In the digital world, there's nothing to wonder about the change in the electronic filing of tax forms from manual filing. Businesses choose the e-file method to file tax forms because it is a time-saving solution for employers. Nowadays, every business switches to e-filing instead of manual filing. Moreover, the IRS also recommends filing taxes electronically.
Let’s compare e-filing and paper filing and choose the best option to file your taxes.
Advantages of E-filing vs. Paper Filing
1. Accuracy and error-free
Problem:
On filing taxes through paper, some common mistakes can occur unknowingly. As the tax forms are complicated the information provided must be accurate.
Solution:
On filing electronically, all the forms are validated through the internal audit check where the IRS business rules and schemas of the errors will be listed until you fix them instantly. This helps you to make an error-free tax filing.
2. Secure and safe Filing
Problem:
Even though paper filing is more secure than e-filing. An equal amount of security is achieved when filing electronically.
Solution:
Unauthorized access is prevented by using multifactor authentication, The confidential data is maintained secure with a multilayer approach. So, you can process the e-filed tax returns safely and securely.
3. Faster processing of tax forms
Problem:
If you file them through paper filing, processing the tax forms may take several days or weeks.
Solution:
The IRS processes the electronically filed returns within a few hours. In order to process your forms quickly, file them electronically.
4. Know the Status of Your Filing
Problem:
The status of the tax forms cannot be tracked easily when you file through a manual method.
Solution:
If you e-file the tax forms, you can easily track your form’s status and know whether it is processed.
5. Reduced Mailing Costs
Problem:
Mailing costs get increased when you file it manually because you have to download print and send it to the IRS.
Solution:
E-filing eliminates the need for postage and paper, saving money on mailing costs.
6. Affordability
Problem:
If you file it manually, the paper filing cost is high compared to e-filing.
Solution:
Efiling tax forms can be affordable because you can pay for the particular forms that are filed.
7. Easy e-file process
Problem:
Additionally, you must submit the taxes to the respective tax office physically which consumes a huge time to process it.
Solution:
E-filing can be done by simple steps. So that you can save valuable time spent on mailing and printing the tax forms manually.
8. Reduces strain of document management
Problem:
Managing all the tax forms filed manually can be difficult. In case of any discrepancy finding out the required document is really hard.
Solution:
If you e-file your taxes, Your records will be maintained in your account for up to 7 years. You can log on and download it whenever necessary.
Which type of filing is recommended by the IRS?
The IRS(Internal Revenue Service) suggests that electronically filing the tax forms is the best way to file your tax returns. Because, e-filing is the easiest, secure, and fastest way to file the return. If you owe taxes, you can schedule an automatic payment from your bank account. If you e-file and choose direct deposit, Your refund will be processed faster. However, the IRS always suggests electronic filing of forms.
Visit https://www.irs.gov/pub/irs-utl/OC-Severalgreatreasonstoefileyourfederaltaxreturn.pdf to know why IRS recommends Efiling of your tax returns.
Why TaxBandits Could Be the Best Choice?
TaxBandits supports e-filing with its enhanced features and helps to avoid tax penalties. It provides an easy and secure filing of tax forms to the IRS. Error-free filing can be achieved and also supports all the necessary features to file your tax forms more securely with TaxBandits. So, E-filing could be the better option for filing your tax returns.
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