Utah will participate in a pilot project that will allow Utahns to file both state and federal tax returns electronically through tax preparers.

During the first year of the pilot project, a small group of taxpayers - possibly just state Tax Commission's employees - will participate. Eventually, all Utahns who file their federal returns electronically will have the same option for their state returns.Both state and federal returns would go to the Internal Revenue Service.

The Tax Commission said that by consolidating processing of returns with the IRS, it hopes to save personnel, paper and administrative costs and improve accuracy of state returns.

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Electronic filing is available through IRS-approved tax preparers.

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