Ask the IRS experts about e-file!

IRS presents

March 27, 2001

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Gail38: How long has e-file for tax returns been in existence, and how successful is it?

Julie-IRS: It has been in existence since 1986 with over 200 million returns successfully filed.

Maxanne-IRS: As e-filing has progressed each year, we have introduced other initiatives to increase our electronic filing. We have incorporated Telefile, filing through your preparer and filing through your personal computer. Over the past several years, all of these programs have increased, and with the initiatives of paperless signature and the direct deposit and payment program, electronic filing has enabled taxpayers to do their returns very easily, and hopefully paperlessly. A lot of software companies have developed software packages to support electronic filing. They assist the taxpayer in getting their return accepted, and provide instructions to follow up with any other items that are needed to provide the IRS with a complete return.

Fun E Lady: Is there any special software that is required to file electronically?

Maxanne-IRS: There is software that supports electronic filing. We have certain locations on our website where we list companies that support free filing, and we also have a webpage that supports all of the online companies where, for a small fee, you can pay to have your return transmitted. With this method or filing through your computer, the taxpayer would prepare their own return, pass it through to a third party transmitter, and then it would be sent to the IRS. Depending on if the return was accepted or rejected, the information would come back through the third party, and the information whether it was accepted or rejected would be returned to the taxpayer. If it was accepted, there is nothing more to send in to the IRS if you use the self-select PIN. If the self select PIN is not used, they will be provided a Form 8453-OL to complete and send to the IRS. If their return rejects, the online company will assist the taxpayer in getting their return accepted (if the taxpayer chooses to re-send their return electronically).

ZeldaTX: How does IRS e-file work?

Maxanne-IRS: We have covered the software issue, and you can check the website at www.irs.gov for a transcript in a few days.

Julie-IRS And Maxanne-IRS: You or your tax professional prepare your tax return. In many cases, the tax professional is also the Electronic Return Originator (ERO) who is authorized to file your return electronically to the IRS. Ask your tax professional to file your return through IRS e-file. You sign your electronic tax return by either using a Self-Select PIN for e-file for a completely paperless return, or by signing Form 8453, U.S. Individual Income Tax Declaration, for an IRS e-file Return. After you sign the return using a Self-Select PIN or Form 8453, the ERO transmits the return to the IRS or to a third-part transmitter who then forwards the entire electronic record to the IRS for processing. Once received at the IRS, the return is automatically checked by computers for errors and missing information. If it cannot be processed, it is sent back to the originating transmitter (usually the ERO) to clarify any necessary information. After correction, the transmitter transmits the return to the IRS. Within 48 hours, (two workdays) of transmission, the IRS sends an acknowledgement to the transmitter stating the return is accepted for processing. This is your proof of filing and assurance that the IRS has your return information. The ERO then sends Form 8453 to the IRS. If due a refund and by choosing direct deposit, you can expect to receive your refund in as few as ten days.

A Ling: Can I e-file my state return with my federal return at the same time?

Maxanne-IRS: Yes. Most states offer electronic filing, and yes, you can file your federal along with your state return. If you file through your personal computer using tax prep software, most tax prep software offers electronic filing of your state return as well.

Cassie G: Is there a fee for IRS e-file?

Julie-IRS And Maxanne-IRS: The IRS does not charge a fee for electronic filing. Some authorized IRS e-file providers (EPOs) charge a fee for providing this service to their clients, while others may offer it free of charge. However, this fee cannot be based on any figure from the tax return. Fees vary depending upon the tax professional you choose and the specific services you request. With IRS e-file, you can prepare your own return and pay a professional only to transmit it electronically, or you can pay to have your return both prepared and transmitted. Whichever you choose, shop around for a tax professional who offers the services you need at an acceptable cost to you. For free Internet filing options, visit the IRS website at www.irs.gov.

Maxanne-IRS: For individuals filing their own tax return, you can check the IRS e-file partner's page or www.irs.gov under IRS e-file partner's page for a listing of software packages which support free internet filing. Also, at www.irs.gov under IRS e-file for individual taxpayers, click under IRS e-file using a personal computer, and you can find a listing of other online companies which support filing through your personal computer. They may charge a small fee to electronically send your return to the IRS.

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