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IR-2010-4, Jan. 15, 2010
WASHINGTON -- IRS e-file, the popular electronic tax return delivery service
used by two-thirds of the nation’s taxpayers, opens for business January 15 and
marks 20 years of safely and securely transmitting nearly 800 million individual
federal tax returns.
The Internal Revenue Service debuted e-file nationally in 1990, delivering
4.2 million tax returns. Last year, IRS e-file delivered 95 million tax returns,
66 percent of all returns filed.
“Electronic filing is more and more popular every year, and most taxpayers
now e-file. IRS e-file means faster refunds. It means the option to file now and
pay later if you owe additional tax. It means peace of mind knowing the IRS
received the return because we send an acknowledgement. Those are the reasons
this has been a popular service,” said Doug Shulman, IRS Commissioner. “IRS
e-file is safe, it’s easy and everyone should try it.”
Last year, more than 49 million taxpayers missed out on the e-file benefits.
The IRS urges taxpayers, especially those people already using tax software, to
take the next step and e-file their return or ask their preparer to e-file their
return. The IRS urges tax preparers who electronically file some of their
clients’ tax returns to consider filing all tax returns through e-file.
The IRS is working on faster acknowledgements of accepted or rejected
returns. Last year, taxpayers received an acknowledgement within 48 hours that
the IRS had accepted or rejected their return. Paper filers do not receive any
acknowledgement. Also, if the IRS rejects an e-filed return, it will provide
more specific explanations of the errors that caused the rejection. This will
enable taxpayers to make corrections and quickly resubmit their returns.
IRS e-file offers the fastest, safest way for people to receive their tax
refunds. By using e-file and direct deposit, taxpayers can get their refunds in
as few as 10 days. Taxpayers even can opt to have their refund deposited into
two or three financial accounts or purchase a U.S. Savings Bond.
For those who owe additional tax, e-file is still the best option. People can
file now and pay later, as long as the payment is received by April 15.
Taxpayers can set the date for an automatic withdrawal from their financial
accounts or they can pay by credit card. People also can e-file and pay by check
by simply attaching the payment to a voucher that is mailed to the IRS.
Other e-file benefits include a reduced error rate (1 percent compared to
nearly 20 percent on a paper return), which means a decreased likelihood of
hearing from the IRS. Also, federal tax returns are delivered to the IRS through
a highly secure, encrypted transmission system. Just like paper returns, e-filed
returns remain confidential.
There are three ways to use e-file: through tax preparers, through most tax
preparation software or through IRS Free File. The IRS does not charge for
e-file. Many tax preparers and software products also offer free e-filing with
their services.
As people become more comfortable using computers and the Internet for
financial transactions, the IRS has seen a huge growth in the number of people
who are preparing their own tax returns with the help of software. For people
seeking free electronic options, IRS Free File offers something for almost
everyone through two formats.
Traditional Free File provides free tax preparation software and free
electronic filing to individuals or families who earn less than $57,000.
Traditional Free File is a public-private partnership in which approximately 20
tax software manufacturers make their tax preparation software and e-filing
available for free.
Everyone can use Free File Fillable Forms. This service, now in its second
year, provides free online tax forms that can be completed and filed
electronically. These are electronic versions of IRS paper forms. This program
is ideal for people who are comfortable preparing their own returns with little
assistance.
People must access Free File through the IRS Web site at www.IRS.gov and click on Free File or www.IRS.gov/freefile. People can read
more about Free File at www.freefile.IRS.gov.
People looking for a tax preparer who files electronically and for more
information on e-file can review IRS e-file for Individuals. Taxpayers also can
locate an e-file authorized tax professional nearest to them by doing a zip code
search.
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