E-File Helps Refunds, Payments
Are you one of the almost 100 million taxpayers who will receive a refund this year? The IRS says that requesting direct deposit and filing your tax return electronically (e-filing) will put that money in your pocket faster and easier.
Every year, more taxpayers find out how safe and easy it is to have their tax refund deposited directly into their checking or savings account. This option is available for both e-filers and paper return filers.
When you file electronically, your refund will be issued within three weeks, about half the time it would take if you filed a paper return. If you also choose direct deposit, you might receive your refund in as few as 10 days.
Last year, more than 40 million taxpayers electronically filed their tax return. People who e-file find it the fastest and easiest way to do their taxes.
The electronic filing program checks for errors or missing information, increasing the accuracy of your return and reducing the need for correspondence with the IRS to clarify errors or omissions. Once your return is accepted for processing, you will receive a confirmation from the IRS.
And you can usually file a state tax return at the same time you electronically file your federal tax return.
Finally, with electronic filing, you can file your return early but wait to pay any balance due by the tax deadline of April 15, 2002.
You might want to reduce the size your refund and put more money in your paycheck throughout the year. You and your employer can refigure your federal income tax withholding, allowing the correct amount to be deducted.
For information on e-filing, please contact your tax preparer.
This daily Tax Tip has been provided by the Internal Revenue Service.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.