IDC Reveals Online Tax Filing Significantly Increased This Year

FRAMINGHAM, MASS., APRIL 17, 2000 – With the tax deadline still a few hours away, IDC today released research that reveals the number of people who filed electronically has increased dramatically – almost 30% from last year. Further demonstrating the increasing popularity of online filing is the fact that one-third of these filers are first-time users of electronic filing.

"There is no question that the promise of receiving a refund within two weeks is enticing many people to try electronic filing," said Gigi Wang, senior vice president of IDC's Communications and Internet research.

IDC discovered the majority of electronically filed returns are done by tax preparers, not individuals. "There is an interesting dichotomy between individuals using tax preparers and those filing electronically themselves," Wang said. "Individuals who use a professional tax preparer generally have lower earnings than those individuals filing online themselves. This shows the success of special promotions targeted at this segment. Programs such as offering loans against an anticipated refund have enormous appeal.”

IDC believes in addition to providing loans against anticipated refunds, electronic filing provides a host of other opportunities for financial institutions. These include loans to individuals who owe the government money as well as direct deposit into high-interest instruments for refunds.

IDC's findings are based on telephone surveys of nearly 1,000 U.S. households. The surveys were conducted during the week of April 10.

Get Your Free Copy of IDC's Online Tax Filing Survey

All findings from IDC's survey are presented in a report titled U.S. Households Move to Online Tax Filing. The report presents up-to-the-minute research results of this year's tax season, a profile of households that filed electronically, and a discussion of the opportunities electronic filing creates for financial institutions. To obtain a free copy of the bulletin, please email Joanne Johnson at jjohnson@idc.com or Jon Guloyan at jguloyan@idc.com.

IDC provides comprehensive, global research and advisory services on the ebusiness topics of consumer ecommerce and online financial services. These services are designed to provide action-based strategic and tactical research and advice to help you use the Web to improve your business. For more information visit http://www.idc.com/Data/eBusiness/default.htm.

About IDC

IDC delivers dependable, relevant, and high-impact data and insight on information technology to help organizations make sound business and technology decisions. IDC forecasts worldwide IT markets and technology trends and analyzes IT products and vendors, using a combination of rigorous primary research and in-depth competitive analysis. IDC is committed to providing global research with local content through more than 500 analysts in 43 countries worldwide. IDC's customers comprise the world's leading IT suppliers, IT organizations, and the financial community. Additional information can be found at http://www.idc.com.

IDC is a division of International Data Group, the world's leading IT media, research, and exposition company.

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