IRS E-filing Program History & Timeline

When taxpayers electronically transmit their income tax return it saves the IRS and state taxing agencies time and money. It is also a "green" (environmentally friendly) alternative to printing and mailing.

It costs considerably more to process paper returns into a format that is machine-readable. In fact, due in part to increased e-filing, the IRS budget actually decreased (inflation-adjusted figures) between 2010-2015. From extremely few taxpayers using the system in 1986 to becoming today’s norm, the history of e-filing demonstrates that the trend towards electronic transmission continues to grow.

E-filing has grown by leaps and bounds since its inception in 1986. It has also saved money and streamlined the process for filing tax returns. Filing with can save you money and help get you a tax refund faster than with mail.



Q&A: What is electronic tax filing?

Electronic tax filing defines the process of packaging, encrypting and transmitting a tax return digitally to the Internal Revenue Service. One of the benefits of filing electronically is that returns are received and generally processed much faster than paper filing. This allows for faster processing of tax refunds, especially when the taxpayer elects to receive their refund through direct deposit rather than a paper check in the mail.

The majority of Americans now elect to file electronically because software such as makes the process faster and easier than prior methods.