A majority of taxpayers are concerned about the security and privacy of their personal and financial information when filing their state and federal tax returns online, according to a new survey.
The survey of 1,006 U.S. adults, commissioned by tax software developer Taxsoftware.com and conducted by the research firm Ipsos, found that taxpayers were more concerned this year than last year about various methods of filing their taxes online. The survey revealed that 54 percent of the respondents said they were concerned this year about privacy and security when filing their taxes by smartphone, up from 43 percent last year. Meanwhile, 53 percent of the respondents said they were concerned about filing their taxes using a desktop computer, up from 49 percent in 2011.
In addition, 52 percent of the respondents said they were concerned about filing their taxes through a laptop computer, up from 44 percent last year. Taxsoftware.com also found that 41 percent of the respondents said they were concerned about using iPads to file their taxes, up from 31 percent last year.
However, while concerns have gone up from 2011 to 2012, there has been an overall decrease in concern since 1997.
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“When our survey was first conducted in 1997, a whopping 83 percent of Americans had worries about Internet-based tax filing,” said Taxsoftware.com spokesperson Mickey Macedo. “The lesson here is that, over time, tens of millions of people have grown comfortable filing their taxes online. Whether this year’s spike in concerns is a blip or a trend, only time will tell.”
3 Comments
Filing electronically online provides a tax return that is entered into, and processed automatically by the IRS with no action on the part of IRS employees. Returns mailed to the IRS have to be individually entered into the IRS system via an IRS data entry person.
The federal government then shares the some of the information entered automatically or manually with other governmental entities regardless of how you file. It does not matter how the information was sent to the IRS.
The biggest problem with possible loss of personal information on the tax return is when an individual uses a mobile device (smart phone, iPad, laptop, ect.) and connects to the Internet using an unencrypted WiFi system, such as in a WiFi hotspot like airports, coffee shops, etc.
Anybody sending or receiving sensitive personal data, including SS numbers, account numbers, dates of birth, login IDs, passwords, etc. should only connect to the Internet via a hardwire connection to a router, or via an encrypted wireless connection to their router. This prevents people within several hundred feet of your device from simply and easily intercepting, reading, and doing whatever they want with your information.
Failure to ever send or receive sensitive personal information is literally giving information to unauthorized interlopers in the vicinity.
Posted by: ThoseWhoServe | February 7, 2012 9:00 PM
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I think your article is interesting. It speaks of taxpayers' concerns about security - a poll of peoples' opinions. I was hoping for an article that would deliniate the reasons for lack of security and what IRS, Microsoft, etc., are doing to enhance security. Your article does nothing beyond telling us what we already know - people are concerned with security. I want to know if we NEED to be concerned and why.
Posted by: SunTaxMan | February 7, 2012 9:23 AM
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People should be concerned about their privacy. You file a federal tax return. They "share" the information with your state. The state sells the information to your muncipality for local tax purposes. SO, your confidential federal tax return information ends up right back in your hometown. Probably your personal affairs are never discussed with anyone, right?
Posted by: Unknown | February 7, 2012 7:29 AM
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