The Internal Revenue Service is pushing hard to get you to file your tax returns electronically. The campaign is showing early signs of success. Already in 1999, more than 10 million returns have been filed electronically. The service hopes that by 2007, 80% of taxpayers will e-file. The IRS
- Most sites guide you through the return with an interview. You are asked a series of questions, and your tax forms are automatically filled in based on your answers. Some sites don't offer an interview and instead provide you with an electronic version of the tax forms. In the chart, we've indicated for each company which is the case. Some sites with Web-based tax forms allow you to "play 'til you pay." That is, you can prepare your entire return online without paying a cent. It's only when you're ready to print or e-file that you have to cough up the credit card. Other sites provide downloadable demos you can try out on your own computer. So you can test several sites before choosing one.