NC-2008-03, January 23, 2008 SC-2008-03

NC-2008-07, January 28, 2008
SC-2008-04

GREENSBORO –

The fastest way for taxpayers to receive a tax refund is to use IRS e-file and choose direct deposit.  Taxpayers can receive their refunds in as little as ten days with IRS e-file and direct deposit.  Around the Carolinas, about 77 percent of filers are expected to receive refunds this year.

With e-file there is no paper return going to the IRS and with direct deposit, there is no paper refund going to the taxpayer. It’s all electronic. Tax return information is protected through encryption. Taxpayers receive an acknowledgement within 48 hours that the IRS has accepted the return. Once the e-filed tax return is received and acknowledged by the IRS, processing the refund begins.

“IRS e-file is the fastest, easiest and most accurate way to file a tax return,” said IRS spokesperson Mark Hanson. "We strongly encourage taxpayers to take advantage of the benefits that electronic filing offers taxpayers including faster refunds.”

“Our best advice for taxpayers who owe: e-file now; pay later. You can electronically file your return now and schedule a payment via an electronic funds withdrawal from a bank account on April 15,” according to Hanson.

In North Carolina, more than 2.34 million, nearly 60%, of the more than 3.9 million filers chose IRS e-file in 2007.  In South Carolina, more than 1.28 million, nearly 67%, of the more than 1.9 million filers chose IRS e-file in 2007.

“More and more Carolinians are hitting the ‘send button’ on the computer when it comes to filing their federal tax returns,” said Hanson. “Taxpayers and tax professionals alike are discovering and taking advantage of the benefits of e-filing.”

Nationwide and in the Carolinas, the IRS expects a record number of taxpayers who will file through a computer and take advantage of these benefits:

·          Faster refunds: Direct Deposit into a bank account can speed refunds to e-filers in as little as ten days.

·          More accurate returns: IRS computers quickly and automatically check for errors or other missing information, making e-filed returns more accurate and reducing the chance of getting an error letter from the IRS.  It eliminates most common errors, such as math errors.  The error rate with paper returns is about 20 percent compared to about 1 percent with e-filed returns.  An error on a tax return can delay the issuance of a tax refund.

·          Quick receipt acknowledgement: Computer e-filers receive an acknowledgment that the IRS has received their returns.

·          Delete the paperwork through electronic signatures: Taxpayers can create their own Personal Identification Number (PIN) and file a completely paperless return using their tax preparation software or tax professional. There is nothing to mail to the IRS.

·          Easy payment options: E-filers with a balance due can schedule a safe and convenient electronic funds withdrawal from their bank account, or pay with a credit card.  If you file now you can pay on April 15 by designating an electronic funds withdrawal from a bank account.

·          Safe & Secure: Since 1986 over 600 million tax returns have been e-filed nationwide without a breach of security or integrity of these e-filed returns.

Taxpayers may use IRS e-file through their tax preparer, over-the-counter software or Internet programs as well as the Free File program at IRS.gov.  The Free file program can be used by taxpayers with an Adjusted Gross Income (AGI) of $54,000 or less.  More than 70 percent of taxpayers can file for free and online using the Free File program.   The IRS.gov Web site provides information on the benefits and available options related to e-filing.

“Whether you are a novice or experienced in taxes, the IRS encourages all taxpayers to check out the IRS.gov Web site for the latest tax tips and information. The IRS also encourages taxpayers and tax professionals alike to get on line with the e-file program,” said Semanick.

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