THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, February 8, 1996 TAG: 9602080415
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Medium: 62 lines
Taxpayers can use any of nine tax-preparation computer programs to file returns with their personal computers this year.
Wednesday's announcement by the Internal Revenue Service represents an expansion of a test last year for subscribers of CompuServe and America Online. The IRS expects about 100,000 on-line returns, up from fewer than 1,400 last year.
The advantages, according to the IRS, are faster refunds - three weeks compared with 40 days for a paper return - and greater accuracy.
Here's how it works:
Taxpayers with access to personal computers purchase any of nine software packages and complete their returns using the software. They then follow instructions in the computer program for electronically transmitting their returns to an on-line middleman - either CompuServe or one of five other transmission companies. America Online isn't participating.
Software packages offering on-line filing are Intuit's TurboTax for Windows; Intuit's MacInTax; Kiplinger TaxCut; Computer Associates' Simply Tax; Prep 1040 Personal; GAC TAXPRO's The GAC Little ELF; AM Softwares' AM-TAX; Vertec Solutions' Cybertax; and Auto Tax.
CompuServe is handling Kiplinger TaxCut returns, as is Universal Tax Systems. Universal Tax Systems also is transmitting TurboTax and MacInTax returns. The other four transmission services, and the programs they handle, are Electronic Filing Service: Prep 1040; GAC: GAC Little Elf; Tax Link: Auto Tax; and Nelco: AM-Tax, Cybertax and Simply Tax.
Prices of the software vary from $20 to $80. There also can be an additional fee - starting at $15 - for electronically transmitting returns to the IRS.
The transmission company converts a return into a format readable by IRS computers and sends it electronically to the agency. The IRS will notify the taxpayer through the on-line middleman if the return is accepted or, if not, what must be corrected.
After the IRS accepts a return, the taxpayer follows up by mailing W-2 forms and a one-page signature document - Form 8453-OL - to the transmittal company handling the return. The transmitter submits the client's documents to the IRS.
Each on-line taxpayer can transmit up to three returns. For example, a married couple could transmit a joint return and returns for two children.
As with paper returns this year, on-line filers can get refunds deposited into checking or savings accounts. For those who owe taxes, some of the transmission companies accept credit cards, which the IRS does not yet do.
The IRS says it has taken steps, including background checks of the transmission companies, to ensure that tax information is not misused. Companies misusing the information are subject to criminal and civil penalties and would be barred from the program, agency spokesman Don Roberts said. MEMO: More information is available on the IRS' home page on the Internet's
World Wide Web _ http://www.irs.ustreas.gov
KEYWORDS: INCOME TAX RETURN IRS COMPUTER PROGRAM SOFTWARE by CNB