In 2007, more than 80 million taxpayers filed their returns electronically, according to the IRS. The IRS received approximately 136 million tax returns, and of that, almost 60 percent were filed electronically, making e-filing the most popular method of filing a federal tax return.
Taxpayers can e-file through a tax professional or by using a program like TaxACT on their personal computer.
There are many advantages to e-filing. First, because the return is transmitted electronically, it is the fastest way to get a return to the IRS for processing. If taxpayers are eligible for a refund, they can receive it in half the time compared to submitting a paper return. Using Direct Deposit, a refund can be deposited directly into a taxpayer’s bank account in as little as 10 days.
In addition, e-filing gives taxpayers fast reassurance that their information was safely received by the IRS. When taxpayers use e-filing, they will receive an email acknowledging the receipt of the tax return within 48 hours of its submission. Furthermore, e-filing is a sensible way to reduce paper consumption nationwide. With millions of taxpayers forgoing the regular paperwork and mailing materials, countless trees will be saved with e-filing.
For tax payers who may owe money, they can e-file their taxes at any time and delay payment up to April 15th.
TaxACT offers an easy way to e-file your taxes for free. Learn more at their website. With the end of the calendar year approaching, now is the time to start thinking about your taxes and getting your receipts in order so you can file an accurate return. Using Shoeboxed and TaxACT can help make your tax preparation and filing easy this year.