January 8, 2004

With a new tax season upon us, State Treasurer Jay B. Rising is encouraging Michigan taxpayers to file their 2003 individual income tax returns electronically. E-filing is efficient, safe, a great way to get your refund faster, and saves the state tax dollars! Individuals can e-file from their own personal computer or through their tax preparer. Qualifying Michigan taxpayers will even be eligible to e-file for free. "The Department of Treasury is continually looking for ways to improve efficiencies, reduce costs, and enhance the state's individual income tax filing process," said State Treasurer Jay B. Rising. "E-filing is a win-win situation, in that it offers several benefits to the taxpayer while saving state tax dollars, by reducing processing costs."

Taxpayers who choose e-file will experience the following benefits:

• Refunds on error-free returns are received within seven business days.
• Two-thirds of all errors (computation and data entry) are eliminated.
• E-filing may be free for qualified taxpayers.
• E-filing is secure. Returns are submitted over secure telephone lines. Federal and State returns can be filed at the same time.
• Taxpayers receive electronic confirmation that their return has been accepted. E-filed returns enjoy an outstanding acceptance rate of better than 99.9%.
• The possibility of theft or compromise of a return, or of refund checks, is virtually eliminated.
• Approximately 95 percent of all Michigan Income Tax returns are eligible for e-file.

Beginning in January of 2004, the Department of Treasury is requiring that all tax professionals, who prepare and submit more than 200 Michigan income tax returns, file those returns electronically. This initiative is expected to increase participation in e-file by more than 50%.

Several software development companies have also agreed to offer free e-filing to qualifying Michigan taxpayers. Links to each of the companies' web sites will soon be available at www.MIfastfile.org. It is important to note that the Department of Treasury does not endorse any of these companies or their products, and taxpayers must meet certain income requirements to qualify to e-file for free.

Individuals can also e-file their Michigan income tax return from the comfort of their home or office, by using store-purchased software. Last year, more than one-third of all Michigan taxpayers chose to file their tax returns electronically.

For more information, including downloadable 2003 Income Tax Forms and Instructions, visit the Michigan Department of Treasury web site at www.michigan.gov/treasury. To learn more about electronic filing, including free e-file opportunities, visit www.MIfastfile.org.