|
|
This is the second in a series of stories about the tax season. The series will run every other Thursday until the mid-April tax deadline. In two weeks, part three will include tips for hiring a tax preparer, doing it yourself or finding tax preparation assistance.
Electronic tax filing is increasingly popular, delivering refunds in about
a third the time that traditional methods do.
"More and more people are going to online filing because it's more convenient," explained IRS spokeswoman Gloria Wejciechowski. "It's faster, it's easier and it's more accurate."
The speediest way to get that refund is to file electronically, then get the money deposited directly into an account. Money can be in a taxpayer's hands as quickly as two weeks after filing.
Filing electronically but having the check mailed takes approximately three weeks, according to Wejciechowski. Traditional methods take around six weeks.
For simple returns, it can be done directly on the IRS Web site, irs.gov. More complicated returns may require software.
Much of the online tax-filing frenzy is happening locally at the Intuit office in Hartwood. Intuit produces popular tax software like Quicken and TurboTax.
At the Hartwood office, customer service representatives handle calls from tax preparers with questions. Other workers handle sales of support products for the tax software.
Employees have extended hours during the intense tax season.
"It gets really busy," said senior manager Donna Harring. "Call volume increases. There's a short window of time when people are preparing returns and there's a sense of urgency about getting a response."
The IRS is pushing for online filing. Not only is it easier on the taxpayer, it increases efficiency for the government, too.
"The overriding goal from Congress to the IRS is to have 80 percent of returns e-filed by 2007," noted Chuck McCabe, president of People's Income Tax and a member of a federal e-file tax committee.
"E-filing" includes any tax returns filed on the Web, via tax software or through the IRS tele-file phone system.
McCabe started using electronic filing in 1987, the first year it was available in Richmond where he is based. He also has a People's Income Tax office in Fredericksburg.
"We were actually pioneers," he said. "We were early adapters."
McCabe said e-filing isn't just for people eager to get refunds. Even people who owe money benefit, because they get a confirmation that their taxes were filed. E-filing doesn't mean paying taxes that quickly because filers still have until April 15 to get the money to the IRS.
To this day, he still persuades taxpayers and tax preparers to make the switch.
"It's so much better in so many ways," he said. "There are many strong reasons to e-file and the only argument not to would be the cost."
Even so, Wejciechowski said taxpayers can find links to free online filing services for those with a lower income, usually less than $25,000 adjusted gross income, at irs.gov. Intuit offers free services for the low-income filers, and details can be found at intuit.com.
Taxpayers who are concerned about transmitting personal details online need not be, according to Lisa Smith, an Arlington product manager for the McAfee virus software company. Most sites that handle these transactions, such as the IRS, are very secure.
"It would be very difficult for that kind of threat to happen," she said.
But what filers should worry about is information resting in their computer's hard drive, which could be vulnerable to hackers or viruses. McAfee sells anti-virus software, which scans for such threats, and firewall software, which shield computers from intruders. The company is offering rebates for people who buy both their software and TurboTax or Block Financial Tax.
One virus last year, for instance, sent files from computers to everyone in a victim's e-mail address list.
People who have high-speed cable modem or digital subscriber line Internet service should be especially concerned, Smith said. That's because those people are connected to the Internet at all times--which makes it easier for hackers. They should be sure they are protected.
"There is a lot more personal information being stored on your computer in general," Smith said.
McCabe said his company serves over 6,000 taxpayers, and last year about 80 percent allowed People's to e-file. He's hoping to bring that up to 90 percent this year.
"There are some taxpayers who just won't do it," he said. "They've been putting their tax return in the mailbox all their lives and that's the way they've always done it."
It's not just taxpayers who resist. Some preparers also avoid change, McCabe said.
But he believes preparers will be forced to give in soon enough, as their clients abandon them for offices where e-filing is offered.
After all, McCabe said, it's more accurate, more secure, more convenient, faster and just plain better than the old-fashioned method.