E-Government is the use of technology to enhance the access to, and delivery of, government services to benefit citizens, businesses, employees, and other agencies. It involves access to government information and services 24 hours a day, 7 days a week, in a way that is focused on the needs of citizens and businesses. Electronic government relies heavily on government agencies use of the Internet to deliver information and services easily, quickly, efficiently, and inexpensively. In this paper we present definition and benefits of E-Government and then introduce major E-Government applications that are: Government to Citizen (G2C), Government to Business (G2B), Government to Employee (G2E), and Government to Government (G2G). Then we will discuss the status of E-Government in Iran and finally will present a five phased plan for implementing E-Government in Iran. The plan starts with the implementation of an E-Government portal, a one door web-based gateway to all government web sites and is followed by on-line presence, interaction and transactions of all government agencies and ends with the development of virtual government organizations that only exist in cyberspace and their main focus is on the service people and business need rather than government agencies which deliver such services. We then propose some recommendations for successful implementation of E-Government in the country.