Electronic tax filing: how is it working?
The National Public Accountant › Vol. 40 Nbr. 4, April 1995
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Summary
Electronic tax filing is becoming more popular as indicated by around 14 million electronically-filled tax returns in 1993. The IRS expects the figure to reach 80 million by the year 2000. Besides reducing paperwork, the main benefit of Electronic Filing Systems (EFS) is faster refunds. However, balance-due taxpayers find no advantages in using EFS, which has also failed to be totally paperless and requires considerable startup costs.
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Electronic tax filing: how is it working?
In the words of the IRS, electronic filing of tax returns is "the wave of the future." In fact, many tax return preparers believe that electronic tax filing (ETF) will be mandatory at some future point in time.
Approximately 14 million individual tax returns were filed electronically for the 1993 tax year. This figure represents about 12% of all individual Federal income tax returns. The number of electronically filed tax returns is expected to rise to 80 million for the year 2001, according to IRS projections. This rapid growth has implications for tax practitioners who, on whole, have been reluctant to board the ETF bandwagon. Before deciding whether to adopt ETF, practitioners should be aware of the alternative ways of filing electronically. This article critiques the current electronic filing system, discusses a new electronic system which is on the horizon and suggests that preparation...See the full content of this document
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