Who does anything by paper these days? With most important transactions taking place via digital devices, filing your taxes has become no different. Here’s what you need to know to get an “A” in e-filing.
File if you owe money
If you owe, or think you may owe, money to the government in any given year, e-filing offers some serious advantages. One of them is that you have the option of paying by check, credit card or direct debit card. Another is that if you require an extension, e-filing is a quick and easy way to request it. Specifically, if you file Form 4868, you may be able to avoid the pricey penalty for filing late.
Undeniable proof
It can be hard to prove to the IRS that you actually filed your taxes when you say you did – at least, if you use the paper method. You would probably need some sort of mailing confirmation, like certified mail, which is an extra cost at your local post office. But with e-filing, you get a confirmation number confirming that you sent in the right forms, which may prevent interest, penalties and fees from accruing if the IRS claims they never received your return.
Want to know more about e-filing your tax returns? Talk to your local accounting firm today!
