Monday, January 2, 2012

Online Taxes: Why is E-file so Important to the IRS?

Why is E-file so important to the IRS? Returns filed electronically are more accurate and enable faster refunds, thus improving service for taxpayers.:

a) About half of all taxpayers use paid tax preparers to file their tax returns.

b) Approximately 97% of all returns can now be e-filed.

c) Electronic returns go through an “error check” process. A valuable result of this increased precision is fewer IRS notices resulting from input errors.

d) The IRS acknowledges e-filed returns and extensions with an electronic receipt.

Based on their goal and the facts, IRS has partnered with a list of companies to offer the E-file service for free. There is a growing number of companies that are offering e-file services for free, however, each have certain criteria that has to be met. For example, if the adjusted gross income (AGI) is lower than $57,000, then your e-file is free but you will incur a charge if it is higher. Or some services make the resident state or age part of the criteria as to whether the free file is allowed. These are a few of the differences in the criteria used by the various free-file service providers.

Online Tax Pros is a participant in such a program and E-file is offered as a free service for federal income tax returns if the client follows the link directly from the IRS free e-file page. However an additional fee is charged for state preparation.

Online Tax Pros has created a system that will ensure that your tax return is filed on time and as accurate as possible and with the best security that is available to protect your personal information.


  1. Valid point! I always find your blogs very informative.
    If you e-file you should receive your refund within 2 weeks. Who doesn’t want to his/her money faster?
    E-filing is made very easy so I hope paper filling will become a rarity.
    Also, it should save tax payers some money by making IRS work more efficient.

    1. All great points, Monika!

      Thanks for posting, and if you want to promote your website you can always put your link at the end of your comments!