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Electronic Filing of Tax Returns: Faster, Easier, and More Convenient

Strategic Insights

— 2 min read

Electronic filing of tax returns has become a popular option for taxpayers due to its convenience, speed, and accuracy. According to Eric Steinhouse, vice president of H&R Block, electronic filing provides taxpayers with peace of mind knowing that the IRS has received their return. This tax season, the IRS is cross-checking all social security numbers and names with information provided by the Social Security Administration, which has affected taxpayers who have not updated their social security accounts with their married name.

Key Takeaways:

  • Electronic filing of tax returns is faster and easier than mailing it to the IRS, with processing times reduced to a few days for refund anticipation loans, a few weeks for IRS direct deposit or paper check, and 6-to-8 weeks for traditional processing.
  • Taxpayers who owe the IRS money can benefit from electronic filing through a file now, pay later arrangement, allowing them to know that the IRS has acknowledged receipt without having to pay until April 17, 1995.
  • The IRS is cross-checking all social security numbers and names with information provided by the Social Security Administration, which affects taxpayers who have not updated their social security accounts with their married name.
  • H&R Block provided tax preparation or electronic filing services to over 15 million clients last year, making it the world's largest tax services company.
  • Many states are allowing state tax returns to be filed electronically, in addition to the growing popularity of electronic filing among taxpayers.

Statistics:

  • 6-8 weeks: the traditional processing period for tax returns mailed to the IRS.
  • 6-8 weeks: the additional time it takes for taxpayers to receive their refund after responding to any discrepancies with the IRS.
  • 15 million: the number of clients H&R Block provided tax preparation or electronic filing services to last year.
  • April 17, 1995: the deadline for taxpayers to pay the IRS under a file now, pay later arrangement.
  • 1995: the year in which many states began allowing state tax returns to be filed electronically.

Sources:

  • H&R Block, "Filing your tax return electronically is faster and easier than mailing it to the IRS..."
  • IRS, "The IRS is cross-checking all social security numbers and names with information provided by the Social Security Administration..."
  • Social Security Administration, "Taxpayers who have not updated their social security accounts with their married name will have their tax return processed only after they respond to any discrepancies with the IRS."

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