2009 Filing Season Update Through October 2009

Filing Season Update 3.7 million Individual Returns Processed 38% Paper (1.4 million) 38% Paper (1.4 million) 62% Electronic (2.3 million) 62% Electronic (2.3 million)

Filing Season Update Of the 1.4 million Paper Returns Filed 73% filed a Computer Generated return 73% filed a Computer Generated return 15% used our Tax Booklet 15% used our Tax Booklet 4% filed on a Flat form 4% filed on a Flat form 8% filed on Other paper (such as a web form, Xerox copy, etc.) 8% filed on Other paper (such as a web form, Xerox copy, etc.)

Filing Season Update Of the 2.3 million Electronically Filed 12% filed using iFile (275,978) 12% filed using iFile (275,978) 30% of these were iFiled by Localities! 88% filed using e-File (2 million) 88% filed using e-File (2 million)

Filing Season Update 90% of Returns were Direct Filed 90% of Returns were Direct Filed 10% of Returns were Local Filed 10% of Returns were Local Filed 73% were Refund Returns 73% were Refund Returns 19% were Tax Due Returns 19% were Tax Due Returns 8% were Zero Returns 8% were Zero Returns

Filing Season Update 44% of all refunds received a Direct Deposit 44% of all refunds received a Direct Deposit 56% of all refunds received a paper check 56% of all refunds received a paper check This is an improvement this year of 5% each way! Please continue to encourage taxpayers to use Direct Deposit – its fast, safe, and economical

Filing Season Update 99% of Electronically Filed Refunds Issued in less than 12 business days 99% of Electronically Filed Refunds Issued in less than 12 business days 88% of Paper Filed Refunds Issued in less than 30 days 88% of Paper Filed Refunds Issued in less than 30 days

Filing Season Update A delay in refunds on paper returns was expected due to budget cuts and moving the anticipated refund time for paper returns out three to four weeks.

Filing Season Update The additional delay in refunds for paper returns was not anticipated. Implementation of a new version of our data capture system brought unexpected challenges resulting in the further delay of paper return refunds Implementation of a new version of our data capture system brought unexpected challenges resulting in the further delay of paper return refunds These challenges continue to be addressed to avoid impacts in 2010 These challenges continue to be addressed to avoid impacts in 2010

Filing Season Projection Electronic Filing is always much faster and more efficient. During the 2010 filing season: Electronic Filing is always much faster and more efficient. During the 2010 filing season: Electronically filed returns (iFile or e-File) will typically be processed in one week Electronically filed returns (iFile or e-File) will typically be processed in one week Paper returns will typically be processed in about four weeks Paper returns will typically be processed in about four weeks

Filing Season Projection Direct Deposit is also faster and more efficient Electronically filed returns and paper filed returns requesting a paper refund check instead of a direct deposit will result in an additional week to process Electronically filed returns and paper filed returns requesting a paper refund check instead of a direct deposit will result in an additional week to process Add one week to the time typically required for processing Add one week to the time typically required for processing

Filing Season Update TAX strongly encourages electronic filing as the best method of filing returns TAX strongly encourages electronic filing as the best method of filing returns Electronic filing ensures faster refunds and fewer errors Electronic filing ensures faster refunds and fewer errors