Tax accountants report that many older clients are afraid of the security of their private information when filing online tax returns. Younger people generally are more comfortable with efiling, according to reports. "Tax returns filed using the IRS e-file system are extremely safe," says the IRS spokesperson.
Plus, according to all reports, taxpayers are able to get tax refunds much more quickly. According to the IRS, "taxpayers can get their refunds in as little as 10 days if they sign up for both electronic filing and direct deposit of their refunds.
According to the IRS, there is an even greater benefit of e-filing: accuracy. "An electronically-prepared and filed tax return has an error rate of less than 1%," the IRS said. "Which compares to an error rate of nearly 20% for paper returns."
The IRS likes e-filed tax returns for another reason: it costs the IRS less to process e-filed tax returns than paper tax returns.
"E-file is a great option for taxpayers, and this year's record is another sign people enjoy the speed and accuracy of e-file," said Doug Shulman, Commissioner of the IRS.
According to Shulman, if you still haven't filed your tax return for 2008, you can still use the IRS's e-file system. The IRS says it will accept income-tax returns through the e-file system through October 15th, the filing deadline for those who didn't file their returns by the April 15 deadline, if they did file for an automatic 6 month return filing extension.
What to Do If Your Haven't Filed Your Tax Return Yet
Taxpayers should file all tax returns that are due, regardless of whether or not full payment can be made with the return. Depending on an individual's circumstances, a taxpayer filing late may qualify for a payment plan. All payment plans require continued compliance with all filing and payment responsibilities after the plan is approved. It is important, however, to know that full payment of taxes saves you money.
How to File a Late Tax Return
*Gather Past Due Return Information
Make sure you have all income and deduction items documented.
*Prepare and File Forms
Be sure to get the right tax forms.
Payment Options - Ways to Make a Payment
Payments can be made by credit card, electronic funds transfer, check, money order, cashier's check, or cash.
Payment Options For Those Who Can't Pay Everything at Once
The amount of interest and penalties will be less the more you pay now.
You might qualify for one of the following:
1. an extension of time to pay,
2. an Installment Agreement,
3. a temporary delay, or
4. an Offer in Compromise.
You can ask the IRS for more time to pay by going to their website and finding the Online Payment Agreement link. Taxpayers can set up quickly either a short-term payment extension or a monthly payment plan.
A short-term extension gives a taxpayer up to 120 days to pay, and late-payment penalties and interest charges will apply.
A monthly payment plan or installment agreement gives a taxpayer more time to pay. Penalties and interest will continue to be charged on the unpaid portion of the debt throughout the duration of the installment agreement/payment plan.
Taxpayers can also apply for a payment agreement by filling out Form 9465, Installment Agreement Request. This form can be filed along with either an electronically filed return or a paper return.
Do your taxes need a checkup? Maybe you'd like a second opinion from Leo J. Vidal, JD, MA, CPA, The Tax Doctor. Leo will review your taxes for no charge and give you planning ideas to save money in taxes. More information on the so-called IRS E-file Program are available through his site www.thetaxdoctor.info.
Tags: finance, taxes, irs, tax returns, irs tax forms, irs e-file, efile, e-filing, late filing, e-file, efiling