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Mar. 12--MCALLEN -- In 1986, about 25,000 taxpayers in three U.S. cities filed their returns electronically.
When the Internal Revenue Service promoted e-filing nationwide in 1990, 4.1 million taxpayers used it.
By 2004, about 62 million filed their taxes electronically.
Now with only 34 days remaining until the April 15, 2005 deadline, the IRS expects more electronic filings through the Internet or telephone.
"The biggest (advantage) by far is the ease of use, accuracy and speed," said IRS spokesman Kenneth Vargas. "For people who fill out a form 1040 last year -- the long form -- 63 percent had it computer prepared. The 1040 is considered the most complicated because of the deductions. A lot of people are realizing rather than do this by hand and transpose numbers back and forth, (filing electronically) is just a lot easier to use." Besides the convenience, Vargas said e-filing leaves less room for error, as compared to the pen and paper method. There is only a 1 percent error rate for e-filing, while it is 18 percent for paper filings. Free on-line filing services are available at www.irs.gov.
He said e-filing also eliminates about two weeks from the tax process.
"(E-filings) cut out a huge part of manual labor," he said. "We run a validity check, give you an acknowledgement within hours. If it's fine, we got everything, here's your confirmation number." Usually within hours, or minutes if filed over the telephone, the taxpayer receives a confirmation number that the information checked out. If applicable, the tax preparer will receive the confirmation number.
If a person mails a return, the IRS cannot confirm the information is accurate, Vargas said. The agency can only confirm if the return was received or not. With electronic filing, the computer automatically verifies social security numbers, math and deductions.
"It's going to get processed and we're going to get you your refund," he said.
In past years, certified public accounts at Carrales and Company LLP in McAllen have switched to electronic filing. CPA David Carrales said after a client reviews the filing, he submits it electronically to the IRS.
"That way the client doesn't have to worry about mailing it," Carrales said. "They process it much quicker." With 14 years experience as a CPA, Carrales said he remembers filling out clients' tax returns by hand and then mailing it out in time for the April 15 deadline, which is only 34 days away.
"It's making it easier," Carrales said of e-filing. "There was one point we were doing stuff by hand."
FOR MORE INFORMATION: Visit www.irs.gov or call 1-800-829-1040.
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