Save Time and Money with E-File
Texas CPAs Explain the Advantages of E-filing Your Return This Year

DALLAS — Are you thinking about filing your tax return electronically? You won’t be alone. More than 60 million taxpayers chose to e-file last year. E-filing offers taxpayers several advantages and a number of different filing options, according to the Texas Society of Certified Public Accountants.

Key Benefits of E-Filing

When you e-file, the IRS computers automatically check your return for errors and missing information, which leads to more accurate returns. The IRS sends an acknowledgement confirming the receipt of your return within two days. In addition, refund checks are received in half the time with e-filing, even sooner if direct deposit to a bank account is chosen. Owe money? There’s an additional benefit. Taxpayers who owe the IRS can file their returns early and delay payment until the due date.

E-Filing Using An Authorized Provider

One way to file your return electronically is by using an authorized provider. An authorized provider can complete your return, filling in the electronic forms and e-filing them with the IRS. Or, you can complete your return on your own – either on paper or using tax software – and simply bring it to an authorized provider who enters the data and transfers your information to the electronic filing format. A list of authorized providers is available on the IRS Web site, www.irs.gov.

E-Filing Using Tax Software

Taxpayers with a computer, modem or Internet access can e-file their returns from home using tax software purchased at a retail store or downloaded from the Internet. When you choose this method, you send a completed electronic tax return to the software provider, which as an authorized provider, converts the file to a format that meets IRS specifications and e-files your return.

E-Filing Using Free File

Filing through a provider or transmitter typically involves a fee. You may be able to file for free if you meet the criteria established for Free File, a government/software industry effort initiated to increase the number of e-filers. To learn more about these free services, visit the Free File page on the IRS Web site.

Filing By Telephone

Some taxpayers receive a TeleFile booklet from the IRS. If you get a TeleFile booklet in your name and you have access to a touch–tone telephone, you can use TeleFile. TeleFilers complete a worksheet, call a toll-free number, and follow the step-by-step instructions. An interactive computer program automatically calculates your tax and begins the electronic filing process over the telephone. TeleFile is completely paperless with no forms to mail.

Payment Options Are Available

Electronic payments offer a safe and convenient method for paying income taxes. When e-filing, you may authorize the Treasury to electronically debit your payment from your checking or savings account on a specific date (no later than April 15). This convenience is available only to taxpayers who e-file, either by computer or by telephone.

You also can pay by credit card. Be aware that companies who are authorized by the IRS to offer this service generally charge a fee. If you prefer to send a check, be sure to include IRS payment voucher Form 1040V.

Signing Your E-Filed Return

E-filers have the option to self-select a Personal Identification Number (PIN) in place of a signature. For those who choose this option, there is nothing to sign and nothing to mail. Paperless filing is available to taxpayers who use a tax provider or file their returns online.

Consult A CPA

While e-filing makes completing your taxes easier, it’s a good idea to consult with a CPA to ensure that you are making the most of tax saving strategies. Tax tips also are available on www.valueyourmoney.org, where consumers can sign up for a free monthly e-newsletter with personal finance tips exclusively for Texans.

ABOUT TSCPA

TSCPA (http://www.tscpa.org) is a nonprofit, voluntary, professional organization representing Texas CPAs. The society has 20 local chapters statewide and has 27,000 members, one of the largest in-state memberships of any state CPA society in the United States. TSCPA is committed to serving the public interest with programs that advance the highest standards of ethics and practice within the CPA profession.