E-filing of Taxes: How To Do It & What Can Go Wrong

The 2012 tax filing season is here and the IRS, taxpayers, and tax thieves are busy. If you are unsure about paying taxes on the income you earned in 2012, you may use the ITA (Interactive Tax Assistance) tool of the IRS. Whether you are required to file taxes or not depends upon your income level, age, filing status, and type of income.

Dangers of E-filing
Many taxpayers and tax preparers prefer to e-file their taxes because it is convenient and fast. The IRS boasts that last year nearly 100 million taxpayers filed their tax returns through IRS e-file. Granted that e-filing is fast and easy, but it is not without glitches.

Taxpayers who are not careful can mistakenly send their tax information to tax scammers using fake IRS web pages. In case of inaccuracies on the tax return, the IRS sends a notification with instructions on how to fix it. Taxpayers who e-file must fix the problem and re-submit the return.

Taxpayers will receive confirmation from the IRS within 48 hours after they e-file their return. If they don't, they should immediately contact the IRS because the threat of phishing is forever present online.

Faster Filing & Receiving of Refund
Because an e-filed return reaches the IRS earlier, taxpayers can expect a faster refund. The IRS will issue a refund in less than 21 days. Taxpayers can check the status of their refund on the IRS' "Where's My Refund?" section, and choose to deposit their refund in their bank account as well.

Taxpayers can either e-file their tax return after it has been professionally prepared or ask a tax preparer to file it for them. Before filing, ensure the information entered is accurate, along with the PTIN (Personal Tax Identification Number) of the tax preparer. Smart filing is safe filing.

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