by Leigh Goessl

Created on: April 26, 2010

E-filing taxes has become a popular method of doing taxes. It is no wonder so many taxpayers are turning to e-file methods of filing the annual required paperwork as there are many benefits to this process.

Anyone who's ever done their taxes before by hand probably easily recalls how painstakingly tedious tax season was prior to the availability of e-filing.  Electronically filing taxes has incredibly simplified the tax return process and makes the process far less cumbersome than it used to be.

The benefits of e-filing are vast. Here are a few of the top advantages of filing taxes electronically:

*Convenience

Filing taxes over the computer is very convenient. No more sorting through packets of paperwork, making copies, or filling out schedules. The software program conveniently walks taxpayers through the filing process one step at a time. Taxpayers can simply point and click and fill in information when prompted. How easy is that?

The ability to follow the prompts also eliminates the  need to intensely study tax laws and learn all the updates; the software program takes care of this part of tax filing.

Yet there are choices. For those who still are inclined to do the computations and configure taxes on their own can still use e-filing. The IRS has approved electronic forms to be filled out online with Free File Fillable Forms and then e-filed.

*Fast Filing

With the ability to file taxes over a computer network, the paperwork is sent immediately. Filing through the now old-fashioned method of using paper entailed making copies, filling out envelopes, getting the return stamped (and often weighed at the post office), and then waiting. Now filers can simply finish their taxes and click send and the return is immediately sent to the appropriate tax agency.

*Faster Refunds

It goes without saying that if a tax return is received quickly, it will be processed sooner. Filing taxes electronically enables those entitled to a tax refund to receive their money much more quickly.

On average with e-filing, tax return refunds come within a week or two, even if the tax return was filed closely to Tax Day, April 15. In years past with paper returns, returns could take until June or July when done by paper.

*Computations/Accuracy

Software has the ability to quickly point out errors or that something filled in may not be correct. In essence when e-filing, software can help be a 'second set of eyes' when filing. The applications often pick up inaccuracies or mistakes that might be missed by the naked eye and lead to an audit.

*No Paper

Today's trends are going green and e-filing helps support this cause. No longer do taxpayers have to store packets full of paper (with sensitive information contained within) for years, they can simply store the files in digital format and secure it.

*Quick Confirmation

With e-filing quick confirmation is received when the IRS or state tax agency receives a return. No more worries about wondering if a tax return was lost in the mail or received on time. E-mails verifying receipt of tax returns are typically sent in 1-2 days.

E-filing has offered a tremendous convenience for tax time. There are many benefits associated with e-filing and with each tax year more and more people are turning to this option of tax preparation.

Reference:

http://www.irs.gov/efile/article/0,id=118508,00.html

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