What is e-File?
During the 1980’s the concept of e-filing was not at all a known term. It was after six years since then that it gradually started getting attention as 25000 returns were e-filed in the USA. To put it in simple terms e-file stands for Electronic Filing or sending of income tax returns through the internet to the IRS or state tax authority. The whole thing can be operated through computers as there is free tax software that contains the complete format of federal e-files.
Advantages of e-files:
There are several advantages of e-file:
- When e-filing is done through an electronic process, the tax data and details of tax returns of taxpayers are transferred directly to the IRS computers. This, therefore, reduces manual labor of document scanning. This helps in getting a quicker tax refund. The IRS claimed that e-file is an efficient and fast mechanism and is much less prone to errors compared to traditional tax returns.
- Another factor that makes e-file a better option is its ability to save taxpayers money and cut on the bulk of paperwork. The IRS commissioner Doug Shulman talks favorably about e-file as he reports that millions of American dollars which are the taxpayers’ money is being saved by e-filing processes.
How to pay taxes through e-files?
If you choose to pay your taxes through e-file you cannot do it yourself, working in your own manner. There are proper channels that are to be kept in mind. Some has been discussed below:
- Appointing a registered and licensed tax return preparer.
- Using software programs like Turbotax or TaxAct.
- Using the IRS free filing portal.
The important information that must be known to all is that while filing tax returns through a tax preparer and software program certain fee-charges are applicable. However, on the other hand, filing with the IRS facility is totally free of cost.
Welcome to the CPA firm of Sanjiv Gupta: How we can help?
Sanjiv Gupta is a professional financial advisor cum certified public accountant who runs his corporate business in the USA. He and his associates are experts in the field of personal and business tax payment assortments and offer valuable service to their clients through consultation and guidance. The facilities provided by Sanjiv Gupta’s firm are many. The services offered here are not too expensive and the firm’s prime concern is to provide accurate GAAP and tax reporting services. This results in a substantial saving of the client’s money. The company has its own website and every detail of the company have been given in it. Anyone who wants to get professional help regarding tax, business, and financial matters may contact Sanjiv Gupta at his firm address.