E-filing
E-filing What Is an E-File (Electronic File)? By using tax preparation software that has been preapproved by the appropriate tax authority, such as the U.S. Internal Revenue Service (IRS) or the Canada Revenue Agency, taxpayers can electronically file their tax returns. E-filing has grown in popularity over the past several years due to its efficiency and convenience. According to the IRS, electronic filing speeds up tax refunds and helps prevent delays.
Advantages of Electronic Filing • E-filing saves the tax agency time and money because data from a return is transmitted directly to the tax authority's computers through electronic filing, input errors are considerably reduced, saving both time and money. • According to the IRS, using tax preparation software to file electronically reduces math errors and missing entries made by taxpayers. • If there are no problems with their tax return, most taxpayers who e-file and give direct deposit information can anticipate receiving any due refund within 21 days. • The fact that the tax filer receives an acceptance or rejection notification within 48 hours—typically within 24 hours—after transmitting the tax return is another advantage of e-filing. • Rejection informs the taxpayer that the return has not been accepted whereas acceptance verifies that the documents have been received and are in the system.
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