Filing Taxes Online

Socket Tech Talk:
E-Filing: Tips and warnings for online taxpayers

With warmer weather launching spring into full swing, it can be very easy to put off one of the most important spring tasks: filing taxes. Even though the April 15 deadline is approaching quickly, many Missourians still have not filed taxes. Taxpayers can be at ease, however, because the Internal Revenue Service offers a convenient e-filing option to help those with time constraints.

According to the IRS, filing income taxes online results in faster refunds, greater accuracy and quick confirmation, giving taxpayers assurance during a usually stressful time. Other benefits include secure and confidential submission, a “file now, pay later” option, 24/7 access, and the ability to confidentially save tax information for next year. Because of these benefits, the popularity of e-filing is increasing dramatically. As of March 6, 2009, more than 18 million income tax returns were filed using home computers—20 percent more compared to just one year ago.

The IRS also considers e-filing to be the most secure method of handling sensitive tax information because of secure online submission. The lack of paper trails associated with e-filing prevents tax forms from getting lost in the mail and therefore inhibits the increased risk of identity theft, ultimately ensuring the safety of last-minute filing.

Despite its acclaimed safety, many Missourians may still have apprehensions when filing taxes online. For maximum security, follow safety measures from experts like Chris Lloyd, a technical support representative and installer at Socket, a Missouri-based telephone and Internet provider.

“There are a number of precautions you should take when submitting private information via the Web,” states Lloyd. “Ensure passwords are secure, remember to log out of all tax-related programs upon completion of the session, and if you choose to use an online tax preparation service, check the privacy policies before selecting one.”

The Internet also identifies secure Web sites with specific addresses and symbols. Make sure the tax preparation Web address begins with “https” to indicate it is a secure site. In addition to the specific URL, secure sites are identified with either a closed padlock or unbroken key icon at the bottom of your Web browser.

Aside from secure online submission, e-filing is a reliable way to ensure information is properly recorded by the IRS in a timely manner. When filing taxes on paper, IRS employees must retype all handwritten information, so messy handwriting and human error can result in information being entered incorrectly. By automatically calculating computations, e-filing also prevents common mathematical errors that are made on paper tax forms.

Taxpayers also have other options to reinforce the security of e-file by selecting a reputable e-file provider. Well-known companies such as H&R Block, TaxACT and TurboTax all have credible options for filing online. For a more extensive list of e-file providers authorized and supported by the IRS, visit www.irs.gov. Nearly all e-file providers do charge a small fee, however, a wage earner who earns $56,000 a year or less may qualify for Free File; information on Free File can also be found on the IRS's Web page.

While e-filing used to be recommended only for wage earners with a straightforward return, providers have begun altering electronic filing to better meet taxpayers’ needs. Tax preparation providers now offer different packages to better meet the needs of individuals, families and businesses. However, for some taxpayers there are a few situations where e-filing is not the best option. According to tax professional and writer for About.com William Perez, e-filing is not recommended for Missourians claiming a dependent who has already been claimed by someone else, or anyone wanting to submit a tax form that is not offered through e-file.

“E-filing may not be for everyone,” says Lloyd. “But e-file providers are working hard to continually improve user-friendly programs, and to accommodate the growing needs of busy taxpayers.”

Do you have a technology-related question you'd like to see featured in Socket Tech Talk? Let us know by visiting www.socket.net/techtalkfeedback or by calling 1-800-762-5383.

Socket Tech Talk is provided as a service to distribute general information concerning technology-related topics. Please consult your local computer expert for information specific to your situation.


Return to Tech Talk Home