e-filing Your Tax Return
Why should you e-file?
A report released by the Treasury Inspector General for Tax Administration (TIGTA) http://treas.gov/tigta/ in Sept. of 2009 indicated that the error rate for paper-filed returns is considerably higher than for e-filed returns. The report estimates that there is a 25-percent error rate on paper-filed returns, where the error rate for e-filed returns is historically less than 2.5 percent. You might find it interesting to know that it costs the Treasury 35 cents to process an e-filed tax return versus $2.87 for paper-filed tax returns. Based on these estimates, and the estimated number of paper-filed returns, the Treasury spent a staggering $192 million just on paper return processing! TIGTA's report is available at tinyurl.com/lmwflg
The Internal Revenue Service announced that they received nearly 90 million tax returns through e-file in 2008. Each year, more taxpayers are learning how safe, convenient and timesaving e-filing can be.
Reasons for e-filing your tax return(s) include:
- You'll receive your refund in half the time.
- E-filing is the most accurate and fastest way possible to file your tax return.
- You receive an acknowledgement from the IRS, so you know your return has been received and accepted.
- You can file your federal and state tax returns together in most states.
- You can pay your balance due electronically when you use an authorized IRS e-file provider.
Numerous security measures are in place to ensure your tax information is as secure OR more secure than tax returns sent in the mail. Specifically:
- Only pre-approved software can be used to transmit your tax information to the IRS.
- To transmit your tax return electronically, each tax professional must be an "Authorized IRS e-file Provider". The IRS conducts background checks, including fingerprint verification, of all approved electronic return originators (EROs).
- The information transmitted is in a format that is hard to read compared to traditional paper tax returns.
If you haven't filed electronically before, consider doing so this upcoming tax season. Remember, SmarTax & Accounting, Inc. will e-file your tax return(s) for free!