E-File FAQ

• What is an Authorized IRS e-file Provider?

• What do I gain by using IRS e-file?

• Do I really get my refund faster?

• Is there a fee for IRS e-file?

• If I owe, how do I pay my taxes electronically?

• What Federal individual income taxes can I pay by electronic funds withdrawal?

• How can I pay by electronic funds withdrawal from my checking or savings account?

• What types of Federal individual income taxes can I pay by credit card?

• How can I pay by credit card and which credit cards are accepted?

• Can I pay my balance due by phone or Internet with a credit card if I’m a married filing joint filer?

• What if I owe and cannot pay the full balance due?

• What happens if my return is filed electronically, I am receiving a refund, and I owe taxes from previous years?

• If my return is electronic, how do I sign it?

• What is the Self-select PIN?

• How do I know that the IRS really has my return?

• Is there a paperless method for filing an extension?

• Do I have a greater chance of getting audited by the IRS if I use IRS e-file?
• Can my state tax return be e-filed with my Federal return at the same time?

• Can my state return be e-filed without my Federal return?

 

What is an Authorized IRS e-file Provider?
An Authorized IRS e-file Provider is a tax professional or firm accepted into the IRS electronic filing program. One type of Authorized IRS e-file Provider is an Electronic Return Originator (ERO). An ERO is a person or firm that taxpayers entrust with tax information for the purpose of filing income tax returns electronically to the IRS.

 

 

What do I gain by using IRS e-file?
Accuracy! Security! Electronic Signatures! Proof of Acceptance! Fast Refunds with Direct Deposit! Electronic Payment Options! Federal/State e-file! Only IRS e-file offers these advantages.

 

 

Do I really get my refund faster?
With IRS e-file, you get it back in half the time. It’s even faster and safer if you have your refund
deposited directly to your bank account— in as few as 10 days. Ask your ERO for the estimated date of deposit. For more information about Direct Deposit, go to the Financial Management Service (FMS) web site, www.fms.treas.gov/eft/.

 

 

Is there a fee for IRS e-file?
The IRS does not charge a fee for e-filing. Your ERO will be glad to explain their fees for tax preparation and e-filing. However, these fees are not based on any figures from your tax return.

 

 

You can authorize an electronic funds withdrawal from your checking or savings account at the time
your Tax Year 2002 Form 1040 series individual tax return is electronically prepared. You can also e-pay by credit card.

 

 

What Federal individual income taxes can I pay by electronic funds withdrawal?
Payment can be made for current year (1) Individual Income Tax Returns (1040 series), (2) Form 4868, Application for Automatic Extension of Time to File US Individual Income Tax Return, (3) Form 2350, Application for Extension of Time to File US Individual Income Tax Return, and (4) Tax Year 2003 Form 1040-ES, Estimated Tax for Individuals.

 

Electronic payment eliminates the need to mail a paper Form 1040-V, Payment Voucher, Form 4868, Form 2350 or Form 1040-ES. e-filing your balance due return with an electronic payment is a safe, secure and convenient way to be assured of on-time receipt of both the return and payment. This reduces the chance of errors.

 

 

How can I pay by electronic funds withdrawal from my checking or savings account?
Most tax preparation software allows you to e-file a balance due return and, at the same time, authorize an electronic funds withdrawal from your checking or savings account. The withdrawal cannot be authorized after the return is transmitted. You can schedule a withdrawal for a future date up to and including April 15, 2003. The software includes instructions on the information needed to complete the payment including your bank account number and the routing transit number of your financial institution. Check with your financial institution to be sure that electronic fund transfers can be authorized from your designated bank account (money management accounts, money market accounts, certificate of deposit accounts and some credit union savings accounts do not allow for such transactions). Your tax payment will be listed on your bank statement as a “United States Treasury Tax Payment” as proof of payment. Additionally, you receive an electronic acknowledgment once your electronic return is received and accepted.

 

Note: There are no additional transaction charges for electronic funds withdrawals authorized to pay taxes.

 

Note: Only authorized withdrawals can be made. No other funds can legally be withdrawn.

 

 

What types of Federal individual income taxes can I pay by credit card?
Payment can be made for current year (1) Individual Income Tax Returns (1040 series), (2) Balance Due Notices, (3) Form 4868, Application for Automatic Extension of Time to File US Individual Income Tax Return, (4) Tax Year 2003 Form 1040-ES, Estimated Tax for Individuals, and (5) Installment Agreements for Tax Year 1999 through 2002 taxes. Check with your software provider regarding the availability of a credit card payment option when you e-file.

 

All of the above-named tax types can be paid by phone or Internet through two credit card service providers (Link2Gov Corporation and Official Payments Corporation). The service providers charge a convenience fee for credit card transactions. You are informed of the convenience fee amount before you authorize the payment.

 

Note: The IRS does not receive or store credit card numbers. The private credit card service providers verify the validity of the card and line of credit and forward the appropriate tax payment information to the IRS.

 

 

How can I pay by credit card and which credit cards are accepted?
Credit card payments must be made electronically. You can e-file and e-pay by credit card if the tax software you use includes this option. You may also pay by calling a toll-free service (1-888-PAY-1040SM or 1-800-2PAY-TAXSM) or accessing the Internet (www.PAY1040.com or www.officialpayments.com). All major credit cards (American Express®Card, Discover®Card, MasterCard® card and Visa® card) are accepted. You can make partial payments by phone or Internet, but there is a limit to the maximum number of payments for each type of tax.

 

If you pay by credit card, you delay out-of-pocket expenses and may earn miles, points, rewards or money back from your credit card issuer. You will be provided a confirmation number at the end of the payment transaction and your credit card statement will provide proof of your payment. The payment and return data are reconciled by the IRS based on the social security number entered and the type of tax selected during the transaction.

 

 

Can I pay my balance due by phone or Internet with a credit card if I’m a married filing joint filer?
Yes. Just be sure to enter the Social Security Number of the first taxpayer listed on the return’s preprinted mailing label or postcard.

 

 

What if I owe and cannot pay the full balance due?
The tax preparation software used by your tax professional may allow you to make partial payments. If partial payments are allowed, you can make a payment for less than the balance due amount on your return. If you cannot pay in full by April 15, 2003, you can file Form 9465, Installment Agreement Request. This form is available electronically. An approved Installment Agreement allows you to make a predetermined series of partial payments after April 15, 2003. Regardless of how you pay, you are responsible for paying the amount of tax due by April 15, 2003, or you will be subject to late payment penalties and interest.

 

 

What happens if my return is filed electronically, I am receiving a refund, and I owe taxes from previous years?
The amount owed on back taxes is automatically deducted from your refund just as if you filed a paper return. If you go to a tax preparer to get a Refund Anticipation Loan (RAL), you must tell your tax preparer that you owe back taxes.

 

 

If my return is electronic, how do I sign it?
The most convenient way for you to sign your electronic return is to use a self-selected Personal Identification Number (PIN). It’s completely paperless! If you do not choose to self-select a PIN, you simply sign a signature document, Form 8453, US Individual Income Tax Declaration for an IRS e-file Return. If you are under the age of 16 and filing your first tax return or if your return contains an attachment required to be submitted to IRS, you must use Form 8453.

 

 

What is the Self-select PIN?
The Self-select PIN allows you to personally sign your electronic tax return using a five-digit number. The Self-select PIN serves as your signature and actually takes the place of Form 8453. The process includes self-selecting a five-digit Personal Identification Number (PIN) and entering your Adjusted Gross Income (AGI) from your originally filed tax year 2001income tax return (do not use an amount from an amended return, Form 1040X, or a math error correction notice). The AGI is on Line 33 of Form 1040, Line 19 of Form 1040A, Line 4 of Form 1040EZ or Line I of the TeleFile Tax Record. You should ensure your Date of Birth is accurate and matches the information in Social Security Administration’s (SSA) files prior to e-filing by checking your SSA statement entitled, “Your Social Security Statement.” Since tax preparation software packages may vary, consult your particular package for more details.

 

For more detailed information on qualifications and required taxpayer information on the Self-select PIN or on IRS e-file, please visit the IRS web site at www.irs.gov.

 

 

How do I know that the IRS really has my return?
The IRS notifies your Authorized IRS e-file Provider within 48 hours of transmission that your return information was received. If the IRS detects any errors, it sends a message back to the Authorized IRS e-file Provider indicating the error. The error is corrected and the return is retransmitted to the IRS.

 

 

Is there a paperless method for filing an extension?
Yes. You can use 4868 TeleFile between February 13 and April 15, 2003 to file an extension using the telephone, by dialing 1-888-796-1074. For your convenience, you can authorize an electronic funds withdrawal from your checking or savings account. Payments can be scheduled to be withdrawn up to April 15, 2003. For your records, you will receive a confirmation number at the end of the call. If you are a first time filer you will not be able to use 4868 TeleFile.

 

 

Do I have a greater chance of getting audited by the IRS if I use IRS e-file?
No. The chance of an audit of an e-filed return is no greater than with a paper return.

 

 

Can my state tax return be e-filed with my Federal return at the same time?
There are 37 States and the District of Columbia participating in the IRS e-file program. To see if your state participates, please visit www.irs.gov or ask your ERO for additional information.

 

 

Can my state return be e-filed without my Federal return?
Yes, beginning January 2003, you will be able to e-file your state return without the standard Form1040 attached. You may visit the IRS web site at www.irs.gov for the names of states participating in State Only filing.