Does My Return Have To Be On Paper?

Table 1-4. Benefits of IRS e-file

IRS e-file (electronic filing) is the preferred method of filing. It's so easy, 40 million people use it. You may be able to file a paperless return, or a return with less paper. This section explains IRS e-file:

• Using a tax professional,
• Using your personal computer, or
• Using a telephone (TeleFile).

IRS e-file

Table 1-4 lists the benefits of IRS e-file. IRS e-file uses automation to replace most of the manual steps needed to process paper returns. As a result, the processing of e-file returns is faster and more accurate than the processing of paper returns. However, errors on the return or problems with its transmission can delay processing.

As with a paper return, you are responsible for making sure your return contains accurate information and is filed on time.

Using e-file does not affect your chances of an IRS examination of your return.

State returns. In most states, you can file an electronic state return simultaneously with your federal return. For more information, check with your local IRS office, state tax agency, tax professional, or the IRS web site at www.irs.gov.

Refunds. You can have a refund check mailed to you, or you can have your refund deposited directly to your checking or savings account.

With e-file, your refund will be issued in half the time as when filing on paper. Most refunds are issued within 3 weeks. If you choose Direct Deposit, you can receive your refund in as few as 10 days.

Offset against debts. As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state tax, a student loan, or child support. See Offset Against Debts under Refunds, later.

Refund inquiries. If you do not receive your refund within 4 weeks after your return was accepted by IRS, you can call TeleTax Refund Information. See What is TeleTax in your tax forms package for information on how to use this service.

If TeleTax has no information about your return, contact your tax professional or electronic return transmitter for the date IRS accepted your return. If your return was accepted more than 6 weeks ago, contact the IRS. Explain that you filed your return electronically and that TeleTax has no information on it. Also, provide the first social security number shown on your return and the date the IRS accepted your return.

Balance due. If you owe tax, you must pay it by April 15, 2002, to avoid late-payment penalties and interest. You can make your payment electronically by scheduling an electronic funds withdrawal from your checking or savings account or by credit card.

See How To Pay, later, for information on how to pay the balance due.

VITA or TCE. The IRS Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs may be able to help you file your return electronically. For information on these programs, call the IRS.

Personal identification number (PIN). If you e-file your return, you can sign your return electronically by creating your own Personal Identification Number (PIN). This PIN serves as your signature and can only be used if you file electronically using tax preparation software or through a tax professional. (It can even be used by first-time filers who were 16 or older on December 31, 2001.) To create a PIN, you must know your adjusted gross income and total tax from your 2000 tax return (prior to any adjustment). These amounts, along with your name, social security number, and date of birth, will be used to verify your identity.

If you are not eligible or choose not to use a PIN to sign your return electronically, you must complete Form 8453 or Form 8453-OL, whichever applies.

Using a Tax Professional

Many tax professionals file returns electronically for their clients. You can prepare your own return and have a professional electronically transmit it, or you can have your return prepared and transmitted by a tax professional. In either situation, you can sign your return using your PIN.

Depending on the tax professional, and the specific services requested, a fee may be charged. Look for the "Authorized IRS e-file Provider" sign or search for a provider near you on the IRS web site at www.irs.gov (click on Electronic Services).

Form 8453. Your tax professional may ask you to sign Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return. Both spouses must sign if a joint return is being filed. Your tax professional will file the Form 8453 with the IRS. Your tax professional is required to give you the preparer-signed copy of your return, including a copy of the completed Form 8453. This material is for your records. Do not mail this copy to the IRS.

Using a Personal Computer

A computer with a modem and/or Internet access is all you need to file your tax return using IRS e-file. You can buy tax preparation software at various electronic stores or computer and office supply stores. You can download software from the Internet or prepare and file your tax return completely on-line by using a tax preparation software package on the Internet (nothing to buy or install). Best of all, you can e-file your tax return from the comfort of your home any time of day or night. Sign your return electronically using your PIN to complete the process. To find a list of software companies that participate in the IRS e-file program, visit our web site at www.irs.gov.

Form 8453-OL. After the IRS has accepted your return, you may have to send the IRS Form 8453-OL, U.S. Individual Income Tax Declaration for an IRS efile On-line Return. Form 8453-OL is available through your electronic return transmitter.

Using a Telephone (TeleFile)

If you receive a TeleFile tax package, you may be able to file your Form 1040EZ information over the phone. If you are eligible to use TeleFile, IRS will send you the TeleFile tax package automatically. You can use TeleFile only if you receive the package. You cannot order it.

To file using TeleFile, follow the instructions in the TeleFile tax package. The call takes about 10 minutes and is free. You must use a touch-tone phone.

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