Benefits of Using IRS E-File for Tax Returns

By | January 26, 2014

Why is E-File the best way to file taxes?

The IRS is pushing very strongly to have all taxpayers e-file their tax returns for years 2013 and beyond. There are many advantages of using e-file software or a website to file a tax return. Some of these benefits are listed below. E-File is a method of submitting tax returns prepared by using an approved software product to the IRS and/or State Department of Revenue electronically through the internet.

Benefits of Using IRS E-File for Tax Returns

You can file your Federal and State income tax returns by personal computer using tax preparation software. Another way to file electronically is by using a tax professional to E-File your returns.


E-File Advantages for Filing Tax Return

  • Protection of your personal information. Filing electronically eliminates the possibility that personal information, such as your Social Security number, address, and name, can fall into the wrong hands while going through the mail. And electronically filed return information is protected through encryption.  This could cut down on any potential identity theft problems.
  • Software Program automate the Process. Software programs such as TurboTax and H and R Block will allow taxpayers to calculate their taxes from home and e-file.
  • Online payment. If you owe tax, you can pay online (pay taxes by credit card) and not have to wait for a paper check to clear. And under IRS’s e-file early, pay later option, you can file your return as soon as you’re ready, and schedule an electronic funds withdrawal any time through the due date of your return. You can pay later, but you will be subject to penalties are interest
  • Acknowledgment of receipt. IRS’s e-file program provides immediate acknowledgment that IRS has received the return and that they will begin reviewing the tax return. There’s no chance of your return being lost or delayed in the mail.
  • Quicker refunds. IRS claims that a taxpayer filing electronically receives a refund in half the time as a taxpayer who files a paper return-even faster with direct deposit. According to IRS, direct deposited refunds can be received in as few as ten days. This makes sense because the IRS can process the information faster when the e-file is received in electronic form.
  • Refund anticipation loan (RAL). If you have a refund coming, you can also borrow money based on an anticipated tax refund using a refund anticipation loan, which is a contract between you and a lender in which IRS is not involved. Filing electronically speeds this process as well because the lender will have a more accurate picture of your tax return.


 E-File your return using a personal computer

If you E-File your return using a personal computer and approved software, the software that you choose will explain the fees, if any. There are free and low cost filing options available for those that qualify. Select Free E-File or Low Cost E-File for more information. The IRS does not charge a fee to E-file.