E-file - A Smart Way to do Your Taxes

Submitted by boss on Fri, 2006-02-10 12:35.

IRS TAX TIP 2006-18

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.

• Fast. No more last minute trips to the Post Office - just hit Send!
• Accurate. The electronic filing program checks for errors and necessary information, increasing the accuracy of your return and reducing the need for correspondence with the IRS to clarify errors or omissions.

• Easy. The computer software leads you step-by-step. You can usually file a state tax return at the same time you electronically file your federal return.

• Quicker Refunds. Generally, when you file electronically, your refund will be issued in about half the time it would take if you filed a paper return. Those who choose direct deposit will get their refund in even less time.
• Peace of mind. Once the return is accepted for processing, the IRS electronically acknowledges receipt of the return.
• Payment options. With electronic filing, you can file your return early but wait to pay any balance due by the April deadline. You can also pay electronically, using a credit card, electronic funds withdrawal or, in some cases, the Electronic Federal Tax Payment System.

The IRS is again offering eligible taxpayers the opportunity to electronically prepare and file their tax returns for free through the Free File Alliance, a partnership between the IRS and private-sector software companies. For information on taxpayer eligibility, access the Free File Web page on the IRS Web site at IRS.gov.

For more information on e-filing, check the IRS Web site at IRS.gov. You will also find a withholding calculator and worksheet, along with Form W-4, Employee’s Withholding Allowance Certificate, on the Web site. You may also get Form W-4 from your employer or by calling the IRS at 1-800-TAX-FORM (1-800-829-3676).

Source: Internal Revenue Service.

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