WATERLOO -- Iowans are turning to their computers to file their tax returns at an unprecedented clip.

According to the latest estimate from the Internal Revenue Service, more than seven in 10 Iowa taxpayers had filed their returns electronically, as of the end of October.

"That continues a record breaking trend in Iowa and across the country," IRS spokesman Christopher Miller said Thursday.

The estimated 72 percent of Iowans who e-filed their tax returns dwarfed the national rate of 58 percent, although the national rate was 12 percent higher than 2007, the release said.

"Historically, Iowa has been at or near the top of the list," Miller said. "Iowans seem to understand that e-filing is the fastest and easiest way to file our taxes."

The IRS said about 90 million of 155 million tax returns sent in by U.S. taxpayers were filed via computer. Of that number, nearly 27 million were filed from home computers, up from 19 percent from 22.6 million in 2007.

The quick turnaround for refunds is a major motivation to file electronically, said Paul Nielsen, a Cedar Falls tax accountant.

"In Iowa, I think one of the things is that if you have a refund, you get it back so much quicker e-filing than if you file a paper return," Nielsen said.

Overall, the IRS issued 107 million tax refund payments in 2008, up nearly 2 percent from 105 million refund payments for the same time in 2007, the agency said. As of Oct. 31, the average refund for 2008 was $2,400, up 4 percent from $2,309 at the same time in 2007.

There are a couple of other likely motives for e-filing, Nielsen said.

"E-filed return is much more accurate than the paper return," he said. "I'm not sure I agree, but that's what they say. The other one, and I certainly agree with it, is that with an e-filed return, you receive an acknowledgement that they received the return."

In the past, some returns could not be filed electronically, but that isn't so much the case any longer, Nielsen said.

"The number (of returns that cannot be e-filed) has gone to almost nothing," he said. "I've never run into one."

Nielsen said Iowa, at least in recent years, has a leader in terms of the percentage of e-filed tax returns.

He said he wasn't sure why.

"I know they've made a real push over the years to get preparers to use the e-filing," he said.

Contact Jim Offner at (319) 291-1598 or jim.offner@wcfcourier.com