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E-file Taxes Explained

27 Apr

If are new to e-file taxes, or unsure of how the e-file process works, this guide will help shed some light on what e-filing is all about.

Did you know that approximately 100 million people electronically filed their 2009 tax return? This number has been growing, year over year, for quite some time. Since 1990, more than 1 billion people have relied on the e-file option. This is now the norm as opposed to the exception.

It is hard to believe that the IRS started the e-file program in 1986. At this time, they rolled out the new program with the help of professional tax preparers and software companies. The first year allowed for only five parties to file electronically – this resulted in roughly 25,000 electronically submitted returns. During this first year, a return could only be e-filed if no additional payment was due. Fortunately, this is no longer the case.

By 1991, both the federal and state e-file programs were in full swing. The 1994 tax year was a big one – more than 14 million returns were electronically filed.

There are many options for those interested in e-filing their tax return. You can use the IRS Free File Program or tax software. On top of this, most tax professionals e-file taxes when they do a client's return.

There are many benefits of electronically filing a return. Above all others, you can do so with speed and efficiency. On top of this, when you e-file you will receive a faster refund. This is particularly true if you opt for direct deposit.

The IRS has only been offering the ability to e-file for 25 years. Although it is a relatively new program, it continues to grow exponentially.