DEFINITION of 'Telefile'
A tax service provided nationally by the IRS from 1997-2005 that allowed taxpayers filing form 1040EZ to phone in their tax returns with a touch-tone phone. Telefile was provided as a service of convenience for taxpayers with simple tax returns. The Telefile service worked by letting taxpayers dial the numbers on their tax return directly into the phone to report their income.
BREAKING DOWN 'Telefile'
Telefile was not a service that could be ordered; eligible taxpayers automatically received the Telefile package in the mail. It was first tested in Ohio and its service was eventually expanded to include self-employed filers. Telefile was replaced in the U.S. by electronic filing in 2005, but is still in use in Canada.