Over One Billion Served: The IRS Announces a Major Milestone in Electronic Tax Filing
The IRS announced today that the organization has passed a significant benchmark. And no, we're not talking McDonald hamburgers.
Over one billion individuals have used electronic filing in order to submit their personal 1040 tax returns. That's a noteworthy milestone, especially considering the IRS only passed the one million mark in the mid-90s.
Piloted in 1986, e-filing, or the paperless submission of a tax return via electronic media, became available to the general public in 1990. Since then, the IRS has made a steady push toward electronic filing, both for its ease of use and simplified processing, as well as the additional security it lends to the filer.
In a move that has encouraged the trend toward electronic tax return filing, the IRS announced in September of last year that they would stop mailing out pre-printed tax forms and 1040 booklets to taxpayers.
As a result, close to 80 percent of all tax returns processed by the IRS were submitted electronically. So far this year, the IRS has processed over one-hundred million electronically filed 2010 tax returns.
"IRS e-file is a good deal for taxpayers," said IRS Commissioner Doug Shulman in his press release. "The one billion milestone means e-file has delivered real services to taxpayers, including faster refunds and more accurate tax returns. And because an e-file return costs us 20 times less to process than a paper return, this program means a more efficient government that has saved America's taxpayers hundreds of millions of dollars."
Anyone can electronically file a tax return, and a good portion of taxpayers found out this year that they could do so for free. If your 2010 adjusted gross income was under $58,000, the IRS will partner your tax return filing with various reputable companies for free electronic preparation and submission. This FreeFile program is available through IRS.gov.
Even if you do not qualify for free filing, you can still prepare and file your own return electronically through the IRS web site. Click on the e-File logo on the home page to get started.
As part of the delivery process, IRS computers automatically check your electronically filed return for mistakes. If the IRS identifies easy-to-fix mistakes, like a math error or a wrong social security number, they will immediately notify you at the email address you provided.
If you need to make a payment to the IRS, this can be done through the e-filing process as well. E-file and pay in a single step by authorizing an electronic funds withdrawal from a checking or savings account. An acknowledgement will be sent as soon as the IRS accepts your payment.
You can also make a payment with a debit or credit card using the Electronic Federal Tax Payment System. This system allows you to make payment on your current or past-due taxes, or send in payments for federal tax deposits and or estimated tax payments. Click on the EFTPS logo on the IRS home page to get started.
If you made a claim for a refund on an electronically filed return, the amount of time for the IRS to get that refund into your hands is appreciably shortened, compared to paper returns sent via the mail.
A refund on an e-filed return, especially one that has elected to have the refund directly deposited, will be sent out in approximately two to four weeks, and sometimes in as little as ten days. Paper returns typically take six to eight weeks to process.
More from this Contributor:
How to e-file your federal tax return for free
What I'm planning to do with my tax refund
Beware of federal tax refund scams
Over one billion individuals have used electronic filing in order to submit their personal 1040 tax returns. That's a noteworthy milestone, especially considering the IRS only passed the one million mark in the mid-90s.
Piloted in 1986, e-filing, or the paperless submission of a tax return via electronic media, became available to the general public in 1990. Since then, the IRS has made a steady push toward electronic filing, both for its ease of use and simplified processing, as well as the additional security it lends to the filer.
In a move that has encouraged the trend toward electronic tax return filing, the IRS announced in September of last year that they would stop mailing out pre-printed tax forms and 1040 booklets to taxpayers.
As a result, close to 80 percent of all tax returns processed by the IRS were submitted electronically. So far this year, the IRS has processed over one-hundred million electronically filed 2010 tax returns.
"IRS e-file is a good deal for taxpayers," said IRS Commissioner Doug Shulman in his press release. "The one billion milestone means e-file has delivered real services to taxpayers, including faster refunds and more accurate tax returns. And because an e-file return costs us 20 times less to process than a paper return, this program means a more efficient government that has saved America's taxpayers hundreds of millions of dollars."
Anyone can electronically file a tax return, and a good portion of taxpayers found out this year that they could do so for free. If your 2010 adjusted gross income was under $58,000, the IRS will partner your tax return filing with various reputable companies for free electronic preparation and submission. This FreeFile program is available through IRS.gov.
Even if you do not qualify for free filing, you can still prepare and file your own return electronically through the IRS web site. Click on the e-File logo on the home page to get started.
As part of the delivery process, IRS computers automatically check your electronically filed return for mistakes. If the IRS identifies easy-to-fix mistakes, like a math error or a wrong social security number, they will immediately notify you at the email address you provided.
If you need to make a payment to the IRS, this can be done through the e-filing process as well. E-file and pay in a single step by authorizing an electronic funds withdrawal from a checking or savings account. An acknowledgement will be sent as soon as the IRS accepts your payment.
You can also make a payment with a debit or credit card using the Electronic Federal Tax Payment System. This system allows you to make payment on your current or past-due taxes, or send in payments for federal tax deposits and or estimated tax payments. Click on the EFTPS logo on the IRS home page to get started.
If you made a claim for a refund on an electronically filed return, the amount of time for the IRS to get that refund into your hands is appreciably shortened, compared to paper returns sent via the mail.
A refund on an e-filed return, especially one that has elected to have the refund directly deposited, will be sent out in approximately two to four weeks, and sometimes in as little as ten days. Paper returns typically take six to eight weeks to process.
More from this Contributor:
How to e-file your federal tax return for free
What I'm planning to do with my tax refund
Beware of federal tax refund scams
Published by James Skye - Featured Contributor in Business & Finance
As a 15-year IRS employee with a strong freelance background, my education and experience affords me the opportunity to contribute articles relating to personal finances and taxes. I also enjoy writing relig... View profile
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