How should I file my IRS tax return... using 123 IRS.com™ efile or IRS TeleFile?

Although mailing IRS tax returns remains the most popular tax return filing method, IRS efile has, during the past few tax years, become increasingly more popular. Last year 43 million IRS tax returns were filed using IRS efile. The IRS has stated that by tax year 2002 they will require 60% of all tax returns to be filed using IRS efile.

IRS efile

IRS efile is faster, safer, and more accurate than mailing your tax return to the IRS because with IRS efile your tax return is transmitted over telephone lines or the Internet through 123 IRS.com™ directly to an IRS computer.

Some of the benefits of IRS efile with 123 IRS.com™ are:

  • No mail loss - IRS verifies receipt of your 123 IRS.com™ efile tax return;
  • Less processing time - IRS efile tax returns are processed immediately by 123 IRS.com™ and the IRS;
  • IRS efile uses less paper - help save the ecology;
  • IRS efile tax returns are more accurate because they're computer calculated and efiled with the IRS by 123 IRS.com™;
  • Faster IRS tax refunds - about 8 days.   

IRS efile with 123 IRS.com™ is the best way to file your tax return. 
To efile your IRS tax return right from this 123 IRS.com™ web site click

IRS TeleFile

IRS TeleFile is an interactive IRS computer program that calculates your tax and begins the efiling process over the phone. The IRS automatically sends a special IRS TeleFile package to those who may be eligible to use it. Only those receiving the IRS package can use IRS TeleFile. This tax year, many taxpayers who filed IRS tax form 1040EZ by IRS TeleFile last tax year will receive a special IRS TeleFile tax package that allows them to efile their IRS tax return. IRS TeleFile is easy, fast, and free. It's available 24 hours a day, with nothing to mail in to the IRS.

The service is only available if you file IRS tax form 1040EZ, get the IRS TeleFile tax booklet (TEL-1) from the IRS in the mail, and meet the following IRS qualifications:

  • you still live at the same address printed on your IRS TeleFile tax record;
  • you file your IRS tax return as single or married filing jointly;
  • you are under 65 years of age on January 1, 2001;
  • you had taxable income only from wages, salaries, tips, taxable scholarship or fellowship grants; unemployment compensation; interest (less than $400 and no withholding tax deduction); Alaska Permanent Fund Dividends (no withholding tax deduction);
  • have use of a Touch-Tone telephone. (For best results, don't use cordless or cellular phones or phones with a key pad in the receiver.)

You cannot use IRS TeleFile to efile your  tax return if you:

  • need to change your IRS tax return filing status, name, or address;
  • need to claim any dependents;
  • need to claim a tax deduction(s) on your IRS tax return for being over 65 or blind;
  • did not receive the IRS TEL-1 tax booklet from the IRS;
  • are filing the IRS tax return of a deceased taxpayer;
  • received any advance earned income tax credit payments;
  • repaid any unemployment compensation in 2000.

If you are eligible to use IRS TeleFile,  you should complete the information provided in the IRS TeleFile tax booklet and then call the toll-free telephone number in the IRS TeleFile tax booklet. The interactive computer program will instruct you on how to use the touch-tone telephone to efile required tax information.

Note: Even if you use IRS TeleFile, you will be required to mail any tax that is owed to the IRS by April 15th.

 

For further information regarding IRS rules and regulations and your particular tax situation you should consult with
a Certified Public Accountant, Enrolled Agent, Attorney, or other tax advisor. Please review our
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