St Paul (MN) - Minnesota's Department of Revenue is predicting that the state will be the first one in the country to receive a 70% rate of e-filed taxes, marking a new record for the state and going beyond what is expected for the other 49 in 2007.
"Minnesota has been a leader in electronic filing for many years. We look forward to building on our success as more and more people discover how e-file can simplify tax time," said Minnesota's Department of Revenue Commissioner Ward Einess.
Last year, Minnesota was the runner-up in the race of e-filers, with 66% of taxpayers turning in their tax documents online. It was outpaced by Iowa, which touted a share of 66.5%. However, Minnesota expects even more growth this year, projecting nearly two million electronically filed returns this year, up from 1.6 million in 2006.
Tax filing software has become one of the most widely used electronic platforms among adults in the U.S. However, the IRS requires most citizens to pay a fee for filing electronically, even though it is the more cost-effective option for them.
The fee has led many people to still send in the physical tax forms through regular US mail, even though they may have used a tax filing software program that can easily process the electronic filing. Of course, despite the extra cost, the expedient processing and faster return time for refund checks has made electronic filing a popular decision for millions of Americans throughout the country.