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Electronic filing is available for most individual returns, and using electronic filing can have several advantages for individual taxpayers. The main advantages of electronic filing of individual tax returns are:
 Better accuracy than is available with paper returns;
IRS acknowledgment of receipt of the return; and
Quicker refunds.
Returns filed electronically are more accurate because senders are alerted within a day or two if errors exist; then they can correct the errors and re-transmit the return.
IRS also acknowledges that an electronically filed return has been accepted. IRS creates an acknowledgment file for each electronic return, which it can transmit back to the return's sender within two working days after the original transmission. This acknowledgement provides some protection should IRS later claim that it never received a return.
Two methods are available for electronic filing.
Method 1. You must have a computer, tax preparation software, and a modem. You prepare your return on your computer and then transmit it to us for processing and filing with the IRS.
Method 2. We prepare your return and file it with the IRS; no special software or equipment is needed.
Taxpayers who file individual returns electronically can apply their refunds to estimated tax, receive them by check, have them deposited directly into an individual or joint account, or use some combination of these options.
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Under the electronic filing program, taxpayers also can borrow money based on an anticipated tax refund using a “refund anticipation loan” (RAL). The RAL is a contract between the taxpayer and a lender; IRS is not involved.
Electronic filing is the quickest way to get refunds. A taxpayer using it receives a refund in half the time it takes with a paper return — even faster if Direct Deposit is chosen. IRS doesn't guarantee a specific date by which a refund will be directly deposited into a taxpayer's account.
However, you can get the status of a refund while an electronically filed return is being processed: simply go to the IRS Web site, www.irs.gov, and look under “Check on Your Refund.” Or, just click here. To use this service, you need your social security number, filing status (e.g. single, joint), and the exact amount of the refund as it is shown on your return. The service also can be used to track missing refunds.
Balance due returns also are accepted for electronic filing at all IRS service centers that accept electronically filed returns. The balance due return is transmitted in the same manner as a refund return. To pay the balance due on the tax return, you can mail a check separately, authorize a direct debit out of a checking or savings account, or charge the balance due to a MasterCard, VISA Card, Discover Card, or American Express Card by calling a special phone number or using the Internet.
The fee for electronic filing is not based on the amount of your refund. IRS rules prohibit basing a fee for electronic filing of an individual return on the refund amount or on any other amount from the return.
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