IRS unveils upgrades to e-filing, open to all taxpayers for free
The IRS will unveil new software and forms on Friday to help taxpayers file their federal taxes electronically for free.
As the tax season opens during a tumultuous economic time, more taxpayers will be looking for their tax refund a lot sooner, said David Williams, IRS director of electronic tax administration and refundable credits. He talked with reporters during a conference call from Washington, D.C.
"Virtually all taxpayers now could e-file this year," Williams said. "It will be faster, safer and more secure, 24 hours a day. And given the economic situation we're in, it's the best way."
The IRS offers Free File, a free federal tax preparation and electronic filing program developed through a partnership between the IRS and the Free File Alliance LLC, a group of private-sector tax software companies.
Last year, about 90 million had e-filed, including about 3.5 million people in Illinois. While e-filing previously focused on those earning $56,000 or less, this year it will be open to everyone.
Starting Friday, taxpayers could go to www.irs.gov to learn about new software options in both English and Spanish that eliminate the $10 to $12 fees that other programs had charged. It also provides an e-mail acknowledgment within 48 hours that the IRS has accepted the return.
Taxpayers who use e-file and do direct deposit could receive their refund in about 10 days. Even those who owe money could still e-file and pay by April 15.
"Any time the government makes it easier and more efficient for taxpayers to file, it's a win-win situation," said Jim King, a CPA with Balasa Dinverno & Foltz LLC in Itasca.
While the e-filing system upgrades and free filing are attractive, some preparers could have reservations about the system, said Mark La Spisa, co-founder of Vermillion Financial Advisors Inc. in South Barrington.
"I have two fears about e-filing when it comes to the do-it-yourselfers," said La Spisa. "It does nothing about errors that happen with self-filers when it comes to deductions and the use of proper schedules. It won't eliminate people from taking dedications they don't deserve or missing dedications they are entitled to have."
Federal e-file
The IRS had about 90 million tax returns via e-file during 2008. Here's what it looks like in Illinois:
• Last year, about 3.5 million Illinois returns were e-filed.
• This year, the IRS expects about 3.6 million e-filed returns from Illinoisans.
• About 65 percent of the 5.9 million Illinois tax filers are eligible for Free File and can prepare and e-file their federal taxes for free.
Source: IRS
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