Frequently Asked Questions about eFile
Here are the answers to the most common questions asked about IRS eFile (E-Filing). This is one of the best systems for filing taxes and reduces many of the errors that are associated with filing taxes with paper forms. Most taxpayers should file heir taxes uses common e-file systems that are available online for free or at cost.
Online tax preparation and online payment of taxes are getting more popular every year. If you’ve wondered about efiling, here are the answers to frequently asked questions, including why efiling is a good idea, which states let you efile, how much efiling costs, and how soon you’ll receive your refund.
eFile FAQS for Accurate Tax Filing Online
Question: What is IRS efile?
Answer: IRS e-file is an electronic tax-filing service available to individuals. It is the fastest way to file taxes – and get your refund in half the usual time.
Question: What do I gain by using IRS efile?
Answer: Fast electronic filing. Fast proof of acceptance. Fast refunds. Peace of mind. Security. Your tax preparer transmits your tax return from their computers to the IRS. Click. Zip. Your return is in. Within 48 hours the IRS sends them proof that it has been accepted. Only IRS e-file offers this advantage. You can get the job done a lot faster if you tackle it with your computer. Filing from your computer saves you the trip to the post office, too.
Question: How accurate is IRS efile?
Answer: It is virtually error-proof. IRS e-file is so accurate it greatly reduces the chance that you’ll get “one of those letters” from the IRS. Using tax software such as TurboTax substantially reduces errors. According to the IRS, 20 percent of income tax returns prepared on paper have mistakes, such as missing information or taxes calculated using the wrong tax tables; half of those errors cause folks to overpay their taxes
Question: What about my signature?
Answer: You simply sign the signature document, form 8453, and we take care of the rest.
Question: Do I really get my refund faster if I efile my tax return?
Answer: With IRS e-file, you’ll get it back in half the usual time. It’s even faster if you have your refund directly deposited to your bank account. If you send in your return by mail, you can expect to wait up to six weeks for your refund. Efiling your return and electing to have your refund deposited directly into your bank account is the fastest way to get your tax refund.
Question: What If I owe a balance due? Why should I want the speed of efile?
Answer: You can file now, pay later, and beat the last-minute rush. No matter when we e-file your tax return, you don’t have to pay what you owe until later as late as April 15. In the meantime, you have a fast, electronic proof of acceptance from the IRS. You can still pay with a check sent via snail mail if you prefer. As long as the check is in the mail by the due date of your return the payment is considered to be on time. Or you can advise the IRS to debit your checking or savings account for the amount due
Question: Where else can I get additional information about IRS efile?
Answer: Visit the IRS website at www.irs.ustreas.gov or in you tax booklet.
Question: Is there a fee for IRS efile?
Answer: Your tax preparer will be glad to explain the fees for tax preparation and efiling. These fees are not based on any figures from your tax return. The IRS does not charge a fee for e-filing.
Question: Can I efile my state tax return with a Federal return?
Answer: In most cases, yes. Ask your tax preparer about this service.
Question: How do I pay when I choose IRS efile?
Answer: You have new choices this year. You can authorize a direct transfer from your checking or savings account as part of your return. With this option you can delay when the money comes out of your account until later-as late as April 15. You can also pay by phone using a credit card by dialing 1-888-2-PAY-TAX and entering a jurisdiction code of 1040. You can still pay by check or money order.
Question: If I choose the direct transfer option and delay payment, can I be sure the money won’t be withdrawn sooner?
Answer: Money will not be withdrawn from your account before the date you specify. However, if you designate a weekend or bank holiday, the payment will not be withdrawn until the next business day because the U.S. Treasury can settle payments only on business days
Question: What confirmation of payment will I receive?
Answer: Your confirmation will be your bank statement and your copy of your electronically filed tax return which includes your direct transfer authorization.
Question: Can I make my payment on or after April 15?
Answer: You can designate the payment to be made up to and including April 15, but not after that date. Your payment will be considered timely if your electronic tax return is transmitted and accepted on or before April 15. Note: some transactions may take a day or two longer, due to circumstances beyond the control of the IRS. Therefore, we suggest that all payments be scheduled for transaction at least two business days before April 15.
Question: What if later I want to cancel or change my designated payment date?
Answer: Once you efile your tax return and it is accepted by the IRS, you cannot change your designated payment date. If you need to change the date, your only option is to cancel the transaction and send a check for the correct amount. You may cancel a payment ONLY if Treasury receives cancellation instructions by the morning of the business day prior to the day that you designated as your payment date. The cancellation must be authorized by you or by a person with access to your Taxpayer identification Number (TIN), payment amount, and bank account number. Please call 1-888353-4537 toll-free if you need to cancel a payment.
Question: Can I make partial payments?
Answer: You can make a payment for less than the balance due amount on your tax return. However, you are responsible for paying the remaining balance due by April 15 or you will be subject to late payment penalties and interest. If you cannot pay in full by April 15, you should file form 9465, Installment Agreement Request. An approved Installment Agreement allows you to make a predetermined series of partial payments after April 15 and includes interest charges since these payments are considered late.
Question: If I do not choose to pay electronically when I file my electronic tax return, can my tax preparer initiate an electronic payment for me at a later date?
Answer: No. An electronic payment is initiated only at the time an electronic tax return is filed.
Question: If I give the IRS access to my bank account number, what else can they do?
Answer: Nothing. The IRS will use your direct transfer authorization ONLY for this one payment – to deduct the amount you designated at the time that you filed your electronic tax return.