What Is IRS E-File?
Nearly 99 million taxpayers filed tax returns electronically in 2010, a 10 percent increase over the previous year, reports the Internal Revenue Service. Electronic filing is increasingly gaining widespread acceptance among Americans. With IRS-approved e-file products offered by dozens of major websites such as TurboTax and H&R Block, taxpayers can easily prepare and file their returns from the comfort of home.
Other People Are Reading
-
The Facts
-
E-file is a service designed by the IRS that establishes specific guidelines and requirements for electronic filing of income tax returns. The IRS e-file system mandates which taxpayers are eligible to use the electronic filing service and sets software requirements for third-party developers to ensure that their products are compatible with the IRS system.
Availability
-
E-file services are available for individual taxpayers, businesses and self-employed individuals as well as corporations, tax professionals, charities and many other tax filers.
-
Individual Taxpayers
-
If you are an individual taxpayer and earn less than $56,000 a year, you may qualify to use Free File, a service developed by the IRS in cooperation with third-party tax preparers. If you are not eligible to use Free File, the IRS provides a link on its website to help you locate an authorized e-file provider. All information submitted through e-file services is guaranteed to be secure and confidential.
E-file Providers
-
Many online tax preparation services meet the e-file standards established by the IRS. You input your tax information directly into Web-based forms at the provider's website or you can download software onto your computer and submit your return over the Internet. Additionally, boxed software is available at office supply stores and major retailers such as Walmart. You install the software on your computer, prepare your tax return and then submit it via the Internet. All tax preparation software must meet the stringent e-file standards adopted by the IRS.
Benefits
-
Using an electronic filing service makes tax filing more efficient and accurate. You don't have to worry about careless math mistakes because the filing software handles all calculations for you. The IRS receives your return instantly and you receive an email receipt conforming that you submitted your taxes. A traditional paper return can get lost in the mail or it may take weeks for the IRS to process the return into its database. E-filing results in much faster processing, which speeds up your refund, if you are expecting one.
-
References
- Photo Credit Comstock/Comstock/Getty Images
