E-Filing Taxes - Every Indidivual Tax Payer Needs to Know the Facts - http://www.tax-definition.org

New York City, April 2, 2005 -– Tax-Definition.org (http://www.tax-definition.org) is releasing its second report on E-filing / Tax Tips

E-file Tax Tips for Individual Filers:
http://www.tax-definition.org/e-filing/

For tax payers who dreads the long lines at the Post Office where people spend hours and hours to file their taxes, then e-filing taxes is the best way out. Different websites and special tax software have made the job of filing taxes much easier. E-filing saves time due to faster processing and refunding.

Electronic filing is one of the two ways in which a tax payer can file their returns; the other one is through the snail mail. There are many advantages of e-filing taxes: the chances of errors are minimal; refunds are quicker, more convenient, and faster than the usual mail or paper filing.

Filing taxes can be very laborious and boring; it’s like an unwelcome annual ritual that tax filers have to perform. Processing taxes can become simple with the help of “Free File” web software programs and other tax software. The tax software can be helpful in case a tax payer decides to file their own return, but if they hire a tax professional for this work, then they need to make sure that the software he/she uses is compatible.

A tax payer will receive a confirmation from the IRS, about receiving their tax return, within 24 hours. In case a tax return application is rejected, they are intimated about that as well. Once a tax payer gets that rejection notice, one can re-work on the discrepancies that were found in a tax application and can file a return again.

In e-filing, the IRS does not need to re-type a tax return at their service center. This means that there’s a little chance of error from the IRS’s end at the time of processing a tax return.

The tax software guides a tax filer through the tax forms line by line. They are given appropriate directions to fill up the form with the requisite information. Entering the data in an e-file is better as the chances of errors are very less. On the other hand, paper filing can be difficult where the chances of errors increase and can also forget to attach many important documents with the return.

It is a known fact that the people, who file their taxes through e-filing, receive their refunds in half the time than it takes for the ones who go in for paper filing. There are chances of a tax payer receiving the refund within 10 days of e-filing taxes. The refund gets deposited in their bank account directly. More than 37 states in the United States give the benefit of e-filing a federal as well as state tax returns together.

While e-filing a tax return, the tax software guides tax payers through the process of creating a PIN with the help of adjusted gross income from their last tax return and date of birth. They have the option of choosing any five numbers (other than 5 zeroes) as their electronic signature.

The IRS has developed a program called the Volunteer Income Tax Assistance, or VITA, that offers help to the people with low or moderate income, elderly, disabled, and non-English speaking. So, there is assistance available for everyone. And e-filing is gaining more popularity over paper filing.

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