May 17, 2012

IRS Tax Help: The IRS Goes Green

Because of the increase of electronic filing options and the ease of usability, and reduced costs, the IRS will no longer send tax packages containing forms, schedules, and filing instructions to individual and business taxpayers through snail mail. Last year, only 8 percent of taxpayers received paper packages. 96 million individual tax returns were filed online.

This past October, the IRS sent postcards in the mail to the 20 million taxpayers who filed paper forms explaining where the tax forms are online and how to file them. The forms and instructions are downloadable from IRS.gov. Taxpayers can also get the forms and instructions by visiting a local IRS office, a participating library, or a participating post office. The IRS will make the forms and instructions available in these forms early this month, January 2011.

Taxpayers have many free options. The most popular means of filing tax returns is to get the information online at IRS.gov or to visit your local IRS office, a participating library, or a participating post office. Another online resource is IRS Free File, an electronic filing option which provides access to free brand-name tax software or access to online forms which you can fill out plus free electronic filing. Anyone can use Free File. Taxpayers who make $58,000 or less are able to use one of about 20 free commercial software programs. For the Free File Fillable Forms and the online version of IRS papers forms, there is no income limit.

Taxpayers who make $49,000 or less can use the Volunteer Income Tax Assistance (VITA) program, which offers free tax preparation and often free online filing. For taxpayers who are 60 years of age or older, the Tax Counseling for the Elderly program also offers free tax counseling and basic income tax preparation.

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Where to start if you want to E-File Taxes

With the rapid rise and spread of Internet connectivity it has become more popular than ever to E-file taxes online. Unfortunately as with all new technologies there is much confusion that surrounds the process of E-filing taxes. The IRS has done its best to make the process as simple as possible however the inherent complexity of processing tens of millions of tax returns online combined with the many different ways online applications can be processed along with the fact that state and federal taxes are filed online in different ways; E-filing taxes can seem downright messy to the unprepared.

For starters the easiest way to go about E-filing taxes is to use the Free File program offered by the IRS. This program is available through the IRS website though only for people who make $56,000 or less every year. The idea being that if you make more than $56,000 you can afford to pay a few dollars to file your taxes electronically using an IRS affiliated partner.

Even if you don’t make over $56,000 a year it may be beneficial to use an IRS affiliated partner to help you with E-filing taxes; especially if you are unfamiliar with the process of filing taxes. To find a list of affiliated IRS partners simply logon to the IRS website and access that information through their E-file portal.

Some of the benefits of filing your taxes electronically include: faster returns, a greater degree of accuracy, fast confirmation of your submission as well as increased security as you don’t have to worry about your personal data being sent through the mail. E-filing taxes may be relatively new however it is most definitely the wave of the future so if you haven’t taken the plunge yet it is at least worth looking into so you can become familiar with the process.

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