Tax season is a busy period for everyone as it requires a lot of work and especially for those people who haven’t taken care of their books for the whole year. If a person or a business is able to maintain his books properly for the whole year through advanced accounting and tax solution like cloud accounting solution then he will have much lesser difficulty in filing taxes in comparison to those who become active for the tax only during the tax season.
Those days are long gone when everyone used to gather and collect different kinds of paper in order to file their taxes as everything has now become digitalized and filing taxes is no exception to this. The modern era of digitization has reduced the paperwork which is has resulted in better accuracy, reduced workload, and much faster process. And such digitization has given birth to one of the most effective and efficient processes of filing taxes in the form of e-filing.
E-filing is simply the filing of taxes digitally with minimum paperwork. Even the IRS motivates people to file e-taxes rather than the traditional paper filing of the taxes and the efforts to popularize the e-filing has worked great as according to the data of 2018 tax season, most of the people filed their taxes digitally. In the year 2018, the IRS expected that almost 90% of the people will file taxes electronically and it was able to get very close to this number as over 53,929,000 million people filed their taxes electronically in 2018.
What are the benefits of e-filing your taxes?
Filing taxes involves a lot of numbers and complex calculations. It doesn’t matter how expert your tax professional is, if he is using the old and traditional method of filling taxes then chances of error are increases as tax filing process is very complex on the papers. But when you go for the easy and quick e-filing process through various accounting and tax software then most of the workload becomes manual and you get your papers ready for filing taxes by simply entering the normal data. The accounting and tax software have built-in validations as well and that’s why you get 100% accuracy with e-filing. So, if you want to avoid any lawsuit because of incorrect data entry which results in false tax filing, you should always go for the e-filing process.
The deadline is one of the most important aspects of filing taxes as many people are not able to file the taxes on or before the deadline and that’s why they have to pay the penalty because of not being able to meet the deadline. In the year 2018, nearly 750,000 people missed the deadline of filing taxes and they all were left with the only option of filing for an extension or pay the penalty. But if you are going to use the e-filing tax process then your chances of filing taxes on time will increase as your speed of preparing your tax return will increase. It has been seen in most of the cases that all those people who filed their taxes through e-filing were able to prepare their tax documents much faster inc comparison to physical papers.
The paperwork in the filing of taxes has lots of issues regarding the security and that’s why you should always use e-filing for your taxes. If you are going to use the paper system for filing your taxes then your sensitive tax documents can easily fall in the wrong hands while being piled up in your CPAs office. But that is not the case in e-filing as the whole process is carried out on the digital platform and if you are using advance solution like cloud accounting then you get the highest level of security while filing taxes as the cloud world is the safest place for storing your financial data and the most secure way of preparing your taxes.
Easy access to previous records
Filling taxes means going through your past data which can be a cumbersome process if you are using the old and traditional method of filing taxes. You will have to go through huge piles of papers and there are maximum chances that you will not be able to find your previous records on time as paperwork makes the tax filing process complex and managing those documents in such order that you find it on time is almost near to impossible. But if you have filed your previous year’s tax electronically then you will be easily able to find your past data and get your work done quickly in comparison to old and traditional method of filing taxes.
Easy to understand
If you are new to the tax world then filing the taxes can turn out to be a nightmare for you as there are various terms and deductions which are quite difficult to understand for a noob especially in the case of traditional method of filing taxes. But in the case of filing taxes electronically you will not have to go through such difficulty as understanding the e-filing form of taxes is very easy and you can even file taxes on your own with a little bit of basic knowledge about tax laws and deductions.
If you are planning to file your taxes accurately and quickly then the best way to do it is through e-filing. If you have any doubts regarding the e-filing of taxes then you can visit the official website of IRS and know more details.