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E-file your tax return
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December 14, 1998: 2:50 p.m. ET
Pilot program will promote online tax filing, give electronic signatures to 12M
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WASHINGTON (CNNfn) - The Internal Revenue Service is launching an initiative to promote and expand electronic filing, or "e-filing," for individuals and tax professionals.
In an effort to streamline the way Americans pay their taxes, the IRS will send postcards with an e-file customer number (ECN) to approximately 12 million taxpayers in lieu of its customary tax booklet after Jan. 1. Participation in the program is voluntary.
The e-file customer number will serve as an electronic signature for taxpayers who file online, eliminating the need to file a separate, signed paper document with the IRS.
According to the IRS, roughly 15 million taxpayers filed their Federal income tax returns electronically last year. The e-file system results in faster refunds, typically delivering them in about half the time as when filing on paper. The IRS says "e-file is faster and more accurate than filing a paper return and you're less likely to receive an error notice".
The following chart highlights the software developers and tax software programs that will support the online pilot program:
The e-file number issued to selected taxpayers this year will be a one-time use number. The IRS says it will be unable to re-issue numbers to taxpayers who inadvertently lose their ECN.
Coupled with the recently unveiled ECN pilot program is the ability to make electronic payments to the IRS. Taxpayers who owe money now will be able to make payments by credit card or direct debit via American Express, MasterCard or Discover.
Taxpayers paying by American Express or MasterCard can use any of the tax software programs listed above to file their tax returns, while those who pay with Discover will be limited to Intuit's TurboTax. 
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