LINCOLN, September 14, 2007 – The Nebraska Department of Revenue continues its commitment to provide electronic commerce solutions for the collection of tax payments and processing of tax returns. By employing the latest technologies and best practices available to taxing authorities, the department provides options that make compliance easier for taxpayers and more cost effective for state government. Programs that provide tax payment and tax return filing options through electronic methods are constantly reviewed for ways to improve them. Additionally, new technologies drives the expansion of these programs and the demand to create new ones.
In the area of tax receipts, the department’s Electronic Funds Transfer (EFT) program serves to efficiently receipt funds for the state. EFT is the movement of funds between financial institutions. Realizing the efficiencies from using EFT, many taxpayers have voluntarily agreed to remit their taxes using this payment option. In recent years, following the lead of the federal government, Nebraska, like many other states, has required certain large-dollar transactions to be made by EFT.
To process tax returns, the department offers several electronic filing choices. The primary e-file program for individual income tax is the Federal/State E-file Program, which is a joint effort between the IRS and the states that allows tax preparers and taxpayers to electronically file both federal and state tax returns. Tax returns are prepared with commercially available software, which is used by individuals and tax practitioners, and has no cost for the state. E-filing greatly speeds up the processing of tax returns, which gets refunds to taxpayers much faster than paper processing. It also features paperless methods for paying taxes and getting refunds, which also saves processing costs for the state. This program saw a 10% increase in filers for 2005 to 2006 tax years.
Realizing that Nebraska taxpayers want a free individual income tax electronic filing option, in recent years the department has been developing a state-only filing program for Nebraska residents called NebFile. This program is intended for taxpayers who filed a Nebraska return in the previous year and is for simple, resident-only returns. Even with some restrictions, a majority of Nebraskans can use this free filing option. Taxpayers can link to the NebFile program from the department’s Web site. This program saw a 36% increase in filers from 2005 to 2006 tax years.
More information about these programs and all electronic payment and filing options offered by the Nebraska Department of Revenue are availabe on our Web site. See Electronic Commerce Report at www.revenue.ne.gov/electron/e-commerce_report.pdf.