IRS E-File Can Speed Up Refunds

Taxes Irs Friday when the Internal Revenue Service flips the switch to begin accepting electronic returns the number streaming in from Alabama will likely be on the increase. And some will probably be filed using the IRS’s new online fillable tax forms.

by IRS Media Relations Office for Alabama

Published: Wed, January 14, 2009 - 2:45 pm CST Last Updated: Wed, January 14, 2009 - 2:52 pm CST

BIRMINGHAM — Friday when the Internal Revenue Service flips the switch to begin accepting electronic returns, the number streaming in from Alabama will likely be on the increase. And some will probably be filed using the IRS’s new online, fillable tax forms.

The IRS expects about 72 percent of Alabamians to e-file this year, either through their tax preparers or on their own. That would mean that more than 1.5 million Alabama filers will have scrapped paper and pen in favor of the computer mouse, an increase of about 6 percent over last year.

Filers will have more reasons than ever to make the switch to e-file with the IRS announcing the Jan. 16 opening of an expanded e-file program. This year the IRS has added new tax forms that can be filled in and e-filed online, a feature that will allow virtually anyone to e-file at no cost.

“We anticipate that more taxpayers than ever will want a fast refund this year,” said IRS spokesman Dan Boone, “E-filing gives you just that, along with a virtually error-free tax return and confirmation of receipt by the IRS.”

According to Boone, taxpayers who combine e-filing with direct deposit usually get a refund in 10 days or less. Filers who owe taxes can also enjoy the accuracy, ease and safety of e-filing now and can still keep their money until the last minute by authorizing an April 15 direct debit to the IRS.

“People looking to hold down the cost of filing need to use IRS Free File,” Boone said.

Last year, there was a surge in e-file from home computers. About 356,000 Alabamians prepared and e-filed their own returns, an increase of 21 percent from the previous year.

But fewer than 67,000 do-it-yourself e-filers took advantage of the high-quality tax software available at no cost through Free File at IRS.gov.

Free File offers 20 different software options that can assist taxpayers with Adjusted Gross Incomes (AGI) of $56,000 or less in 2008. Most Alabama taxpayers qualify for free online tax preparation and e-filing through Free File. Taxpayers who are more comfortable with filling out paper tax forms may enjoy using the new online fillable tax forms, which can be e-filed free.

The IRS began the e-file program in 1986 as a pilot project in three cities: Cincinnati, Phoenix and Raleigh-Durham, N.C. That year, there were 25,000 tax returns filed electronically. The e-file program expanded nationwide in 1990 and 4.2 million tax returns were filed. IRS e-file has undergone tremendous growth each year. In 2008, nearly 90 million returns were e-filed nationwide.

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