What is E-File?
E-file (or e-filing) is a "paper-free" electronic method of filing tax returns with the IRS. While this technology has been available for decades, with the popularity of the Internet catching on, as well as the IRS improving the ease of use of this service, e-filing has become commonplace in the United States.
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History of E-Filing
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Originating in the mid-1980s, e-filing was not designed for access by the general public. However, in 2003, the IRS began a new, easier to use service known as CADE. The service improved security and allowed the public to submit their documentation electronically.
Benefits
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The IRS states that e-filed tax returns are processed faster and refunds are mailed out in less time.
Anyone who makes below $56,000 annually can e-file, free of charge.
The IRS has programs to serve individuals, self-employed, small businesses, large businesses as well as charitable organizations.
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Adoption rates
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In 2007, almost 80 million people (nearly 60 percent of all taxpayers) filed electronically. The 2008 tax year saw 90 million people file their returns online. As a goal, the IRS has targeted 80 percent of all tax filings to be done through the E-file program.
Help is available
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An enormous amount of help can be located online. The IRS also provides a toll-free number for telephone support, (800) 829-1040.
Filing the form
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For the average tax payer, this process is reasonably painless and the form is filled out by answering a series of questions.
Before you begin this process it is necessary for you to gather all the information that you have, most of which should have been provided to you from your employer, such as a W2 or a 1099 form.
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