Electronic tax filing
Encyclopedia
E-file is a system for submitting tax
documents to the Internal Revenue Service
through the internet
or direct connection, usually without the need to submit any paper documents. Tax preparation software with e-filing capabilities are available as stand alone programs or through websites or tax professionals from major software vendors for commercial use.
Of the 139.3 million U.S. returns filed in 2007, 79.98 million or about 57.4 percent were filed electronically. In 2010 a total of 129.3 million U.S. returns were filed, and 93.4 million were filed electronically. In other words the percentage of returns filed electronically increased to 72.3 percent of total returns.
Taxpayers can e-file for free using the IRS Free File service, either using a vendor's tax software product, if eligible, or by using online fillable forms.
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Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
documents to the Internal Revenue Service
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...
through the internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
or direct connection, usually without the need to submit any paper documents. Tax preparation software with e-filing capabilities are available as stand alone programs or through websites or tax professionals from major software vendors for commercial use.
Of the 139.3 million U.S. returns filed in 2007, 79.98 million or about 57.4 percent were filed electronically. In 2010 a total of 129.3 million U.S. returns were filed, and 93.4 million were filed electronically. In other words the percentage of returns filed electronically increased to 72.3 percent of total returns.
Taxpayers can e-file for free using the IRS Free File service, either using a vendor's tax software product, if eligible, or by using online fillable forms.
History
The IRS started electronic filing in 1986 to lower operating costs and paper usage. E-filing originally used the processing system developed in 1969 by the IRS, but since 2003, the IRS has been developing a new enhanced processing system called CADECustomer Account Data Engine
Customer Account Data Engine is an update to the IRS e-file system, used for filing United States income tax returns, that is currently under development.- Development :...
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See also
- Electronic Tax Administration Advisory CommitteeElectronic Tax Administration Advisory CommitteeThe Electronic Tax Administration Advisory Committee is a 14-member panel of the United States Department of the Treasury authorized under the Federal Advisory Committee Act. ETAAC panel members are appointed by the Secretary of Treasury and serve a three-year term...
- Electronic tax records
- Free File AllianceFree File AllianceThe Free File Alliance is a group of tax preparation companies that have partnered with the Internal Revenue Service to provide free electronic tax filing services to U.S tax payers meeting certain guidelines...
- Refund anticipation loanRefund Anticipation LoanA refund anticipation loan is a short-term consumer loan secured by a taxpayer’s expected tax refund, and designed to offer customers quicker access to funds than waiting for their tax refund...
- Modernized e-FileModernized e-FileModernized e-File is an electronic system for filing tax returns with the Internal Revenue Service of the United States.The MeF system describes tax forms in terms of XML and supports web-based filing. Modernized e-File was originally introduced in 2004, exclusively for corporate tax returns...