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Chris Merchant
Christopher W Merchant is a C.P.A. with over 30 years experience in all aspects of tax preparation, accounting and business valuations. Chris is a member of The American Institute of Certified Public Accountants and the National Association of Certified Valuation Analysts. In addition to his private practice, he opened Liberty Tax Service with his sister Kelly Carpenter in January 2001. Liberty Tax Service is located in Towne West Square and offers high quality tax returns as well as refund anticipation loans in which clients can receive their refunds in 24 to 48 hours. For more information, you may contact Liberty Tax Service by phone at (316) 219-4829 or Chris at (316) 744-9181. Chris graduated from Wichita State University in 1970 and lives in Wichita with his wife Debra and children Andrew and Jamie.
Taxes & Accounting
2002-01-01 12:24:00
E-filing
Answer:  To answer your questions, we first need to look at the history of electronic filing and what it is.  Electronic filing was developed by the IRS in the 1980's as a way to automate the processing of individual income tax returns. Over the years, the IRS e-file program has grown in both size and functionality, making e-file the fastest most accurate way to file your return.  Electronic tax filing is the process of translating a completed tax return into a computer-readable format for automatic processing. In performing this translation the return is cross-checked for accuracy. After the return is completed it is securely transmitted to the IRS filing center where the IRS processes the return, usually within 48 hours, and provides a response back to the transmitter whether the return was accepted or rejected.  If the return is rejected, the IRS will give the reason the return could not be accepted. The preparer will then correct the error and resubmit the return to the IRS for processing.It is estimated for the tax year 2001,  over 40 million people will use IRS e-file for faster refunds and accurate, secure filing. Taxpayers filing a Balance Due return will also benefit from e-filing and  e-paying in a single step by direct debit (automatic withdrawal) or credit card.Speed of the refund is the primary reason most taxpayers e-file their returns. Taxpayers can expect to receive their refund via direct deposit in only 10-14 days, compared to 8-12 weeks for mailed returns. Even taxpayers who request to have their refund check mailed receive their checks faster by mail.  A second reason people e-file is that it eliminates any problems with mail hold-ups, like what happened to mail delivery during the heights of the recent anthrax scare.  More accurate filing reduces the chances that a return will be selected for audit since 99.5% of all e-filed returns are filed accurately, compared to 82% of all mailed returns.  The 18% error rate for mailed returns is due primarily to manual data entry errors by either tax prepares or IRS employees. Acknowledgement that your return was received assures the taxpayer that the IRS receives the return.  Mailed returns receive no acknowledgement at all. The Kansas Department of Revenue has joined with the IRS to provide for the electronic filing of Kansas tax returns. The Federal/State e-file program provides a "one-stop-shop" for tax preparation and filing. It allows taxpayers to file their federal and state returns through their tax preparer in one electronic transmission.Electronic tax preparation and filing is not for every taxpayer. If a single form has to be done in pencil, then the entire return has to be submitted by mail. So be sure to check that your return does not include any forms that would preclude it from being filed electronically.
 
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