Department Announces New Electronic Tax Services

Date: 1/13/2003

RALEIGH -- Secretary Norris Tolson announced several new electronic services offered by the North Carolina Department of Revenue that will make filing and paying taxes faster and easier for state taxpayers.

For the first time, individual income taxpayers who file their state and federal returns electronically can have their state tax refunds deposited directly into their checking or savings account. Direct deposit offers a safe, fast and convenient alternative to taxpayers who file electronically.

"Our goal is to make filing and paying state tax returns faster, easier and more efficient," said Tolson. "The services we are able to offer this tax season and others that our Department is developing will make a real difference for taxpayers."

In 2001, more than 1.2 million North Carolina individual income tax returns were filed electronically. In the 10 years North Carolina has participated in the Federal/State Electronic Filing Program, the state has consistently ranked near the top nationally in the number of individual income tax returns filed electronically.

Taxpayers who have a personal computer and a modem can file their federal and state returns electronically by using tax preparation software or an on-line service. For taxpayers who don't have personal computers, many tax professionals will file federal and state returns electronically for a fee -- even if taxpayers prepare their own return.

Electronic filing is more accurate because the returns are prepared with software that checks and verifies all calculations -- reducing the number of mathematical errors. Typically, electronic returns requesting a refund are processed within four weeks after the Department receives them -- less time than it takes using a traditional paper return.

Tolson also announced that state individual income taxpayers can use a bank draft, credit or debit card to pay their 2002 taxes through the Department's new 'E-Pay' system. This service is available to taxpayers who file electronically and those who file paper returns.

The Department now offers businesses the option of filing their sales and use tax returns and paying their tax electronically through the new 'E-File' system. Business taxpayers who pay their sales and use taxes monthly, semimonthly or quarterly can now pay by bank draft, Mastercard or Visa.

Valerie S. Thornton of the Internal Revenue Service also joined Tolson to announce some of the new services offered by the Internal Revenue Service that will benefit North Carolina taxpayers as well.

Taxpayers can visit the Department's website at to get more information about the new services offered by the North Carolina Department of Revenue. The website's 'Electronic Services' section provides details about 'E-Pay' and 'E-File'.


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