Department Discontinues Use Of Form D-400EZ
Effective for tax year 2002, the Department has discontinued the use of Form D-400EZ. All individual income tax returns must therefore be filed on Form D-400.
The Department decided that it would be in the best interest of taxpayers to eliminate the D-400EZ and that elimination of the form would enable the Department to provide better service. The Department reached this decision after reviewing the following factors:
- The D-400EZ return was intended to be simple to complete but many taxpayers found it to be no easier than the D-400 due to the personal exemption and standard deduction adjustment required by law.
- The number of D-400EZ returns filed with the Department decreased each year. Of the 3.5 million individual income tax returns filed for tax year 2001, less than 9% were D-400EZ returns.
- The number of D-400EZ returns filed with errors increased each year.
- Many of the taxpayers who used the D-400EZ did not meet the requirements for filing the return. The return was designed for taxpayers who were full-year residents, claimed no dependents, claimed no tax credits, claimed the federal standard deduction, and paid no estimated tax. The filing of D-400EZ returns by taxpayers who were not eligible to use the return resulted in processing delays and errors.
- Many taxpayers who filed a D-400EZ later filed an amended D-400 return claiming a tax credit or deduction not available on the D-400EZ. This resulted in processing delays and errors.
- If the processing problems associated with the D-400EZ were eliminated, the personnel required to resolve these problems could be allocated to providing better taxpayer service.
- Software developers do not support the D-400EZ. As a result the D-400EZ cannot be prepared using a software package or filed electronically.
- For tax year 2002, the Department is offering direct deposit of
refunds for returns that are filed electronically. Most D-400EZ
returns show a refund due. The Department anticipates that many
of the former D-400EZ filers will choose to file their returns electronically
to be able to receive their refund by direct deposit.