IFile 2006 User Survey Purpose Methodology Purpose of

I-File 2006 User Survey

Purpose & Methodology

Purpose of the Research • Collect market data (quantitative and qualitative): • Demographics. • Who uses I-File? Do any specific demographics emerge -- more women, more men, younger, older, lower income, higher income? • Psychographics. • What is the main reason for using I-File? What is the greatest perceived benefit of using I-File? • User satisfaction. • Were they satisfied with the tool? Would they use it again? Would they recommend it? • Feedback for improvements.

Methodology – Sample Selection • Systematic random sampling: • N=81, 281 users. • S=6, 283. • All users who filed on Tuesday from Jan. – April 17, 2006. • Tuesday randomly selected from drawing of lot of all seven weekdays.

Methodology – Survey Tool • 12 questions. • Used combination of answer ranges, Likert-scaled responses and limited open-answer options. • Estimated completion time – 10 minutes. • Administered electronically. • Issued via email. • Email addresses captured as part of I-File registration. • Link to online survey tool – quick, easy. • Timing. • Issued April 19 – to ensure email addresses were still current.

Sample Results

Overall Sample Results • • Response results: • 1, 073 responded – within one week. • 95 -percent confidence rate; minimum of +/- 5 -percent margin of error Demographics: • Gender – More women users than men. • Female – 54. 5 percent • Male – 45 percent • Age – No one group emerged as a leading market for Internet filing. • 18 -24 – 10. 3 percent • 25 -35 – 23. 7 percent • 36 -45 – 23. 2 percent • 46 -55 – 27. 5 percent • 56 -65 – 11. 3 percent • Over 65 – 3. 6 percent

Sample Results (continued) • Demographics: • Household income – No one income level emerged as a leading group of users. • Below $20 K– 13. 9 percent • $21 K - $40 K – 27. 6 percent • $41 K - $60 K – 23. 1 percent • $61 K - $100 K – 24. 3 percent • More than $100 K – 7. 9 percent • Return/new users. • Return users – 54. 6 percent • New users – 45 percent

Key Findings

Key Findings • • User frequency – Used I-File before? • 1 -2 years – 33. 7 percent • 3 -4 years – 17. 6 percent • 5 or more years – 4. 4 percent Return usage – Likely to use I-File again in the future? • Very likely – 89. 7 percent 95. 5% • Likely – 5. 8 percent Satisfaction – How satisfied with using I-File? • Very satisfied – 67. 2 percent 94. 4% • Satisfied – 27. 2 percent Referral -- Likely to recommend I-File to someone else? • Very likely – 78. 3 percent 96. 2% • Likely – 17. 9 percent

Key Findings • • Main reason for using I-File? • File online for free – 58. 4 percent • Get refund more quickly – 20. 1 percent • Ensure accuracy of calculations – 12. 5 percent Greatest benefit of using I-File? • Fast, easy to use, convenient online access – 49 percent • (All of the Above) • Convenient online access – 20 percent • Easy to use – 18. 6 percent • Fast – 6. 7 percent

Verbatims • If dissatisfied, why? • Questions needed more clarity. • Could not navigate backwards. • Can’t amend return on this program. • Online format doesn’t match up with hardcopy formats • Would like to see a running total.

Key Filing Results – 2006 Individual Tax Season • • • More than 81, 000 I-File users in 2006, versus ~69, 000 in 2005. • 17 -percent increase in I-File usage from 2006 versus 2005. ~30 -percent increase of I-File usage over past 2 years. 20 -percent increase in electronic filing (I-File & e-File) overall for 2006, versus 2005.