How should I file my tax return... using IRS e-file or IRS TeleFile?

Although mailing tax returns to the IRS remains the most popular filing method, IRS e-file has, during the past few tax years, become increasingly more popular. Last year 72 million tax returns were filed using IRS e-file. The IRS has stated that by tax year 2007 they will require 80% of all tax returns to be filed using IRS e-file.

IRS e-file

IRS e-file is faster, safer, and more accurate than mailing your tax return to the IRS because with IRS e-file your tax return is transmitted over telephone lines or the Internet directly to an IRS computer.

Some of the benefits of IRS e-file are:

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

IRS e-file is the best way to file your tax return.
To e-file your tax return right from this web site click

IRS TeleFile

The IRS discontinued its TeleFile program effective August 17, 2005. TeleFile allowed taxpayers to file Forms 1040EZ, 4868, and 941 by telephone.

IRS TeleFile is an interactive IRS computer program that calculates your tax and begins the e-filing 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 Form 1040EZ or by IRS TeleFile last tax year will receive a special TeleFile tax package from the IRS that allows them to TeleFile their 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 Form 1040EZ, get the IRS TeleFile tax booklet (TEL-1) 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 tax return as single or married filing jointly;
	you are under 65 years of age on January 1, 2005;
	you had taxable income only from wages, salaries, tips, taxable scholarship or fellowship grants; unemployment compensation; interest (less than $1,500 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 file your tax return if you:

	need to change your tax return filing status, name, or address;
	need to claim any dependents;
	need to claim a tax deduction(s) on your tax return for being over 65 or blind;
	did not receive the IRS TEL-1 tax booklet;
	are filing the tax return of a deceased taxpayer;
	received any advance earned income tax credit payments;
	repaid any unemployment compensation in 2004.

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 fill in 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.

Related tax information about IRS e-file and IRS TeleFile

Tax Directory Topics about IRS e-file and IRS TeleFile:
Electronic Filing
TeleFile
General Tax Questions

IRS publications about IRS e-file and IRS TeleFile
For more information about IRS e-file refer to Tax Topic 252, Electronic Filing. For more information on TeleFile refer to Tax Topic 255, TeleFile. Also see IRS Publication 17,

Your Federal Income Tax. Please read this IMPORTANT Editor's Note regarding navigating IRS publications with Adobe Acrobat Reader.
IRS publications can also be ordered by calling 1-800-829-3676.

Customer Support

Still have IRS, tax, or IRS e-file Questions?
To view the Alphabetical Master Index of all IRS, tax, and IRS e-file topics click here.

Ask Julian Block your IRS and tax questions!

If you can't find the answer to your IRS or tax question in our web you can call former IRS Special Agent and one of the country's foremost tax attorneys, nationally syndicated columnist ("The Tax Adviser") Julian Block. Julian is also the tax Editor of Mutual Funds Magazine, America's premier investment magazine.

To call Julian for a tax consultation click here.

Prepare and e-file your IRS tax return and State tax return online - If you'd like to e-file and/or print your IRS tax return or State tax return online click here.