E-filing tips

January 25, 2009 7:26:13 AM PST
More and more Americans are choosing e-file which lets them easily file an accurate tax return or get an extension of time to file without sending any papers to the Internal Revenue Service. E-Filing is growing approximately 15% each year with Americans. Last year, more than 65-million people filed electronic tax returns.

Why should I consider E-Filing?
The biggest benefit for electronic filing is you will receive a confirmation that the IRS has received your tax return. Usually a taxpayer is not notified of a missing return until months or even years later.

Also, your refund is likely to be processed faster. E-Filing means the IRS does not have to re-type your tax return into their service center, which means less chance the IRS will make a mistake when processing your return.

What Software is Best to Use for E-Filing?
I like the Intuit family of products and they developed Turbo Tax. Prices range depending on the complexity of the tax return.

What Happens If I Make a Mistake?
Computers quickly and automatically check for errors and other missing information, making e-filed returns more accurate and reducing the chance of getting an error letter from the IRS.

What Do Error Letters from the IRS Include?
a The IRS may claim an additional standard deduction if you are are blind or over the age of 65 years of age.
b You forgot to sign and date your return
c You forgot to include your occupation description.
d You included too much social security benefits as taxable income.
e You forgot to include a credit for any overpaid social security taxes.
withheld from your wages when working for more than one employer.
f Your name and social security number doesn't match with IRS records.
Any of these errors could cause an audit for you! Be careful.

How Do I Pay My Taxes?
Electronic Payment Options!
Convenient, safe and secure electronic payments options are available. If you owe taxes, you can e-file and schedule an electronic funds withdrawl from your checking or savings account, or pay by credit card.

But I Don't Want the Government to Have Knowledge or Access to My Banking Information!
If the IRS wants you?.It will find you! E-Filing is the way of the future. More and more individual and business forms are available to file electronically. Be the first one on your block to do the E-Filing. Learn now and you will be ahead of the game when it becomes required by the government. States are following the Federal Government requirements in e-filing procedures as well.

Any more questions regarding e-filing: Check out the IRS website: www.irs.gov or call 800-829-1040 if you have any questions.

Don't Panic!! The IRS is a friend, not a mean monster. If you are in trouble, they are there to help you. Never worry about money?things can always be negotiated on your behalf.