| Over the last few years, there have been several | | | | has been timely filed. |
| advantages, or even requirements, provided by state | | | | #2 If I owe with my return, is the payment due when |
| governments and the IRS to encourage tax filers to | | | | my return is e-filed? |
| file their returns electronically. Statistics show the | | | | E-filing the return before the due date does not |
| percentage of e-filers is on the rise. With tax return | | | | accelerate the due date of taxes. Payments can still |
| deadlines right around the corner, we want to share | | | | be remitted separately any time before the due date |
| our thoughts on the questions we receive most often | | | | of the return, even if the e-file is processed earlier. |
| from clients about e-filing. | | | | Consider the following strategy. If you are due a |
| Top 5 questions I am asked about e-Filing: | | | | refund on your state return, but owe on your federal |
| #5 Do I have to e-file? | | | | return, then e-file both returns early. You could receive |
| No. The IRS does not currently require any tax return | | | | your state refund in time to use it towards your |
| to be e-filed, however several states have | | | | federal payment due. The same holds true if you are |
| implemented this requirement. In the past, the state has | | | | due a refund on your federal return and owe on your |
| sent a "reminder" notice that future returns should be | | | | state return. |
| e-filed, but have warned that paper returns filed in the | | | | #1 Why should I e-file? |
| future will either be rejected or subject to a penalty. | | | | Here are a few reasons to e-file: |
| This most likely means that e-filing state income tax | | | | The risk of a return being lost in the mail or misplaced |
| returns in these states will be mandatory, and we can | | | | is minimized. Usually a taxpayer is not notified of a |
| anticipate that other states will add similar | | | | missing return until months or even years later. When a |
| requirements. | | | | return is e-filed, confirmation of acceptance (receipt) by |
| #4 Do I have to provide my bank account information? | | | | the IRS or state is provided within a few business |
| No. The only time your bank account information | | | | days. |
| needs to be provided is if you would like your refund | | | | Paper filed returns are manually entered into the |
| directly deposited into your bank account, or if you | | | | government's system, meaning that an input error |
| would like your payment directly drafted from your | | | | could trigger a tax notice. |
| bank account. If you are hesitant to provide your bank | | | | Part of the e-filing acceptance process used by the |
| account information to government agencies, you can | | | | IRS and state governments includes a "pre-check" of |
| receive your refund by check or if you owe, you can | | | | certain items. In order for an e-filing to be accepted, |
| make your payment by mailing in a check. | | | | these items must be correct. This greatly minimizes the |
| #3 How long does it take to e-file? | | | | chance of receiving a tax notice. |
| Usually a return is accepted by the IRS or state within | | | | Returns are processed more quickly; if you are due a |
| a few business days of the return being submitted. | | | | refund, it will be sent sooner. |
| The acceptance provides confirmation that the return | | | | |