Nebraska is already a national leader in the electronic filing of tax returns and still more people will be e-filing next year.
Starting January 1st, tax preparers who work on at least 11 returns will have to file all of them electronically. IRS spokeswoman Carrie Resch says the move is expected to make it easier to spot errors and will save the agency a lot of money.
“The cost-savings for electronic filing is pretty significant for the IRS,” Resch says. “It’s about 17-cents for us to process an electronically-filed return versus about $3.66 for a paper-filed return.”
The requirement was already in place earlier this year for large tax preparation firms that filed more than 200 returns. Resch says those tax preparers are being reminded they will need a special ID number before the end of this year.
Resch says, “We’re just a few months out from the next tax filing season so we’re reminding tax professionals and tax firms that do not have an electronic filing ID number to start the process to get one of those so they can meet new e-filing requirements we’ll have going into play in 2012.”
She says tax preparers can register online. “Tax professionals can just go to our website, www.IRS.gov,” Resch says. “Click on ‘Become an Authorized E-file Provider,’ and it takes just a few minutes and you can get any additional guidance you need there.”
Nearly 80% of individual tax returns were filed electronically this year. Resch says e-filing makes it faster for taxpayers to receive their refund and also reduces mistakes.
With direct deposit, she says you usually receive your refund in less than ten days, while it may take four-to-six weeks if you file a paper return.