California, Louisiana enhance state e-filing options
By Kay Bell • Bankrate.com

Electronic filing options are increasing for state taxpayers nationwide. The latest e-filing encouragement comes from California and Louisiana tax departments.

Using authorized online software, Californians now will be able to file their returns directly with the state tax office through its Internet Direct Filing Portal. The state has contracted with a software filing company to provide the direct-filing option from any Internet-connected computer, eliminating the need to download software.

All a taxpayer needs to file directly is a personal four-digit Customer Service Number. This number, provided by the California Franchise Tax Board, will serve as the filer's electronic signature when they file.

Taxpayers who filed online last year should receive a postcard in the mail with their CSN for this year's returns. Those who used TeleFile or filed Form 540 2EZ last year should get an identification number with their tax booklets. First-time online filers or those who lost their CSN can get a new one at the Franchise Tax Board's Web site or by calling (800) 338-0505.

Meanwhile, more Louisiana filers should find the price is right for electronic taxes.

The Louisiana Department of Revenue is offering free Internet filing of state returns through the tax office's Web page. The state also is providing no-cost tax assistance and electronic filing through the Volunteer Income Tax Assistance program at all of its tax offices.

Anyone with a personal computer and Internet access can go to the state's tax Web site and file for free this year, says Louisiana Revenue Secretary Cynthia Bridges. Previously, the Louisiana tax site contained links to approved commercial tax software providers, most of which charge a fee for the software or e-filing of the state and federal returns. The new online filing program is for state returns only, notes Bridges, and commercial links will remain for taxpayers who want to continue using that system to file state and federal returns together.

The new VITA option has been a pilot program between the New Orleans Regional Office and the Internal Revenue Service for the past few years, according to Bridges. Under the VITA program, filers of the federal 1040EZ and 1040A forms can make an appointment at the following Louisiana tax offices to receive free tax filing assistance:

After helping taxpayers complete their federal and state returns at the VITA clinics, the Department of Revenue will electronically file the forms at no charge. "The VITA program greatly assists our older taxpayers and those with lower incomes who cannot afford to pay for tax assistance or to have their returns filed electronically," Bridges says.

Both California and Louisiana state tax officials are hoping the new tax options will boost the number of electronic filers in both locales. Last year, more than 368,000 Louisiana returns were filed electronically. As the nation's most populous state, California received more than 2.3 million electronically filed returns last year.

This year, however, California e-filers may need a bit more patience. Recent power problems across the Golden State may mean "unexpected interruptions" of the Franchise Tax Board's electronic tax programs. But, urge California tax officials, keep trying.

-- Posted Feb. 15, 2001