Frequently Asked Questions:
Q: What is Electronic Filing?
A : Electronic Filing (eFile) is the most popular method of filing taxes, developed by the IRS nearly four decades ago in 1986. Over One Hundred Million personal income taxes are filed each year.
Electronic Filing involves formatting the data of a tax return return into an electronic form and then transmitting that data to the IRS and certain states via secure encrypted Internet connection such as SSL individually or in batches.
An additional new method, utilizing the Internet for the transmission medium to the service centers in real time, was developed and FileYourTaxes.com was the first company, successfully employing this method of eFiling taxpayer returns with the California Franchise Tax Board and the California Board of Equalization. Starting during the 2011 Tax Filing season, IRS adopted Modernized eFile (MeF) as the filing mode of choice for the personal income tax eFilings and FileYourTaxes.com currently uses this filing method.
Certain advantages to eFiling:
Increased efficiency in processing. Prior to transmission, the return information is subjected to stringent error checks. Once transmitted, the Service Center performs a more extensive error check, resulting in a filed return with significantly low error rates.
Because of increased efficiency, coupled with the new IRS customer account infrastructure (CADE 2) the time it takes to issue your refund is reduced. If you are able to receive your refund electronically, you may receive your refund sooner than you thought.
If you owe the government money, you will be pleased with the convenience of our
I-PAYbyCreditCard payment option to pay off the Balance-Due amount. In all cases, payment a paper voucher will be available to print and mail to the Government. Tax payments need to be made on or before the due date of the return, normally April 15th, even when you eFile. Direct Debit (Electronic Funds Withdrawal or ACH Debit) is another payment option also available through our system. FileYourTaxes.com was a proud participant in the IRS pilot of this program under the name "ACH Debit Pilot Program" during the 1998 tax year filing and the Direct Deposit pilot even prior to that period.
Electronically filed returns are acknowledged by the IRS and if accepted, the returns will be identifiable with a Submission ID. Additionally, FileYourTaxes.com provides an electronic postmark (ePostmark) for all the returns filed. This postmark will have the same effect and validity to the IRS as the postmark affixed at the post office, and as an added advantage, will be correlated with the eFiled return. Such a definitive relationship may not be obtained through the regular post office postmark, even if a method of mailing certification is employed.
Due to its efficiency and desirability, it is understood that the IRS deemed the cost of eFiling a "de miminis fringe benefit." Thus, if employers wish to provide this benefit to their employees - where the cost would be a deductible employee benefit expense for the employer - the benefit would not be a taxable income to the employees. Employers may provide this benefit as a holiday gift to their employees.
Return to the Common Questions and Answers (FAQ) page.