-filing, electronic filing allows taxpayers who submitted a state tax return last year to file their Nebraska short form return (Form1040NS) free via the Nebraska Department of Revenue’s Web site. Various e-filing options are also available for those using other tax forms.
In 2004, the state received 400,219 electronic income tax filings, which was up 11.17 percent from returns filed during the previous year. Paper filings decreased by 9.5 percent to approximately 418,300 last year, according to statistics compiled by the Department of Revenue (DOR).
The increase in electronic filings has helped the department achieve greater efficiency by reducing reliance on temporary workers at tax time. Numbers of seasonal employees total 66 this year, which is down from 150 a decade ago. Better technology, streamlining, e-filing and tax payments made via electronic funds transfers have also helped the department trim full-time staff needs to 100 employees, down from 120 a decade ago. Last year, DOR received $2.236 billion in electronic funds transfers, up from $2.036 billion the previous year.
State Tax Commissioner Mary Jane Egr said, “E-filing is not only quicker and more efficient, it reduces the risk of errors and provides almost immediate confirmation that the return has been received. Taxpayers who are entitled to a refund see the money deposited in their bank account within 5 to 10 business days, if they e-file and choose the direct deposit option.”
DOR still expects to receive 225,000 pieces of mail during the week of April 15, and receives an average of approximately 1.5 million pieces of mail each year. Links to free federal e-filing programs, as well as commercial e-filing programs for state and federal taxes are available on the DOR Web site at www.revenue.ne.gov.
