Last year over 90% of tax returns were filed electronically, or efiled. That number continues to climb each year, but it’s inching forward very slowly, which indicates that we may not achieve 100% of electronic filings for decades.
The IRS continues to persuade taxpayers to submit the returns electronically as it helps speed the process. In fact efiling is a win-win situation for both the IRS and taxpayers.
First of all, it benefits the agency from increased productivity. Automation in processing tax returns is crucial in times on reduced federal employment. The agency can also evaluate all sorts of statistical data quicker and learn about the American households in a timely manner. Electronic filings help taxpayers keep track of the returns and the refund status. When filing electronically, you get an email confirmation that the IRS has received and accepted your return. That usually happens within the 48 hrs of filing. You can also track the status of your refund by providing a few details about your tax situation and get a better estimate on when the money will be deposited in your bank account.
Although the main draw to efile is the speed of submitting the returns and getting the refund, we shouldn’t forget about the culture of getting things accomplished electronically. Each day more and more tasks can be done with the use of a smartphone and taxes aren’t any different.
The security of electronic submittal of sensitive personal information has been very strong. Efiling encrypts the data and follows very strict security standards that additionally prevent identity theft.
Finally, when filing electronically, all software makers present taxpayers with multiple options of making a payment or receiving a refund. When it comes to making a payment, options include setting up automatic payment either linked to a debit or credit card. If you are unable to make payments at the moment, there is an easy access to request a delay in collections until your financial conditions improve.