What are the costs of filing returns electronically?
• Expenditures to upgrade computers and communications equipment. • Charges for electronic filing software (some packages are available for less than $1,000 and include unlimited transmission of both federal and state tax returns). • Transmission fees (generally $1 to $5 per return if not included in the price of the software). • Telephone long distance charges. • Costs of changing procedures for preparing tax returns. For example, additional data entry may be required. If a return is rejected, the return must be corrected immediately rather than after the filing season.
