What We Do at Advanced Tax








The Internal Revenue Service is faced each year with the formidable task of processing millions of income tax returns.  The paperwork alone is enough to sink a large sized Navy battleship!  This process begins when the mailed in return is received by the Service Center.  News clips have shown dump trucks actually backing into warehouses and dumping loads of mail which contain income tax returns on the floor where they are gathered.  Once the envelopes are opened, they are sent to "tingle" tables for the first step.  Some sorting and coding take place, and then a person must be able to read the information, as it was handwritten on the forms, and key in this information into the IRS computer system.  Without the taxpayer there to answer questions or verify the information, the person inputting the information must do the best they can in getting it right.  Unfortunately, it is often impossible to do so.  I receive tax returns in my office that resemble the handwriting of a first grader, at best, but at least the person is there to answer questions in order to get it right.  I can only imagine what is received on a national scope.  In order to aid in the processing of income tax information, the IRS began to promote the idea of electronic filing.  The way the system was put in place originally utilized income tax preparers and computers linked to the IRS computer system.  In order to participate in the program, interested preparers were asked to apply to the IRS to receive an Electronic Filer Identification Number (EFIN).  Each applicant undergoes a suitability check annually, and if accepted, will be allowed to participate in the program as an Electronic Return Originator (ERO) whose responsibility is to convert the information on the tax return to electronic format by means of software.  Once done, the information is transmitted, either directly or indirectly, to the IRS system for further processing.  This process will result in the issuance of a refund, if one is due, in as little as 8 days, as compared to 6-8 weeks if the return is mailed to the center. Electronic Filing or Efile has now grown to include tax returns filed by telephone (TeleFile), individuals using home computers, and individuals using online (internet) filing sites. Advanced Tax offers Efile through our office, and online filing on our web site.  The IRS web site makes the following claim:

The IRS e-file program enables taxpayers to file their individual income tax returns electronically. More and more taxpayers are choosing IRS e-file because their returns are processed faster with fewer errors. This means quicker refunds and less contact with the IRS. Plus, the IRS acknowledges receipt of IRS e-filed returns which gives taxpayers proof of filing. The electronic payment options let you and your clients file early and either electronically schedule a payment for a future date (paying by direct debit) or delay out of pocket expenses (paying by credit card). As taxpayer demand for IRS e-file grows, there are many ways you can meet the expectations of your clients and participate in this important trend as an Authorized IRS e-file Provider.