Audio: Conversation with Director, IRS e-File Program  

WASHINGTON — Most taxpayers may file their 2007 tax returns electronically beginning Jan. 11 as the Internal Revenue Service opens the e-file program.

Benefits of E-File

Taxpayers who use IRS e-file and who choose direct deposit can receive their refund in as little as ten days. 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.

“IRS e-file is the fastest, easiest and most accurate way to file a tax return,” said IRS Acting Commissioner Linda E. Stiff. "We strongly encourage taxpayers to take advantage of the benefits that electronic filing offers."

IRS e-file allows taxpayers to file their return now and pay later if they owe taxes. It allows taxpayers to file both the federal and most state returns at the same time.
Taxpayers may use IRS e-file through their tax preparer, or with a computer using tax preparation software. This software is available on the Internet for online use or for download. Many retail stores sell the software for offline use. The IRS does not charge taxpayers to e-file their completed returns, but some tax preparers and software manufactures may charge a fee.

To get all the benefits of e-file, taxpayers must make sure that when they are done with their return, they take the final step of e-filing it. Taxpayers who use a paid preparer should make sure their preparer is taking this final step, too. Why? In addition to error checks inherent in the return-preparation software, additional checks are done during the transmission process. That's why the error rate is so low for e-filed returns. In fact, the error rate is significantly reduced from 20 percent with paper returns to about 1 percent with e-filed returns.

Taxpayers Affected by AMT Legislation

As many as 13.5 million taxpayers who use five forms related to the Alternative Minimum Tax legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law. IRS has targeted Feb. 11 as the potential starting date for taxpayers to begin submitting the five-related returns affected by the legislation.

Returns that include the following forms should not be filed until Feb. 11, 2008:

The February date allows the IRS enough time to update and test its systems to accommodate the changes without major disruptions to other operations related to the tax season. See IRS News Release 2007-209 and these questions and answers for more information.

If returns with these forms are e-filed before Feb. 11, they will not be accepted.