You may be able to file a paperless return, or a return with less paper. This section explains:

Table 1-4 Benefits of e-file

1. IRS e-file (electronic filing):
   1. Using a tax professional,
   2. Using your personal computer, or
   3. Using a telephone (TeleFile), and
2. Computerized returns.

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, 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, or tax professional.

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

With e-file, your refund will be issued in half the time as when filing on paper (even faster if you choose direct deposit). Most refunds are issued within 3 weeks. In many cases, you can receive your refund in about 14 days, particularly if you choose direct deposit. However, some refunds may be temporarily delayed as a result of compliance checks. These checks make sure that returns are filed accurately and the refund is correct.

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, 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. The TeleTax number for your area is listed in your tax forms package. Before you call TeleTax, please have the following information from your return available:

1. The first social security number shown on the return,
2. Your filing status, and
3. The exact whole-dollar amount of your refund.

If the TeleTax recording tells you the date your refund was issued, you should receive the refund within a week of that date. If you do not receive the refund by the end of that week, contact your IRS office. See the telephone numbers listed under Calling the IRS in your tax forms package.

If TeleTax has no information on 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 have a balance due with your return, you must pay it by April 15, 1999, to avoid late-payment penalties and interest. Generally you should mail your payment with the Form 1040-V, Payment Voucher, included in your tax forms package (or provided by your tax professional or electronic return transmitter).

Direct debit. If you have a balance due on your 1998 tax return, you can have your checking or savings account debited directly for the amount of the balance due.

Free help. The free 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.

Using a Tax Professional

Many tax professionals file returns electronically for their clients. You can prepare your own return and have a professional transmit it electronically, or you can have a professional both prepare it and transmit it. Look for the "Authorized IRS e-file Provider" sign. Tax professionals may charge a fee to e-file your return.

Form 8453. Your tax professional will ask you to sign Form 8453, U.S. Individual Income Tax Declaration for Electronic Filing. Both spouses must sign if a joint return is being filed. Your tax professional will file the Form 8453, along with your Forms W-2 and other required documents, 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

If you have a computer, a modem and tax preparation software, you can e-file your return electronically from your home. Tax preparation software offering the e-file option is available at your local computer retailer or through various web sites over the Internet. Using your personal computer, you can file 24 hours a day, 7 days a week. You may be charged a fee for having your return transmitted to the IRS. Your electronic return transmitter will inform you if your return is accepted by the IRS.

What to send to IRS. You will then have to send the IRS Form 8453-OL, U.S. Individual Income Tax Declaration for On-line Filing, along with your Forms W-2 and other required documents. Form 8453-OL is available through your electronic return transmitter.

Note. If you filed electronically last year, you may receive a post card in the mail with an e-file customer number (ECN). If you meet the requirements, you can use your ECN to file your return and not have to file any paper forms.

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.

The call takes about 10 minutes. To file using TeleFile, follow the instructions in the TeleFile tax package. You must use a touch-tone phone, your filing status must be single or married filing jointly, you must live at the address printed on your TeleFile Tax Record, and you cannot claim any dependents. In addition, you must meet the other requirements explained in the TeleFile tax package.

TeleFile is a paperless system. You will not have to mail a paper tax return or Forms W-2 to the IRS. If you owe additional tax, see your TeleFile package for information on how to send payments.

Computerized Returns

Almost anyone who files a tax return (Form 1040, 1040A, or 1040EZ) can now file a 1040PC return instead. You prepare a 1040PC return on a personal computer. It generally has fewer pages than a conventional return.

The computer prints the return in a three-column "answer sheet" format. It prints line numbers and dollar amounts (and/or supporting explanations if necessary) only for lines on which you made an entry. Supporting tax forms and schedules are also printed in this format. As a result, an 11-page conventional return requiring forms and schedules can be printed as a two-page 1040PC return. For your records, the computer will also print out a legend paper with line item descriptions.

If you need to list more items than fit on a regular tax return (such as more dependents than there are lines for), you can list them all on the 1040PC and print them in order, without the need for attaching an additional statement.

Tax preparation software that includes the 1040PC print option is checked and accepted by the IRS and has the 1040PC logo. It can be processed faster and more accurately than the regular tax return. Software packages are available at many computer software stores. They are not available from the IRS. For more information, call the TeleTax number for your area listed in your tax forms package.

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Publication 17 | 1998 Tax Year Archives | Tax Help Archives | Home