Over 46 million taxpayers filed taxes online in 2011, a net change of 2.2% from the previous year according to the IRS. More and more Americans are switching from the way they previously filed taxes to e-filing, which signals Americans trust the e-file process more than they have before. On this page we are going to discuss the benefits of e-filing your taxes compared to paper filing.
Faster Tax Filing
The online filing process is more streamlined than if you filed taxes the old-fashioned way. Depending on what website or software you use to e-file, even the more complicated tax returns are simpler when e-filed. Taxpayers with more complex taxes should always consult a tax professional before filing. However, an overwhelming amount of Americans can e-file with no complications, and take advantage of the same tax credits and tax deductions as they did when they filed taxes using a paper returns.
Thousands of taxpayers call the IRS every year asking about their refunds after they filed taxes. For those taxpayers their refund isn't expected to arrive in the mail until six weeks after they filed taxes. Many of them cannot wait that long, as more Americans are using their income tax refunds to pay necessary bills rather than buy luxury items.
The average online filer can expect to have their refund quicker than the average person who filed taxes using the standard IRS Form 1040. You can opt to have your tax refund directly deposited in to your bank account, which cuts your wait time down to 1-2 weeks, or have your refund mailed, which takes up to 4 weeks. Both time frames are substantially less than if you traditionally filed taxes because the IRS receives and examines e-filed tax returns quicker than paper forms.
The IRS and many tax filing websites offer free filing for taxpayers who fall within certain income brackets. Many who filed taxes using an IRS paper booklet this year paid a tax professional to help prepare their taxes. While there are instances where you will want a tax professional to assist in filing your taxes, for those who are filing a simple individual return, the online assistance is sufficient.
If you receive a tax debt, or are audited by the IRS after you filed taxes online, you should find a tax professional to discuss the possible reasons why. Also, if you are not confident about filing taxes yourself, you can always use the resource tools from the website you choose. There will always be taxpayers who are still skeptical of the online tax filing movement, but understanding the benefits of e-filing may persuade some to use online resources to file taxes in 2012.
Call now or fill out the form below for a free consultation about a tax debt you acquired after you filed taxes online. We'll only connect you with a tax debt relief company holding at least a B rating with the Better Business Bureau.