As you may have noticed, almost everything is being done online now. From shopping to researching, communicating to anyone in the world – everything is going through the world wide web. Now, even filing your taxes can also be done online through the E-file system!
We all know that the main idea behind doing things online or electronically is the accessibility and the convenience it brings to us. However, it also brings security risks if not done properly. If we are to apply this thought with filing income taxes, it means critical information is being made potentially public so we need to take steps to make sure the process is secure. E-file systems brings convenience as the entire process is faster than paper filing which means you will save precious time. When E-file returns are processed with secure services (like tax professional use), it can also provide that security you need. It saves you time with the entire process including obtaining the refund (if applicable) faster compared to manually paper filing. Since you will be entering the information online, it means less errors since the e-file system checks your information with its database. In terms of security, although some might feel that doing processes online is unsecure, for tax filing it is the other way around if done correctly. More risk in terms of security is involved with the manual process as the papers or documents you mail the IRS can get lost in the mail and your personal information can be seen by anyone.
Another benefit of E-file is that you get to know if IRS the has received the income tax return as you will get a confirmation of both receipt of filing and the start of processing. If IRS has not accepted the return you filed, then you will be notified within 24 hours with instructions on how to correct the return so you can redo and refile your return. Last but not the least benefit to E-file is that it is environmentally-friendly – since it avoids all the paper involved with a paper filed return.