| It has been no surprise that the number of people | | | | 5) Eco-Friendly & Cheaper |
| embracing the convenience of filing taxes online (i.e. | | | | Less paper, printing & mailing expenses to the |
| E-Filing) has increased significantly in the past couple | | | | taxpayer & the IRS. |
| of years. In fact, according to the IRS, 90M people | | | | Risks For E-Filing |
| used E-File for their tax returns in 2008. If you want | | | | 1) Taxpayers Become Too Reliant on Tax Software |
| to join the crowd, below are some factors to | | | | Many taxpayers & preparers may become too reliant |
| consider in deciding on whether or not to file your | | | | on the tax software by letting the programs do the |
| taxes online. | | | | work and not double checking the numbers |
| What Are The Perks of E-Filing | | | | themselves. Programs can make mistakes as well and |
| 1) Tax Refunds Come Quicker! | | | | 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 after filing your | | | | processing a tax return would be quicker, more |
| return. Why? Because everything is 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 filing a |
| information is sent electronically. | | | | tax return especially for complicated issues like |
| 2) Immediate Proof Of Receipt | | | | transferring stock investments in IRAs. Make sure |
| You will receive a receipt for filing your taxes online | | | | you double check. |
| and a confirmation number should your tax | | | | 2) Less Hard Copy and Backups Maintained |
| information inadvertently get misplaced. | | | | Many taxpayers may also forget to print hard copies |
| 3) Less IRS Errors | | | | of their tax returns & also maintain a soft copy on a |
| Since the IRS doesn't have to re-enter data into the | | | | flash drive or other computer storage device should |
| system, there is a lower probability of the IRS | | | | the tax return become misplaced. Please maintain |
| making errors. | | | | backup copies of your returns in multiple secure |
| 4) Less Taxpayer Errors | | | | locations as the law doesn't really protect you if your |
| Generally speaking, taxpayers are less likely to | | | | files are misplaced. |
| commit errors as many of the most widely used | | | | 3) Taxpayers May Use Community Computers |
| e-file programs (i.e. IRS E-File Program, TurboTax, | | | | There is a risk that many taxpayers without access |
| TaxAct, TaxComplete) point out mistakes before | | | | to a personal computer may use community |
| the return is filed. They are NOT full proof though so | | | | computers at libraries and other public places. There is |
| also check the tax information yourself. Please also | | | | a risk that your identification can be compromised on |
| note that some of the software programs are free | | | | one of these networks, so try to use a more secure |
| to file a federal tax return but most require you to | | | | resource or file your tax return via mail. |
| at least pay to file a state return. | | | | |