Digital MarketingStrategiesOnline Tax Filing Slow to Catch On

Online Tax Filing Slow to Catch On

While online shopping and trading have become the newest hobbies of Internet users, online tax filing still has a long way to go.

While online shopping and trading have become the newest hobbies of Internet users, online tax filing still has a long way to go.

Preparing and filing taxes online has faced abysmally slow consumer adoption rates, according to research done by Jupiter Communications. The research found that, much like online shopping, consumers are worried about their privacy and the security issues associated with doing their taxes online.

Although paper tax returns are quickly becoming a thing of the past, Jupiter found that submissions via the Internet will not represent a significant portion of returns in the near future. A poll by Jupiter and NFO found that less than 2 percent of Internet users plan on preparing their taxes over the Internet. That is less than 0.5 percent of all expected individual returns.

“Contrary to popular belief, Web-based tax filing is only a tiny part of what is defined as electronic filing. The increase in electronic filings is more likely due to a rise in the number of desktop software users who are using dial-up filing options, rather than the widespread migration to Web-based solutions,” said Jupiter’s Marc Johnson. “While consumers show they are becoming more comfortable with electronic filing options, they are still hesitant to rely on the Web for such an important transaction.”

According to Jupiter, the shift to Internet tax filing will also be slowed because the majority of consumers only file their taxes once a year. The only significant change in tax filing is the 3.5 percent of consumers that are moving away from pencils and paper and using software to file.

Related Articles

How financial services CMOs should approach regulation

Digital Transformation How financial services CMOs should approach regulation

2w Al Roberts
How are traditional banks competing for customers in a digitally disrupted industry?

Finance How are traditional banks competing for customers in a digitally disrupted industry?

1m Al Roberts
5 cross-platform automation tools to improve your team's efficiency

Collaboration 5 cross-platform automation tools to improve your team's efficiency

1m Tereza Litsa
How challenger banks are revolutionizing the banking customer experience

Finance How challenger banks are revolutionizing the banking customer experience

3m Al Roberts
8 ways AI can enhance your marketing strategy today

AI 8 ways AI can enhance your marketing strategy today

3m Marcela De Vivo
Why banks are becoming customer-centric organizations

Analyzing Customer Data Why banks are becoming customer-centric organizations

1m Al Roberts
Five tools to automate lead nurturing in sales

Ecommerce & Sales Five tools to automate lead nurturing in sales

2m Tereza Litsa
How CMOs are using apprenticeships to bridge the digital skills gap

Marketing How CMOs are using apprenticeships to bridge the digital skills gap

2m Christian Doherty