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Every year, more taxpayers discover the benefits of filing their tax return electronically. Whether you use a professional tax preparer authorized by the IRS or do it yourself on a home computer, there are many reasons to consider e-filing your tax return this year.
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E-File - Tax Filing Made Easy.About 70% of all individual tax returns use “short” tax forms (1040A or 1040EZ). Studies conducted by the IRS suggest that over ten hours are needed to prepare a 1040A tax return using paper forms. Meanwhile, several online tax software companies report that people using online tax software prepare and file their tax returns in well under an hour. In fact, about 50% of actual online tax software users completed their tax return, in one sitting, in under 30 minutes. Online tax software makes preparing taxes easy. The computer software leads you step-by-step and verifies the math. Using a personal computer with an Internet connection, online filers just answer the simple questions in tax preparation software, and the software will does the rest for you. No more last minute trips to the Post Office - just hit Send! IRS provides an official acknowledgement that your return was received. Owe money? You can authorize an electronic funds withdrawal from your savings or checking account or use a credit card. You can’t get these features with paper tax forms. Fast Tax Refunds: With IRS e-file, you can receive your Income Tax Refund in about half the time as paper filers, or even faster with Direct Deposit. With e-file, you can get your refund in 9-15 days. With paper forms, hope to get your refund in 3 to 6 weeks. Greater Accuracy, Fewer Errors: E-File tax software greatly reduces the chance for errors. You’re less likely to hear from the IRS down the road because e-filed returns are automatically checked for accuracy (99 percent accurate). If errors are detected, you or your tax preparer will receive an electronic message indicating the error and will allow the mistake to be corrected and resubmitted without penalty. Conversely, the IRS reports up to a 20% error rate in Paper Tax Return. Also, those using paper forms are more likely to receive an IRS penalty or have their payments misapplied. Peace of Mind: After e-filing your tax return the IRS provides an official acknowledgment of your tax return. You’ll get confirmation within 48 hours that the IRS received your return. This is something you do not get with paper form tax returns. And e-file is secure. The IRS reports that e-file transmissions are absolutely secure. IRS e file meets or exceeds all government security standards. And, according to the IRS taxpayers who use IRS e-file have no greater chance of being audited than those who file paper returns. If you owe money, you can file early in the season and delay electronic funds withdrawal payments to as late as April 15, 2005. Research shows that more than 80 percent of taxpayers who have tried e-file are “very satisfied” with the benefits of IRS e-file. 83 percent of individual taxpayers who use IRS e-file remained loyal and e-filed the following year. Why should I Choose E-fileOver the last few years, there have been several incentives, or even requirements, provided by the IRS and state governments to encourage tax filers to file their returns electronically. Statistics show the percentage of e-filers is on the rise. With tax return deadlines right around the corner, we want to share our thoughts on the questions we receive most often from clients about e-filing. Top 5 questions I am asked about e-Filing: #5 Do I have to e-file? No. Currently, the IRS does not require any Tax Returns to be e-filed, though several states have implemented this requirement. In the past, the state has sent a "reminder" notice that future returns should be e-filed, but have warned that paper returns filed in the future will either be rejected or subject to a penalty. This most likely means that e-filing state income tax return in these states will be mandatory, and we can anticipate that other states will add similar requirements. #4 Do I have to provide my bank account information? No. The only time your bank account information needs to be provided is if you would like your refund directly deposited into your bank account, or if you would like your payment directly drafted from your bank account. If you are hesitant to provide your bank account information to government agencies, you can receive your refund by check or if you owe, you can make your payment by mailing in a check. #3 How long does it take to e-file? Usually a return is accepted by the IRS or state within a few business days of the return being submitted. The acceptance provides confirmation that the return has been timely filed. #2 If I owe with my return, is the payment due when my return is e-filed? E-filing the return before the due date does not accelerate the due date of taxes. Payments can still be remitted separately any time before the due date of the return, even if the e-file is processed earlier. Consider the following strategy. If you are due a refund on your state return, but owe on your federal return, then e-file both returns early. You could receive your state refund in time to use it towards your federal payment due. The same holds true if you are due a refund on your federal return and owe on your state return. #1 Why should I e-file? Here are a few reasons to e-file: The risk of a return being lost in the mail or misplaced is minimized. Usually a taxpayer is not notified of a missing return until months or even years later. When a return is e-filed, confirmation of acceptance (receipt) by the IRS or state is provided within a few business days. Paper filed returns are manually entered into the government's system, meaning that an input error could trigger a tax notice. Part of the e-filing acceptance process used by the IRS and state governments includes a "pre-check" of certain items. In order for an e-filing to be accepted, these items must be correct. This greatly minimizes the chance of receiving a tax notice. Returns are processed more quickly; if you are due a refund, it will be sent sooner. Mordernized e-file Issues and SolutionKnown Modernized e-file (MeF for Partnerships) Issues and Solutions (2008 tax year)Binary Attachments
Listing more than one foreign country in Schedule B Changing the Name of the Partnership 1973 North Rulon White Blvd. M/S 6273Ogden, UT 84404 Source: - irs.gov Conventional Way for Tax FilingThe easiest and quickest way to file a return and obtain a refund, is to do this electronically--a practice already used by more than half of all taxpayers. The conventional way of filing taxes with the IRS has been opposed by online tax filing systems in recent times. Filing online will allow you to get your tax refund in as little as 10 days. The process of Online Tax Filling is simple and trouble free. The customer first prepares his tax papers personally or approaches professional tax consultants to do so on his behalf. After the tax papers have been prepared they can be effortlessly filed through an IRS e-file provider. Filing can be done online as well, but if an individual is not sure about the mechanics, it is better to seek professional guidance. Usually most tax experts will be licensed IRS e-file providers. The relevant documents are signed and retained by the customer for future reference. The IRS e-file provider then files the returns electronically on the behalf of the customers. Next, the IRS e-file provider sends the customer an acknowledgement mentioning the current status of the filing process. Online filing eliminates the need for going through tiring steps of rushing to the local IRS offices and post offices and waiting in never ending queues to post the papers before the due date. Office hopping has been completely eliminated. The only thing required is a reliable computer and Internet connection. Mistakes and errors can be corrected online in comparatively less time. Online tax filing has reduced the time gap prior to receiving Tax Refunds and papers can be printed to maintain precise records for future reference. Online tax filing also facilitates tax payments using credit cards. It has reduced back office processing time considerably. Join the millions of people who have discovered how easy, online tax filing can be. The cost will be much less, your tax forms will get to the IRS with no hand-written errors, and you'll get your tax refund in as little as 10 days. Free IRS E-file online AllianceBecause of a partnership between the Internal Revenue Service (IRS) and 19 Free File partners, including Turbo Tax Online, many taxpayers are now eligible for Free Income Tax filing. If you qualify, you can use Turbo Tax Online, or any other of the 19 Free File partners, to prepare and file your income tax return online for free. This program is known as the IRS Free File Alliance. This free tax filing program is designed for lower income taxpayers with simple tax situations and includes IRS and State tax forms and schedules. However, it is not designed for more complex tax situations such as investments, rentals, royalties, farming, foreign earned income, partnerships, s corporations, estates or trusts. In addition, twenty-one states have also created free file programs based on the Federal free tax filing program. This means you may also qualify to file your State taxes for free with the Freedom Edition tax software. Free File differs from conventional taxfiling in that Free File is an electronic tax program. You must use a computer and have Internet access to use the free tax filing service. Users enter their income tax data online and tax calculations are made by the online tax software. Completed tax returns are then sent to the Internal Revenue Service (IRS) through the efile system. Using the (IRS) e-file system allows you to get your Fast Refund. If it ends up that you owe money, you can have it deducted from your bank account on the last day of tax filing season. To file your taxes for free, go to IRS GO you can either begin your free tax filing or read more information about free tax programs. You'll find lot's of up-to-date tax information and handy tax tools, and you'll be able to get your taxes filed before it's to late. File Taxes Online Today for Free with Free IRS Efile.Once you're ready to start your taxes, you should consider the Free Efile Taxes option available to you today. Since you're here searching for information, may have already made up your mind. If you haven't, I can tell you that I have done my taxes online for three years, and I am really happy with the results, especially with how fast I get my return. The bottom line is making sure that you are paying the right taxes. This means that you should get all the refund to which you are entitled or pay the right amount to the government. Sometimes, when doing your return alone at the dining room table, you may gyp yourself. How many of us can guarantee that we understand all of the instructions and know all of the changes in tax laws? Not many. One of the great advantages of Free Tax Filing online is speed. Almost as soon as you finish your return it will be forwarded directly to the IRS. They will confirm receipt within a day or so. After that, if you are due a refund, it will come in days rather than weeks. Another advantage of filing online is that you can use the direct deposit option for a faster return. You should also consider the fact that online tax programs will help you to determine which form or forms to use. They will then walk you through the process step-by-step. Because of the way the programs are structured to ask you every important question, you may discover deductions that you might have missed. The end result is a far simpler process and far fewer headaches! Federal / State e-file for TaxpayersAs a result of a cooperative effort between the IRS and statetax administration agencies, Federal/State e-file is available to taxpayers to file their Federal and state returns electronically at the same time. It is available to you through tax professionals or in most states by filing from your home computer. Frequently Asked Questions about e-file. How does Federal/State e-file work?Federal/State e-file allows the electronic filing of both Federal and state income tax returns at the same time. The electronic filing software places your Federal and state return data in separate packets. These packets are transmitted to the IRS in one taxpayer "envelope." The IRS functions as an electronic post office for the participant state, who receives and processes the state electronic return. How will using this option benefit me?Fast Refund - Your tax return is processed quickly which means at the IRS, and in most states, you can have your refund direct deposited into your checking or savings account. Fast Processing - Your refund is received twice as fast. The IRS and participating states can process your e-file returns much more quickly than those that are filed on paper.More Accurate - Tax preparation software eliminates errors you may make, and e-file processing of the Federal and state return eliminates most errors.Proof of Filing - You can meet your Federal and state tax obligation at the same time. The IRS and state agency will let you know that your return has been received and accepted.Convenience - At IRS and in most states you can file early and pay any balance due by April 15. Can I pay both Federal and State balance in one transaction?Federal tax payments can be made via electronic funds withdrawal or credit card. Most states are accepting electronic funds withdrawal and credit card payments, but federal and state payments are not combined. For additional information contact your state e-file coordinator . How can I learn more about Federal/State e-file and/or state e-file programs?Additional information is available through the IRS toll-free telephone service (800)829-1040 or from your state tax administration office. Free Online Efiling from Your home.The Free File program is a free federal tax preparation and electronic filing program for eligible taxpayers developed through a partnership between the Internal Revenue Service and the Free File Alliance LLC, a group of private sector tax software companies. Since Free File’s debut in 2003, more than 15.4 million returns have been prepared and e-filed through the program. Free File allows taxpayers with an Adjusted Gross Income to e-file their federal tax returns for free. You may qualify for Free File if you have an Adjusted Gross Income (AGI) of $52,000 or less. If you used Free File in past filing seasons, you might not qualify for the free services for your tax year 2007 income tax return. Participation in the Free File program is limited to taxpayers with an Adjusted Gross Income of $52,000 or less. Free File preparation and e-filing services are provided by commercial tax software companies not the IRS. Members of the tax software industry provide these free taxpreparation and electronic filing services - not the IRS. Once you choose a particular company, you will be sent directly to the company's commercial website. Any questions about a particular service or company should be directed to the company providing the free service and not the IRS. Please contact the company to resolve your particular income tax issue. To find out how to contact the company, please refer to the company's website for more information about their customer service options. Companies associated with the Free File Program are affiliated with the Free File Alliance LLC, a not for profit organization. IRS does not promote or endorse any specific programs or products associated with this program. The government believes that private industry, given its established expertise and experience in the field of electronic tax preparation, has a proven track record in providing the best technology and services available. In addition, the government believes a partnership with private industry will: provide taxpayers with higher quality services by using the existing expertise of the private sector; maximize consumer choice; promote competition within the marketplace; and meet objectives in the least costly manner to taxpayers. When choosing a company, be sure to link to the company’s website through IRS.gov. By going directly to a company's website and not through IRS.gov, you may be charged a fee. To find out more about each company’s pricing policies and fees, refer to pricing information on the company's Free File home page. You are under no obligation to buy any additional products and services. During the course of preparing your free file tax return, you may choose to browse other products and services that some companies may provide for a fee. You are under no obligation to buy additional products and services. The decision to buy these services is entirely up to you. You do not need to buy these products or services as a condition for preparing and e-filing your federal income tax return for free. As long as you meet the company’s free offer criteria, you may simply prepare and e-file your federal return for free. You may exceed eligibility criteria after selecting a company. You may determine after you start preparing your tax return with a particular company you are not eligible for the company's free service and you may be subject to a fee. If this notification occurs you have the following options: 1. Return back to the IRS' Free File homepage and review the list of companies and their services and select another company you may qualify for; 2. Choose a company to complete your return but take note of the fee displayed on the company's website; or 3. Visit the IRS e-file Partners for Individual Taxpayers web page to view additional low-cost e-file opportunities. Your tax information and data will be protected -- Privacy and Security Safeguarding taxpayer data is a top priority for the IRS. 1. Tax return preparation is accomplished using proprietary software approved by the IRS; transmittal is through the established IRS e-file system. 2. Each company must attain a third party privacy and security certification. 3. Alliance companies must comply with all federal rules and regulations on taxpayer privacy for paying and free customers. These rules prohibit use of tax return data for purposes not specifically authorized by the taxpayer. Electronic Filing Options for Individuals.Choose the method of e-filing that works for you.
Tax Professional If you choose a tax professional to prepare your return, be sure to ask for IRS e-file. When your preparer electronically files your income tax return, you don't have to worry if the mail gets through. And, IRS e-file is so accurate that you are 99 percent less likely to receive subsequent correspondence from the IRS. Refunds are fast, even faster with Direct Deposit. Keep in mind there may be fees associated with tax preperation. In addition, some tax preparers may charge a fee to provide IRS e-file. More than 52 million returns have been e-filed by tax professionals during 2007. To find a tax professional that offers IRS e-file in you area, use our Authorized IRS e-file Provider Locater Service or check our e-file Provider page. Personal Computer A computer with a modem or Internet access and tax preparation software are all you need to DIY (do-it-yourself). Best of all, you can e-file from the comfort of your home 24 hours a day, 7 days a week. In 2007, over 20 million returns have been e-filed from home computers. For more information on using a personal computer and a list of IRS tested and approved software companies, see e-file Using a Computer. Free File Are you interested in preparing and e-filing your federal income tax return for free? Millions of taxpayers are eligible to use Free File. To see if you are eligible and to learn more about these free online company services, please visit our Free File page. Commercial tax software companies Disclosure PolicyThis blog is a sponsored blog created or supported by a company, organization or group of organizations. This blog accepts forms of cash advertising, sponsorship, paid insertions or other forms of compensation. The compensation received may influence the advertising content, topics or posts made in this blog. That content, advertising space or post may not always be identified as paid or sponsored content. The owner(s) of this blog is not compensated to provide opinion on products, services, websites and various other topics. The views and opinions expressed on this blog are purely the blog owners. If we claim or appear to be experts on a certain topic or product or service area, we will only endorse products or services that we believe, based on our expertise, are worthy of such endorsement. Any product claim, statistic, quote or other representation about a product or service should be verified with the manufacturer or provider. The owner(s) of this blog would like to disclose the following existing relationships. We are working as an Affiliate with H&R Block. And in return they give us a Commission. |
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