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:

  1. 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.
  2. 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.
  3. The number of D-400EZ returns filed with errors increased each year.
  4. 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.
  5. 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.
  6. 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.
  7. Software developers do not support the D-400EZ. As a result the D-400EZ cannot be prepared using a software package or filed electronically.
  8. 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.