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Services - Tax Preparation The
Benefits of Electronically Filing a Tax Return
Tonight we are going to discuss the benefits of electronically filing
tax returns.
Any suggestions on what these reasons might be?
- Faster Refund Half the time (6-8 weeks is
usual) as Snail Mail; Within as little as 10 days if you also
opt for direct deposit (go electronic both ways!)
- Greater Accuracy What happens when you snail
mail your return? Well, between re-keying errors and initial reporting
errors (ssn, name etc.) the initial error rate for paper returns
has remained steady at 20-21%, while the e-file error rate is
less than 1%. This will decrease the receipt of letters from the
IRS.
- Receipt of Filing within 48 hours, the IRS
sends, via the ERO, a receipt that says they have your return.that
way you don't have to worry if that other national agency managed
to get your return to the IRS in time!
- Cheaper for the Government . I am sure this
is tops on your list! But the processing cost per paper return
is $4.28, while electronic was $4.14 in 1999 with goals for $3.50
in 2003 and $2.00 in 2007. (All $ are 1996 terms). This is exclusive
of the costs of errors.refer back to that 20-21%.There were 200M
income tax returns filed last year, 1 Billion Info returns, $88M
refunded. The IRS collects $1.7T annually. IRS has a 66 page plan
for strategic growth of the E-file program. Goals: 100% of all
electronically prepared returns (currently 60%) to be e-filed
by 2003, and 80% of all returns e-filed by 2007. Currently 1 in
4 tax returns is electronically filed. That was 21.2M e-filed
in 1999, (19.9% increase), 2.5M online (161% increase) and 5.7M
telefiled.
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