SIKESTON - "Electronic filing has a lot of benefits, and it's 'today,'" said Kay Cain, franchise owner of the Sikeston H & R Block.
Available since 1986 through an authorized provider, computer filing is finally gaining widespread popularity. "Over the last few years, the IRS has been advertising it pretty heavily," said Phil Cluck of Fax-Tax, who has been filing returns electronically for his clients since opening in 1990.
Cluck said nearly 100 percent of his clients file electronically. "I mail very, very few tax returns," he said.
As many tax return preparers file electronically for their clients at no extra charge, more and more people are taking advantage of the speedier system. Authorized providers filed 28.9 million returns in 2001 - a 14.9 percent increase, according to the Internal Revenue Service website.
More than 40 million Americans chose one of the several e-file options made available by the IRS in 2001 and the IRS expects more than 46 million e-filers to do so in 2002 as more taxpayers take advantage of the expanding options.
Using e-file options in 2002, taxpayers can file, pay, get a quick refund, or even enter a request for an extension of time to file all without sending any paper to the IRS.
Returning this year is the self-select personal identification number program, started in 2001.
Completely paperless filing is available for those who prepare their own returns using tax preparation software on their personal computer - as more than 6.8 million taxpayers did in 2001 - as well as those who use a tax professional.
In 2001, 4,759,963 taxpayers asked their return preparers to input their self-select PIN and 4,293,085 taxpayers used self-select PINs using their personal computer.
On a joint return, two PINs are required, acting as electronic signatures for both people.
Adding to the popularity of paperless e-filing this year is the anthrax scare which is "slowing down the processing of paper returns," according to Jeff Miles, certified public accountant with the Bucher, Essner and Miles firm. "It's always been slow, but more than likely its going to be slower than it has been even in recent history."
Most e-file refunds, on the other hand, are issued and mailed within three weeks, and with the direct deposit option refunds can reach e-filers in as few as 10 days.
Cain highly recommends direct deposit as it eliminates the risk of the refund check being stolen. "And its faster," she added.
Those anxious to receive their refund have long embraced the speed of electronic filing, but taxpayers can file electronically even if they have to send a payment in, Miles said. "But for the most part if you owe a balance on the return we're still filing it the old-fashioned way."
E-filers with a balance due can, however, schedule an electronic funds withdrawal from their bank account or pay with a credit card rather than sending a check by mail.
Cluck said that while a mailed-in tax return can eat up several weeks going back and forth if a mistake is found, an e-filed return submitted with an error can be fixed within 24 hours.
"It is so much faster," said Cluck. "The turn-round time is less than half the time."
Another advantage of e-filing is that it is easier to track a client's filing status and refund, Cain said.
Taxpayers in 37 states including Missouri have the additional option to e-file their federal and state tax returns in one transmission to the IRS, which forwards the state data to the appropriate state tax agency.
More than 15.2 million taxpayers filed federal-state electronic returns in 2001.