The Tax Exchange Format (TXF) is a standardized, ASCII-based file format specifically designed for the electronic transfer of tax-related financial data between different software applications. Developed primarily to facilitate the import of investment and financial information into personal tax preparation software, TXF allows users to export data from brokerage accounts, financial institutions, or accounting software and import it directly into programs like TurboTax, H&R Block, or TaxAct. The format uses a structured tagging system where each line begins with a specific tag (such as 'N' for name, 'D' for date, or 'A' for amount) to define the data fields. By using TXF, taxpayers avoid the tedious and error-prone process of manual data entry for hundreds of individual stock trades or interest payments. Although newer formats like OFX and direct API integrations have become more common, TXF remains a legacy standard for interoperability in the financial and tax preparation industry.