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.