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IRS encourages individuals, small businesses, tax practitioners to file returns electronically. (tax info).

With more and more tax practitioners considering how electronically filing returns can increase efficiencies, cut costs, reduce errors, help improve client privacy and security as well as expedite refunds, CPAs are expected to e-file more tax returns in 2003 than in any previous year. In addition, the Internal Revenue Service is increasing its emphasis on its e-file program for the 2003 tax filing season by initiating a national communications program aimed at individuals and small businesses encouraging the use of e-file for 2002 returns. Thus, tax professionals should be prepared to answer more client questions about e-file and be ready to increase their capacity to electronically file tax returns.

The IRS is initiating the communications program to help achieve its goal of receiving 80% of all tax returns electronically by 2007. In the 2002 filing season, 36% of individual income tax returns were electronically filed.

For details about e-file, visit Members may also want to refer to a Nov. 2002 Journal of Accountancy article about e-filing for additional information.

Some Benefits of E-Filing

* Clients receive a proof of receipt by the IRS within 48 hours of filing.

* Clients receive their refunds in half the time as paper filers. If they choose Direct Deposit, they will have their refund in as few as 10 days.

* The error rate in using e-file for individual tax returns is less than 1%. The IRS electronically checks e-filed returns, and if errors are detected, sends a message that alerts the preparer to the error.
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Publication:CPA Letter
Article Type:Brief Article
Geographic Code:1USA
Date:Feb 1, 2003
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