Electronically filing tax returns in the United States is common practice for many filers. The ease of use, increased speed of refunds and preference by tax preparation professionals has led to wide adoption of e-filing as opposed to the older practice of mailing printed tax forms to regional Internal Revenue Service offices. Filing dates and form requirements when you e-file your tax return are equivalent to physically prepared tax documents.
Function
E-filing tax returns allows you to submit your annual tax return through an authorized Electronic Return Originator who sends your filing information securely to the IRS for processing. Electronic filing replaces mailing physical tax forms to IRS offices. The most common types of personal tax return situations allow for e-filing options. If you are self-employed or own a business, many business tax forms can also be submitted through e-filing processes.
Time Frame
The actual transmission of your tax returns electronically typically takes a few minutes. Upon receipt, the Internal Revenue Service automatically checks your return for errors such as an incorrect Social Security number or for information that does not match your file at the IRS. Within 48 hours of transmitting your tax return, you or your authorized tax submission professional will receive an acceptance or rejection of your tax return. This acceptance serves as your proof of filing. Receipt of any refunds usually occurs around three weeks from your tax acceptance acknowledgment date. If you opted for a direct deposit of your refund, you may receive your refund faster.
Methods
E-filing your tax returns can be processed through tax preparation software, through an authorized tax preparer or through a third-party authorized e-file participant. You can often submit your federal and state returns at the same time. In lieu of your written signature, the IRS uses an individual four-digit PIN number for identification purposes. You should keep your PIN number secure as the same number will be used for all your yearly e-filed tax returns.
Cost
The Internal Revenue Service does not impose any fees for submitting your tax return electronically. You may have fees associated with submitting your tax return through tax preparation software, through a tax preparation company or for a simple submission service. If you make less than $57,000 a year, you may qualify for the Free File program that transmits your return without any fees.
Effects
E-filing your tax returns results in greater accuracy and faster refunds, according to the IRS. You are able to reduce paper consumption, receive rapid confirmation that your return was accepted and establish a payment plan if necessary. E-filing may reduce the time it takes to complete your tax return and eliminates the need to visit a post office to mail your taxes with a return receipt confirmation.
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