Tennessee Department of Revenue Exceeds One Million E-File Transactions

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 tax filings. "The State of Tennessee is striving to make online state resources more readily available across departments and agencies," said Reagan Farr, Commissioner of the Tennessee Department of Revenue. "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 that totaled over $3 billion.

"I encourage taxpayers who currently file a paper return to try e-filing," continued Farr. "E-filing offers increased accuracy, which reduces the number of errors and lowers filing costs for both parties. 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 at http://www.Tennessee.gov/revenue. Bill payments and many business tax registration activities also can be completed online. Payment by MasterCard, American Express, and Discover 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 hotline 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.