Nearly Half of Consumers Plan to File Taxes Online, Reports The Conference Board and TNS

NEW YORK, March 25 /PRNewswire/ -- Nearly one half of consumers plan to file their federal taxes online this year, reports The Conference Board and TNS. This is up from 34 percent in 2005. Convenience and speed are among the top reasons why more consumers are turning to online filing.

The Consumer Internet Barometer, a quarterly report produced by The Conference Board, the global business membership and research association, and TNS, a global market insight and information group, surveys 10,000 households across the country and tracks who's doing what on the Internet.

While concerns about conducting financial transactions online have gradually abated over the last five years, such concerns have spiked this past year. Forty-two percent express concern with filing online, up from about 36 percent last year. Conversely, those who claim they are "not very concerned" or "not concerned at all" account for 33 percent, down from 38 percent last year. More women than men express concern with conducting online financial transactions.

"Online tax filing continues to gain acceptance," says Lynn Franco, Director of The Conference Board Consumer Research Center.  "A variety of tax filing options has made it easier than ever to file taxes online, and consumers are clearly drawn by the fast turnaround for refunds. However, some consumers remain wary about the security of conducting online financial transactions. But once consumers manage to clear this hurdle, they are not likely to return to old habits."

Nearly Half Have Been Filing Online for Five Years or More

This year, 47 percent of consumers intend to file their federal taxes online. And once they file online, they generally don't turn back to traditional filing. Nearly half of online filers have been filing their taxes online for five or more years – more than double the percent in 2005.

Among those not filing electronically (38 percent offline and 16 percent still undecided), the most common reason is that the individual does not do his or her own taxes. Concern about submitting personal information online is the second most likely reason. Another notable barrier is the complexity of the return.

Among those filing online, 38 percent intend to use a professional service. Another 38 percent plan to use do-it-yourself tax software. One quarter of filers intend to use IRS e-file.

Easier Filing and Quicker Refunds

Among those who intend to file online, the top reasons include: online filing is easier than filing by paper (63 percent); a faster refund (51 percent); comfort with submitting data online (32 percent). When asked for the main advantages of online filing, 55 percent said that it is quicker, 18 percent mentioned the fact that the software directs the user through the process, and 10 percent said it is cheaper than filing by paper.

Direct deposit was chosen by three out of four online tax filers as the preferred method for receiving their refunds. Only 14 percent chose to receive their federal refund by check.

About This Survey:

The Consumer Internet Barometer is based on a quarterly survey of 10,000 households. A unique sample is surveyed each quarter. Return rates average 70 percent, which ensures highly representative data. Data is weighted as well to reflect the latest U.S. household demographic information. The latest survey was conducted during the first quarter of 2010. For more information, please email [email protected] or [email protected].

About The Conference Board

The Conference Board is a global, independent business-membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org

About TNS

TNS, which recently merged with Research International, is the world's largest custom research agency delivering actionable insights and research-based business advice to its clients so they can make more effective business decisions. TNS offers comprehensive industry knowledge within the Consumer, Technology, Finance, Automotive and Political & Social sectors, supported by a unique product offering that stretches across the entire range of marketing and business issues, specializing in product development & innovation, brand & communication, stakeholder management, retail & shopper, and qualitative research. Delivering best-in-class service across more than 70 countries, TNS is part of Kantar, the world's largest research, insight and consultancy network. Please visit http://www.tns-us.com for more information.

The Kantar Group

The Kantar Group is one of the world's largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies – including the recently-acquired TNS – the group aims to become the preeminent provider of compelling and actionable insights for the global business community. Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group's services are employed by over half of the Fortune Top 500 companies. The Kantar Group is a wholly-owned subsidiary of WPP Group plc. For further information, please visit www.kantargrouptns.com.

SOURCE The Conference Board