Where Does Your State Fit In?
As of August 1, 2005, 13 states have been issued state e-file mandates.

Alabama
Tax professionals who prepared 250 or more Alabama state tax returns in calendar year 2004, and used tax preparation software, were required to e-file all eligible returns. This threshold dropped to 100 returns for calendar year 2005 and will drop to 50 returns for calendar year 2006.

California
Tax professionals who prepare more than 100 California state tax returns annually, and use tax preparation software to prepare at least one, must e-file all returns. As of January 1, 2005, a $50 per return penalty is charged to those practitioners who do not comply.

Connecticut
Tax professionals who prepare 200 or more Connecticut state tax returns for tax year 2004 will be required to e-file all tax year 2005 returns. This threshold will drop to 100 returns for tax year 2005 and 50 returns for tax year 2006.

Massachusetts
As of February 14, 2004, all tax software generated forms mailed to the Massachusetts Department of Revenue must contain a 2-D barcode. In addition, tax professionals who prepare 200 or more original Massachusetts Forms I and I-NR-PY the previous calendar year are required to e-file all personal income tax returns. This threshold dropped to 100 for tax years following January 1, 2005. An exception to this rule applies to those practitioners who will prepare less than 25 original returns the previous calendar year.

Michigan
Tax professionals who prepare 200 or more Michigan state tax returns for the prior year are required to e-file all eligible returns.

Minnesota
Any business that prepared more than 100 Minnesota individual tax returns for the previous tax year, must e-file all individual tax returns.

New Jersey
All practitioners who file 200 or more New Jersey individual tax returns for the prior year must file them electronically.

New York
Tax professionals who prepare 200 or more 2004 New York state tax returns in calendar year 2005, and will use tax preparation software to prepare at least one 2005 return, will be required to e-file all eligible returns after January 1, 2006. This threshold will drop to 100 returns for tax years following January 1, 2007. A $50 penalty per return will apply to those practitioners who do not comply. Returns filed on paper with a 2-D barcode will be considered e-filed for tax year 2005, but not for years that follow.

Oklahoma
Tax professionals who prepare 50 or more Oklahoma state tax returns are required to e-file all returns the following year.

Rhode Island
All software developers who provide tax preparation software for the state of Rhode Island must support 2-D barcoding or electronic filing.

Utah
As of January 1, 2005, tax professionals who prepare 101 or more Utah state tax returns in a calendar year are required to file all returns by e-file or scan technology.

Virginia
Tax professionals who prepared at least 200 individual tax returns for any taxable year beginning on January 1, 2003 or at least 100 tax returns for tax years beginning on or after January 1, 2004, must e-file or utilize scan technology for all individual returns.

Wisconsin
Tax professionals who prepare 100 or more Wisconsin state tax returns are required to e-file all eligible returns.

For additional information about penalties and eligibility requirements, including opt out processes, check with the Department of Revenue for your state.

From September 2005