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Home > Banking News > E File Can Help Reduce Undelivered Tax Refunds
E-File Can Help Reduce Undelivered Tax Refunds
The IRS is looking for more than 84,000 owners of undelivered tax refunds. E-file combined with direct deposit can help reduce this problem.
(PRWEB) November 2, 2005 -- The Internal Revenue Service has reported that it is "seeking 84,290 taxpayers whose income tax refund checks could not be delivered in 2005. Checks totaling approximately $73 million can be reissued as soon as taxpayers correct or update their addresses with the IRS. In some cases, a taxpayer has more than one check waiting. The average amount owed to each taxpayer is $871."
IRS Commissioner Mark W. Everson said, "Our goal is to get this money back in the hands of the people it belongs to. Visiting IRS.gov makes it easy for taxpayers to see if they've missed a refund."
E-File & Direct Deposit Help Tax Refunds Find Their Owners:
To put an end to undelivered refunds, taxpayers can join more than 52 million individuals this year who have taken advantage of Direct Deposit. Taxpayers who choose this service received their tax refunds directly into their personal checking or savings account. According to the IRS, Direct Deposit, which also guards against theft or lost refund checks, is available for filers of both paper and electronic returns.
If tax filers electronically file (E-file) and use direct deposit the problem can be further reduced; tax form errors are reduce and more quickly remedied. Online tax software and e-file dramatically reduce tax return errors. According to the IRS, an error rate of about 20% is found with paper tax returns. In comparison, tax returns which use e-file have an error rate of about 1%. With e-file, if an error is found, the tax filer can correct and resubmit their return quickly, electronically, and often themselves online. Also with e-file, the tax filers gets an official IRS acknowledgement that their return was received. E-filed tax returns are generally processed in about 24 hours. Online tax services like Taxhead.com offer free tax software designed to improve tax form accuracy and greatly reduce tax form errors. For a small fee, tax filers can e-file their tax return online. Direct deposit is offered for all tax filers.
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