IRS e-file This Year

People who want their tax refunds faster and their tax returns more accurate should use IRS e-file. This year, IRS e-file even offers people who owe money several options to "file now, pay later."

The IRS’ electronic filing program, called IRS e-file, offers people increased ease of filing, speedier delivery of refunds and more accurate tax returns. Those who use e-file will get their refunds in half the time as paper filers, even faster when deposited directly into a bank account. Since e-filed returns are more accurate, there’s less chance people will hear from the IRS about mistakes on their returns.

"This year, IRS e-file offers additional benefits to those who owe money with their returns," explained Bob Barr, IRS e-file executive. "By providing bank information when they file electronically, people can direct when they want their payment made to the U.S. Treasury." Also for the first time, taxpayers can choose to pay their taxes with a credit card.

Payments can be made anytime after the tax return is filed until April 15. "This feature will let people file early, have the peace of mind knowing their returns have been accepted by the IRS, and manage their finances without waiting until the last minute to file and pay," explained Barr.

There are several ways to use IRS e-file. People can ask their tax professional to e-file their returns. They can use their personal computer and commercial tax preparation software to e-file from home. In some cases, people with simpler tax returns can use their telephones to file if they get a TeleFile booklet in the mail.

"Last year, more than 24 million returns, or nearly 20 percent of all returns, were sent to the IRS electronically," said Barr. "It’s our goal to make e-file the preferred way to file with the IRS." The accuracy, speed of refunds, and ease of filing are benefits many people have noted in previous years. "We think IRS e-file offers even more this year since people who owe money can file at any time during the tax season and pay by April 15 using a credit card or authorizing a withdrawal from their bank account. And, of course, people can still e-file and send a paper check if they choose," Barr added.

E-file Now - Pay Later

The Internal Revenue Service offers a convenient filing option for people who like to prepare their own tax returns using a personal computer. With tax preparation software available commercially and their computer modems, they can file their taxes with IRS e-file.

IRS e-file, the IRS’ electronic filing program, offers people increased ease of filing, speedier delivery of refunds and more accurate tax returns. Since e-filed returns are more accurate, there’s less chance people will hear from the IRS about mistakes on their returns.

"People can e-file from their PCs whether they expect a refund or owe money," said Bob Barr, IRS e-file executive. "Last year, nearly 1 million people filed their tax returns using this option - nearly two and a half times the number in 1997." Those who use e-file will get their refunds in half the time as paper filers, even faster when deposited directly into a bank account.

"This year for the first time, individuals who owe money and use IRS e-file can choose to pay electronically by authorizing a withdrawal from their bank account to make the payment to the U.S. Treasury. This feature will let people file early, have the peace of mind of knowing their returns have been accepted by the IRS, and manage their finances and time without waiting until the last minute to file and pay," Barr explained. Any amount due must be paid to the U.S. Treasury by April 15.

The IRS hopes to make this filing option totally paperless for many people. "This year we are offering people who filed last year using their PCs the option of using an e-file Customer Number similar to a PIN," said Barr. "This will eliminate the need to send us a paper signature document."

To take advantage of IRS e-file, people can complete their returns using tax preparation software and send the information electronically via modem to a transmitter, who will forward it directly to the IRS. The IRS sends an acknowledgment that the return was accepted.

File Taxes from Home

More people are taking advantage of the IRS electronic filing options that make filing their tax returns easier, faster and more accurate. This year, those who owe money will have the option of paying electronically also.

"We’re adding more features to our IRS e-file program for people who owe money with their return," explained Bob Barr, IRS e-file executive. "Although they could have filed early and written a check later, we found most people preferred to wait until April 15 to file and pay together. Waiting until the last minute often led to careless errors and long lines at the post office. Now, individuals can file electronically as soon as they’re ready, get confirmation that the IRS has received their return, and pay when they choose. This option is similar to that used by many people to pay their mortgages or to pay other expenses," said Barr.

The new electronic payment option is available only to people who file their returns electronically either through a tax professional or from their personal computer using tax preparation software, according to Barr. By providing bank account information when they file electronically, people can designate when they want their tax payment made. Payments can be made anytime after the tax return is filed until April 15.

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