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IRS Patrol:IRS e-file: It’s Safe; It’s Easy; It’s Time
Videos:
E-File Director’s Message: English | Spanish
Free File and Fillable Forms: English | Spanish |ASL
Ask Your Tax Preparer to e-File: English
First Time Filing a Tax Return?: English
E-File and Direct Deposit: English | Spanish |ASL
For these and other videos: YouTube/IRSVideos
Audio:
Audio File for Podcast:English |Spanish
WASHINGTON — IRS e-file, the popular electronic tax return delivery service used by two-thirds of the nation’s taxpayers, opens for business January 15 and marks 20 years of safely and securely transmitting nearly 800 million individual federal tax returns.
The Internal Revenue Service debuted e-file nationally in 1990, delivering 4.2 million tax returns. Last year, IRS e-file delivered 95 million tax returns, 66 percent of all returns filed.
“Electronic filing is more and more popular every year, and most taxpayers now e-file. IRS e-file means faster refunds. It means the option to file now and pay later if you owe additional tax. It means peace of mind knowing the IRS received the return because we send an acknowledgement. Those are the reasons this has been a popular service,” said Doug Shulman, IRS Commissioner. “IRS e-file is safe, it’s easy and everyone should try it.”
Last year, more than 49 million taxpayers missed out on the e-file benefits. The IRS urges taxpayers, especially those people already using tax software, to take the next step and e-file their return or ask their preparer to e-file their return. The IRS urges tax preparers who electronically file some of their clients’ tax returns to consider filing all tax returns through e-file.
The IRS is working on faster acknowledgements of accepted or rejected returns. Last year, taxpayers received an acknowledgement within 48 hours that the IRS had accepted or rejected their return. Paper filers do not receive any acknowledgement. Also, if the IRS rejects an e-filed return, it will provide more specific explanations of the errors that caused the rejection. This will enable taxpayers to make corrections and quickly resubmit their returns.
IRS e-file offers the fastest, safest way for people to receive their tax refunds. By using e-file and direct deposit, taxpayers can get their refunds in as few as 10 days. Taxpayers even can opt to have their refund deposited into two or three financial accounts or purchase a U.S. Savings Bond.
For those who owe additional tax, e-file is still the best option. People can file now and pay later, as long as the payment is received by April 15. Taxpayers can set the date for an automatic withdrawal from their financial accounts or they can pay by credit card. People also can e-file and pay by check by simply attaching the payment to a voucher that is mailed to the IRS.
Other e-file benefits include a reduced error rate (1 percent compared to nearly 20 percent on a paper return), which means a decreased likelihood of hearing from the IRS. Also, federal tax returns are delivered to the IRS through a highly secure, encrypted transmission system. Just like paper returns, e-filed returns remain confidential.
There are three ways to use e-file: through tax preparers, through most tax preparation software or through IRS Free File. The IRS does not charge for e-file. Many tax preparers and software products also offer free e-filing with their services.
As people become more comfortable using computers and the Internet for financial transactions, the IRS has seen a huge growth in the number of people who are preparing their own tax returns with the help of software. For people seeking free electronic options, IRS Free File offers something for almost everyone through two formats.
Traditional Free File provides free tax preparation software and free electronic filing to individuals or families who earn less than $57,000. Traditional Free File is a public-private partnership in which approximately 20 tax software manufacturers make their tax preparation software and e-filing available for free.
Everyone can use Free File Fillable Forms. This service, now in its second year, provides free online tax forms that can be completed and filed electronically. These are electronic versions of IRS paper forms. This program is ideal for people who are comfortable preparing their own returns with little assistance.
People must access Free File through the IRS Web site at www.IRS.gov and click on Free File or www.IRS.gov/freefile. People can read more about Free File at www.freefile.IRS.gov.
People looking for a tax preparer who files electronically and for more information on e-file can review IRS e-file for Individuals. Taxpayers also can locate an e-file authorized tax professional nearest to them by doing a zip code search.
You Might Want to Contact A Professional When – And Some IRS Free File Tips
By Stacie Clifford Kitts, CPA
Knowing when to prepare your own return and when to hire a professional can be confusing. I suppose if you have some training in the world of tax preparation that preparing your own return is a fine idea. However, the IRS’s release of the “Free File” tax tips listed below made me think that it might be a good idea to talk about when you should contact a professional.
Now, if your only source of income is a W2 from a single employer, you have not changed jobs during the year, you don’t own your home, you don’t have any questions about dependents, and your income is relatively low, then I think you are pretty safe preparing your own tax return. Although I suggest that you buy some tax software to walk you through the process or check out the IRS’s Free File Program.
Okay, sooo if you are unsure of how to treat a certain situation or your return is more complicated than the example above, you might want to consider contacting a professional when:
- You are itemizing deductions – unless you have a good grip on alternative minimum taxes, you could cause yourself some additional tax by improperly prepaying property taxes or state income tax. There is also the possibility that you could miss out on some current year deductions by not prepaying some property or state income taxes…confused? Well now is the time to call the professional.
- You have a rental property – do you know the rules about passive activities, participation rules, grouping activities?…NO.. Then it’s time to call the professional.
- You are self-employed – do you know what constitutes space for a home office? How about when meals are limited and when they are not? How about gifts or vehicle expenses – actual vs mileage…Ya know, if you are self-employed you should just call a professional.
- You sold assets or have investment income – Do you know the difference between outside and inside basis? For that matter, do you know what basis means? Do you know what the following tax forms are for, 1099-S, 1099B, 1099INT, 1099Div, 1099G,Schedule K-1…NO…It’s time to call the professional.
- You supported someone who is not your child – do you know the dependant rules? Honesty, you might think that you do, but these rules can be complicated – if you supported someone who is not your child, you should contact a professional.
Well, I think that’s enough for now. If you are still interested in preparing your own return, here are some IRS free file tips:
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The IRS Presents:
The IRS Free File service provides free federal income tax return preparation and electronic filing for all taxpayers. All you need is access to a computer and the Internet and you can prepare and e-file your federal tax return for free.
Free File is offered through a partnership between the IRS and the Free File Alliance, a group of private-sector tax software companies. Since Free File’s debut in 2003, more than 27 million returns have been prepared and e-filed through this program.
Free File offers two options. The first is Traditional Free File, which includes approximately 20 tax preparation software products from which to choose. Taxpayers with 2009 incomes of $57,000 or less are eligible for this service. The second option is Free File Fillable Forms, which is an electronic version of IRS paper forms. All taxpayers can use Free File Fillable Forms to prepare and file tax forms electronically.
Use the following steps to file your return through IRS Free File:
Step 1. Get Started Access IRS.gov and click the Free File logo or go to www.irs.gov/freefile. You must access Free File companies through the official IRS Web site to qualify for the free service.
Step 2. Determine Your Eligibility If your 2009 income was $57,000 or less, you’re eligible for Traditional Free File’s easy-to-use, step-by-step software. If your income was higher, you are eligible for Free File Fillable Forms.
Step 3. Link to Free File Company Service If you opt for Traditional Free File, you can choose one of the approximate 20 offerings by reviewing which one fits your situation. You can click “I Will Choose A Free File Company” or “Help Me Find A Free File Company.” To get started with Free File Fillable Forms, just click the “Choose Free File Fillable Forms” button.
Step 4. Prepare and e-file your Federal Income Tax Return Either Traditional Free File or Free File Fillable Forms will allow you to file your return electronically, for free.
Both the fillable-forms option and the “full service” Free File offerings are only available through IRS.gov. Whether you are new to Free File or a returning taxpayer, you must access Free File through IRS.gov; otherwise, the provider may charge a fee.
Link:
Stacie's Tax Stuff 