Skip to content
SuperMoney logo
SuperMoney logo

Telefile: What It Was, How It Worked, and Why It’s No Longer Available

Last updated 03/23/2024 by

Alessandra Nicole

Edited by

Fact checked by

Summary:
Telefile was a service introduced by the federal government and some state governments in the late 1990s, allowing taxpayers to file their taxes over the phone. Despite its convenience, Telefile became obsolete with the rise of internet-based tax filing systems. This article explores the workings of Telefile, its discontinuation, eligibility criteria, and the shift towards electronic filing methods.

What was telefile?

Telefile was a service introduced by the federal government and some state governments in the late 1990s, enabling taxpayers to file their taxes over the phone.

How the federal telefile worked

Telefile was provided by the Internal Revenue Service (IRS) from 1997 to 2005, allowing taxpayers filing IRS Form 1040EZ to submit their tax returns via touch-tone phone. However, with the general shift towards electronically filed tax returns, Telefile was discontinued.

State telefile systems

Many states followed the federal government’s lead in offering telefiling services, with processes and technology similar to those used by the IRS. Some states, such as Pennsylvania and Wisconsin, still allow the filing of business taxes by phone.

Why is telefile no longer available?

Telefile, presented as a convenient service for taxpayers with simple tax returns, was replaced by electronic filing in 2005. The IRS’s move towards electronic filing aimed to streamline the tax filing process and reduce manual errors.

Who was eligible for telefile?

Telefile eligibility varied by state, and taxpayers could check their state revenue or tax authority website for information. With the rise of electronic filing methods, e-filing has become the primary means of submitting tax returns, offering convenience and efficiency to taxpayers.
WEIGH THE RISKS AND BENEFITS
Here is a list of the benefits and drawbacks to consider:
Pros
  • Convenience for taxpayers with simple tax returns
  • Quick and easy filing process
  • Accessible for individuals without internet access
Cons
  • Discontinued due to the rise of electronic filing
  • Limited eligibility criteria
  • Not suitable for complex tax situations

Frequently asked questions

Why was Telefile introduced?

Telefile was introduced to provide taxpayers with a convenient alternative to filing their taxes by mail, allowing them to file over the phone.

What was the eligibility criteria for Telefile?

To be eligible for Telefile, taxpayers typically had to meet certain criteria set by the IRS or their state tax authority, such as filing Form 1040EZ and having a simple tax return.

Is Telefile still available?

No, Telefile is no longer available as it was discontinued by the IRS in 2005. Taxpayers now primarily use electronic filing methods to submit their tax returns.

Key takeaways

  • Telefile was a service introduced in the late 1990s, allowing taxpayers to file taxes over the phone.
  • With the rise of internet-based tax filing, Telefile became obsolete and was discontinued.
  • E-filing is now the primary method of tax submission, offering convenience and efficiency.

Share this post:

You might also like