Taxpayers in six states and the Washington D.C. will have to send paper income tax returns to different process centers this year, the Internal Revenue Service has announced. Taxpayers in Washington D.C. and the states of Maine, Maryland, Massachusetts, New Hampshire, Vermont, Virginia, will now send returns to the center in Kansas City, Mo. Read more...

Tax chain H&R Block has teamed up with Yodlee, which make application tools and financial management application, that would pull data from a variety of financial sources and automatically populate tax forms. The application is expected to be ready for a market test in April and to be available for the 2011 tax season.

With the growth of the tax outsourcing business slowed to a crawl, Xpitax, based in Braintree, Mass., has decided to move outsourced preparation back on shore, but using the same processes that the company established for its processing center in India. The process started last year and hasn't become a major effort, yet. But the company anticipates it will.