Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Electronic Filing

What it is:

Electronic filing, or e-File, is the online tax return filing system developed by the Internal Revenue Service (IRS)

How it works (Example):

Individual taxpayers, businesses, large and mid-sized corporations, and non-profits can file their required tax returns, including quarterly filings, directly online with the IRS through its automated e-File system.

The e-File system allows taxpayers to make payments from a credit or debit card, or through the U.S. Treasury's Electronic Federal Tax Payment System (EFTPS).

Why it Matters:

Electronic filing allows for faster tax return filing, review, payment processing and refunds. Overall, the e-File system is a lower-cost alternative compared with paper form mailings, processing, and check mailings, saving money and time for both the IRS and the taxpayer.