When it comes to the annual fiscal ritual known as tax filing, taxpayers can either go the solo route or choose to be accompanied by an experienced Internal Revenue Service (IRS) tax return preparer. Reliance on the expertise of reputable tax professionals yields numerous benefits: 1) an accurate tax return, 2) convenience, 3) a speedy and simplified tax preparation, 4) time and money-saving tax debt help, 5) a thorough understanding of tax rates and IRS regulations and procedures, and 6) maximum utilization of the IRS tax deduction. The method by which income is reported for taxation purposes can have important consequences on an applicant's tax liability and on his or her financial capacity to achieve long-term goals. Therefore, taxpayers should not hesitate to explore the various tax preparation options available to them. What follows is an overview of some of the numerous tax services at taxpayers' disposal:
1. IRS e-filing
In 2006, 73 million Americans electronically filed their tax returns. The IRS provides electronic tax return filing options to self-employed taxpayers and businesses (large or small), individual taxpayers, mid-size and large corporations, non-profits and charities. Created through a collaboration between the Free File Alliance LLC, consisting of tax software companies from the private sector, and the IRS, the Free File program offers gratuitous federal tax preparation and e-filing for qualifying taxpayers. To be eligible this year for a free filing of their federal tax return, taxpayers must have an adjusted gross income (AGI) that does not exceed $52,000. For step-by-step directions on this tax service, consumers may visit the IRS' website at www.irs.gov. Businesses can avail themselves of the IRS' e-file for information returns, corporations, partnerships, exempt organizations, trusts and estates, or employment tax returns.
The process of filing taxes online enables taxpayers to complete their taxes in a quicker, more efficacious and accurate manner. The IRS carries a list of businesses that extend e-filing services, such as Perquest and Paycycle, as well as companies that furnish customers with an IRS form on which they can enter data (i.e. TaxExact, Drake Software, and Taxsoftware.com).
2. Tax Exact Online
For economical, accurate, and user-friendly online tax preparation for state and federal income taxes, consumers could also consult Tax Exact Online at www.taxexact.com. Taxpayers will find the provider's online tax services to be straightforward and easy to understand and follow. Tax Exact offers a host of services, which include the following:
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Income tax e-filing at no additional cost (and free state e-filing)
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Online evaluation of taxes
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Option to select a tax advisor from an online directory for purposes of obtaining a professional review of tax returns
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Expeditious tax refund
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Free 24/7 chat support
3. Turbo Tax
Taxpayers may choose to prepare and file their taxes online through Turbo Tax (http://turbotax.intuit.com), which the New York Times recently ranked #1 for responsiveness to customers' questions and deductions maximization. Turbo Tax extends a myriad of tax services to taxpayers seeking assistance in filing their taxes:
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Stores applicant's tax return online
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Provides free eFile
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Offers a variety of online tax products (i.e., Basic, Deluxe Deduction Maximizer, Home & Business Schedule C), all of which include free e-filing
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Simplifies tax preparation and filing process
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Allows taxpayers to verify their e-file status
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Has more than 250 tax experts to assist with tax solutions
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Protects customers' data via advanced security measures
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Conducts a short interview that spots errors, audit flags and overlooked deductions
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Searches tax return for 350+ potential deductions
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Alerts applicants, through its Deduction Maximizer Center, to extra deductions they might be eligible for
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Guarantees a maximum tax refund and the smallest tax applicable or your money back
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Guides taxpayers through charitable contributions and deductions for education, family, home and medical expenses
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Enables taxpayers to receive IRS confirmation within 2 days and their refund in as little as 9 days.
4. IRS-authorized e-file tax providers
These providers prepare all types of tax returns online- state and federal- and electronically file them to the IRS. Customers may avail themselves of a number of different services and benefits:
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An extension of time for filing their federal tax return
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A faster tax refund
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Guaranteed security of their electronic tax filing through use of a Secure Sockets Layer (SSL) technology and 128-bit encryption
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Instructions on filing an amended return
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A free income tax calculator to aid in tax filing and maximizing tax savings
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Direct deposit of taxpayer's refund into his or her savings/checking account
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An online status report for verifying receipt of return by the state taxing agency and/or the IRS
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Free email assistance or face-to-face service
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Payment of taxes via credit card
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An online tax guide offering tips on tax-minimization and refund-maximization, as well as clear and simplified answers to questions on any tax issues that might arise.