| It's no surprise that as the convenience factor is | | | | Less paper, printing & mailing expenses to the |
| playing a larger role among taxpayers, the number of | | | | taxpayer & the IRS. |
| taxpayers filing taxes online (i.e. E-Filing) has increased | | | | Risks For E-Filing |
| significantly in the past couple of years. In fact, | | | | 1) Taxpayers Become Too Reliant on the Tax |
| according to the IRS, 150M taxpayers are expected | | | | Software |
| to E-File their 2009 tax returns. If you are considering | | | | Many taxpayers & preparers may become too |
| joining the crowd, below are some factors to help | | | | reliant on the tax software by allowing the programs |
| you decide whether or not to file your taxes online. | | | | to do the work and not double checking the numbers |
| The Benefits of E-Filing | | | | themselves. Programs can make mistakes as well and |
| 1) Tax Refunds Come Faster! | | | | it is possible there could be a mistake in the data you |
| That's right; you will receive your tax refund in about | | | | entered online. E-Filing was designed so that |
| half the time or as fast as 3 weeks by filing online. | | | | processing a tax return would be faster, more |
| This is because the tax returns are processed faster | | | | convenient and cheaper. It wasn't designed to |
| since no mailing is involved & all of your tax | | | | replace the amount of thought & care put into |
| information is sent electronically. | | | | filing a tax return especially for complicated issues like |
| 2) Receive Proof Of Receipt Immediately | | | | transferring stock investments in IRAs. Make sure |
| You will receive a receipt for filing your taxes online | | | | you double check your tax return. |
| immediately and a confirmation number should your | | | | 2) Failure to Maintain a Hard Copy or Software |
| tax information inadvertently get misplaced. | | | | Backup |
| 3) Less IRS Mistakes | | | | Many taxpayers may also forget to print hard copies |
| Since the IRS doesn't have to re-enter data into the | | | | of their tax returns & also save a soft copy on |
| system, the IRS is less likely to make errors. | | | | a flash drive or other computer storage device |
| 4) Less Taxpayer Errors | | | | should the tax return become misplaced. Please |
| Generally speaking, taxpayers are less likely to | | | | maintain backup copies of your returns in multiple |
| commit errors as many of the most widely used | | | | secure locations as the law doesn't really protect you |
| e-file programs (i.e. IRS E-File Program, TurboTax, | | | | if your files are misplaced. |
| TaxAct, TaxComplete) highlight errors before the | | | | 3) Taxpayers May Use Community Computers |
| tax return is filed. But keep in mind that they are | | | | There is a risk that many taxpayers without access |
| NOT full proof so also check the tax information | | | | to a personal computer may use community |
| yourself. Please also note that some of the software | | | | computers at libraries and other public places. There is |
| programs are free to file a federal tax return but | | | | a risk that your identification can be compromised on |
| most require you to at least pay to file a state | | | | one of these networks, so try to use a more secure |
| return. | | | | resource or file your tax return via mail. |
| 5) Eco-Friendly & Cheaper | | | | |