Efile( also called e-file) is an electronic alternative to filing paper returns.
Efile( also called e-file) is an electronic alternative to filing paper returns. You can file by efile on the IRS site-IRS.gov. In 2009, IRS efile delivered 66 percent of all tax returns filed. That equaled 95 million tax returns.
Returns for a tax period other than January 1, 2009 through to December 31, 2009, amended returns and prior –year returns cannot be submitted by efile. You can register on sites such as efile.com for all the benefits of the site, such as a tax return calculator, year end tax planning and income tax rates.
Filing via efile is advantageous in many ways.
1. IRS.gov allows free filing via efile for persons whose adjusted gross income is $57,000 or less in 2009.
2. Efile allows you to submit your state and federal tax returns faster-since it is done online.
3. Efile allows you to submit more accurate returns. The error rate with efile is 1 percent, compared with 20 percent on paper returns.
4. IRS.gov is a secure site, so efile is a secure method of filing.
5. When you submit via efile, the IRS sends an acknowledgement to confirm that they have received your tax return. People who file by paper do not receive any such acknowledgement.
6. Efile cuts the tax return processing time and allows you to get fast refunds with direct deposit. With efile, taxpayers can get refunds ten days later.
7. You can efile at your convenience, 7 days a week and 24 hours a day.
8. You can efile from anywhere, as long as you have internet access.
9. With efile, you can file now and then pay later if you owe additional tax.
10. The IRS offers more specific reasons for the rejection, if they have cause to reject a return which was filed via efile. This means that the taxpayer can make corrections more speedily.
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