What are the advantages to e-filing

E-filing is Safer

E-filing and choosing direct deposit is the safest and fastest way to receive your refund. The IRS requires security measures for e-filed returns. This helps protect your sensitive personal information and decreases fraud and identity theft risk. However, when you mail your return, your data won’t be encrypted.

More Accurate

Data entry for paper-filed returns is entered by hand even when the return was first prepared electronically and then printed and mailed to the IRS. In contrast, data from e-filed returns is transferred directly into IRS computers. Should a Social Security number or Employer Identification Number be entered incorrectly, the e-filed return is rejected, and the error can be quickly reviewed and fixed by the tax professional or the taxpayer. Further, data from paper-filed returns is stored in the same IRS database as the data from e-filed returns. So, once those returns hit the IRS database they all have the same risk level.

Generates Increased Efficiency in Processing

Prior to transmission, the return information is subjected to stringent error checks. Once transmitted, the Service Center performs a more extensive error check, resulting in a filed return with significantly low error rates.

Faster Refunds

Because of increased efficiency, coupled with the new IRS customer account infrastructure (CADE 2) the time it takes to issue your refund is reduced. If you are able to receive your refund electronically, you may receive your refund sooner than you thought.

Convenient Payment Options

If you owe the government money, you will be pleased with the convenience of our credit card payment option to pay off the Balance-Due amount. In all cases, payment of a paper voucher will be available to print and mail to the Government. Tax payments need to be made on or before the due date of the return, normally April 15th, even when you e-File. Direct Debit (Electronic Funds Withdrawal or ACH Debit) is another payment option also available through our system. MyFreeTaxReturn.com was a proud participant in the IRS pilot of this program under the name “ACH Debit Pilot Program” during the 1998 tax year filing and the Direct Deposit pilot even prior to that period.

Safer Postmarked Capabilities

Electronically filed returns are acknowledged by the IRS and if accepted, the returns will be identifiable with a Submission ID.  Additionally, MyFreeTaxReturn.com provides an electronic postmark (ePostmark) for all the returns filed. The benefits of obtaining an ePostmark provides a peace of mind to know your return was filed and accepted or rejected. Matters of uncertainty about your return being received by the IRS diminish in e-filing as opposed to paper filing. This postmark will have the same effect and validity to the IRS as the postmark affixed at the post office, and as an added advantage, will be correlated with the e-Filed return. Such a definitive relationship may not be obtained through the regular post office postmark, even if a method of mailing certification is employed.

Cost Effective

Due to its efficiency and desirability, it is understood that the IRS deemed the cost of e-Filing a “de minimis fringe benefit.” Thus, if employers wish to provide this benefit to their employees – where the cost would be a deductible employee benefit expense for the employer – the benefit would not be a taxable income to the employees. Employers may provide this benefit as a holiday gift to their employees.