Tax time is one of major events that need to be taken care of by both individuals and organizations. However, to look beyond the responsibilities in tax filing, it is a resource-consuming activity for both the IRS and tax payers.

Since the introduction of e-filing in 1987, IRS has taken an effort to bring tax filing to be paperless. The IRS has targeted 80 percent of all major tax returns to be filed electronically. In 2010 the figure is 59%, so it’s a long way to go – but it’s within reach, thanks to the cloud that makes e-filing a more accessible process to tax payers – and help storing terabytes of data (IRS data warehouse: 100TB!)

Here’s what e-filing can do for both tax payers and the IRS: Errors reduced from 20 percent to 2 percent; time reduced from 8 weeks to 8 days; cost reduced from $3.29 to 19 cents. And we are yet to mention the environmental benefits of going paperless in your tax filing.

To learn more, check out this cloud infographic by Rackspace hosting (click to enlarge):

Via Rackspace