Filing tax returns and other forms with IRS e-file software can be done in-house by individual taxpayers and small businesses. Finding a software system that works best for your tax filing needs will require you to know exactly what your goals are for any tax season and during the rest of the year. The core qualities to look for in electronic filing software include the four A’s:
- Accuracy
- Affordability
- Automation
- Accessibility
Advanced Micro Solutions’ 1099-etc E-Filer software is the most affordable solution on the market and is highly customizable for software users who need a scalable solution.
Overlooking any of these qualities in your e-filing software will create more work for you instead of taking some of the stress out of tax filing season. Our E-Filer gives users two distinct options:
- E-File Direct (add-on module)
- E-File Services (via third-party provider)
Seeing which system works best for you will help reduce your risk of tax filing errors.
Who Benefits From Using IRS E-File Software?
When you should switch over to electronic tax filing software can be dictated by a few factors. Software users often get themselves a program based on:
- Government mandates
- Complexity of tax returns
- Convenience and accuracy
The people who can and should explore e-filing solutions are:
Individuals
E-filing your own tax returns is not universally mandated by the government. It does not mean that tax filing software will not protect you more than manual filing.
There is a less than 1% error rate for e-filed returns compared to 21% for paper returns.
The IRS provides a Free File service option for individuals with lower incomes, but there is also software available at an affordable price that offers more features. IRS e-file software should be able to help you with:
- Simple taxes (single W-2 and standard deduction)
- Complex but manageable situations (self-employment income, investment, multiple businesses)
Doing taxes for yourself is not for everyone. Trying demos or free trials for a program before you commit to one will give you a good idea of whether or not you can handle these duties in-house.
Businesses and Employers
Internal Revenue Service regulations require many businesses to use e-file solutions to submit their federal information returns and any employment tax forms. Software for business users is meant to fulfill:
- Larger filing volumes (10 or more information returns in a calendar year)
- Quarterly or annual employment tax forms (Forms 940 or 941)
- Corporate and partnership returns
IRS e-file software keeps its users compliant and organized in a way that manual filing cannot achieve. Using software with excellent recordkeeping will simplify how you access all previous and necessary forms in the event of an audit.
Tax-Exempt Organizations
Tax-exempt organizations know that it is not unusual for the Internal Revenue Service to require them to electronically submit their annual information returns. These may include:
- Form 990
- Form 990-EZ
- Form 990-N
Mandatory filers and others who elect to use e-filing solutions may also do so to:
- Receive quicker refunds
- Get improved security when transmitting sensitive financial information
- Catch common mistakes and avoid filing corrections
Most refunds arrive in less than 21 days for electronically filed returns.
When is In-House IRS E-File Software Not Enough?
Try not to base your tax filing software decisions on what others are doing around you. Dealing with unusual transactions or multiple state returns can be difficult for you to coordinate correctly on your own even if you use software.
Major life changes may also complicate e-filing for users, including if you recently:
- Got married or divorced
- Switched jobs
- Had or adopted a child
- Received an inheritance
Think about how e-filing solutions will work best for you in the short and long term. Giving more detailed thought to these types of decisions will help prevent you from needing to purchase new software too soon.
Get Started with AMS Software
Download our free 1099-etc Demo software today to see how our IRS e-file software operates with the base W-2/1099 Forms Filer program or as part of a full-accounting suite of tools.
E-File Direct
- Flat fee
- Unlimited number of form filings
- Users can verify, view, and print files
E-File Services
- Volume pricing (fee per form)
- Forms are e-filed through a third-party vendor
- Different service levels available
Transparency and communication are crucial between software users and providers. It is why we make sure that our live experts are available to answer your technical questions about our tax filing software. Experts familiar with our products can also explain the information provided on our Frequently Asked Questions page.