The ways that individuals and small businesses use IRS tax filing software will depend on a few things. Getting a comprehensive system is important and will be easier once you establish:
- Your budget
- The number of IRS tax forms that you will file
- Which IRS tax forms require you to file them now or later
Manual filing is largely a thing of the past and can create unnecessary complications. Using tax filing software helps users eliminate the cost of expensive 1099 and W-2 forms. A trustworthy software will give you back time and improve the convenience of not needing to load special forms into a printer.
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.
The 1099-etc E-Filer gives users a choice between using the E-File Direct (add-on module) and E-File Services (via third party vendor).
Why is IRS Tax Filing Software Important?
Improving accuracy while speeding up the processing of refunds makes e-filing your tax forms extremely desirable for most users. Filers who have straightforward returns might choose that method over hiring an accountant for a few reasons.
The key benefits of using tax software for filing include:
- Better accuracy and error prevention
- Quicker processing and refunds
- Improved security features
- Convenience and accessibility
- Greater affordability
Accuracy and Error Prevention
Finding the right tax filing program will help users perform complex calculations. Reducing the likelihood of making math errors will minimize any processing delays or possible audit triggers. Getting a better system should also provide users with built-in guidance. Getting IRS tax filing software with a menu-driven format will:
- Prompt you to enter all required information
- Flag potential issues before you submit a tax form
There is a less than 1% error rate for e-filed returns compared to 21% for paper returns.
More Efficient
Greater efficiency is a tremendous benefit to individuals or small businesses who are filing their taxes with software. The IRS processes e-filed returns at a much quicker rate and you will not need to worry about making as many manual data entry mistakes that lead to repeated steps.
The IRS issues most refunds within 21 days for taxpayers who file electronically and select the direct deposit option.
E-filing lets the IRS provide IRS tax filing software users with an electronic acknowledgement within 48 hours as well. Knowing that a return was received and accepted for processing can free up your time for other important tasks.
More Secure
Modern tax software offers robust security measures that will protect your sensitive financial information in a way that manual reporting does not allow you to do. Electronic filing is more secure than mailing a paper return as well. Eliminate the risk of your returns being:
- Lost
- Stolen
- Intercepted
Convenience and Accessibility
Choosing where you file and how you file gives taxpayers more flexibility ahead of the major IRS deadlines. The best IRS tax filing software comes with easy set-up features for a home and/or office desktop computer. Electronic filing has the added bonuses of:
- Creating a digital record of your tax history
- Eliminating filing cabinets where physical paperwork gets lost
- Making retrieval easier during tax seasons and potential audits
Transfer information from previous years with easy importing capabilities rather than having to do repetitive and error-prone data entries.
More Affordable
Saving money is almost always the goal or should be when it comes to individual taxpayers and small businesses filing their taxes in-house. Getting affordable tax software like what we offer in our 1099-etc E-Filer will likely cost less than hiring a tax professional. Before you invest in your next IRS tax filing software, talk to a provider about any long-term fees or potential upsells.
Are Tax Filing Programs Hard to Use?
Using tax software is typically straightforward for users who have a simple tax situation. Using a menu-driven, step-by-step process may only not be enough for more complex tax returns. Filing with fewer moving parts can work as long as your software provides:
- Accuracy checks
- Intuitive guidance
- Data importing
- Direct filing
Most programs allow you to import or generate W-2 and other forms. Making sure that is offered with your software will save time and reduce the risk of making major data entry errors. Getting comprehensive IRS tax filing software with direct filing features will help you to quickly file any returns with the IRS and/or the appropriate state tax agencies.
Filing with a complex tax situation is different and may be beyond your capabilities if you have a truly complicated financial picture. Tax software may still work, but it might call for an advanced version or support from a skilled expert. Complex tax filings can include needing to report:
- Multi-state income
- Itemized deductions
- Investment income
- Self-employment income
Dealing with anything from stocks and cryptocurrency to associated write-offs and filings that involve multiple states can become overwhelming for a first-time taxpayer or someone who is handling the business’s books in-house for the first time. Try an IRS tax filing software demo before you commit to a program so that you know your tax responsibilities are manageable.
Potential Drawbacks or Challenges with Tax Software
Even the simplest of processes can overwhelm someone who wants to use tax software when it comes time to complete their tax returns. Some of the pitfalls can include:
- Hidden fees
- Expensive upgrades
- User errors
- Lack of human guidance
Hidden Fees – Speak upfront with your potential tax software provider about all the associated costs. Any extra fees, especially when filing a state tax return, can add up and quickly exceed a person or business’s budget.
Expensive Upgrades – Do not let any IRS tax filing software provider lure you in with promises that they cannot or likely will not keep. Many programs attract software users by promoting their “free” tier. Speak with a provider or see how transparent their website is about the limitations of a free tier. Either should help you determine when you would need to pay for a more expensive version to handle your tax requirements, including accessing specific tax documents.
Making careless mistakes, like mistyping numbers or personal information, can have significant consequences for a software user. Software is additionally not capable of providing users with the same personalized advice that a tax professional can offer.
When Taxpayers Should Hire A Tax Expert
Switching from IRS tax filing software to hiring a tax professional might make the most sense for your specific needs. The most experienced tax experts will keep you:
Up-to-date on current or any changes to tax laws. Tax professionals are well-versed when it comes to staying current on all of the complex and regularly changing tax laws and regulations. Having someone who is knowledgeable about what you owe on the federal, state, and/or local levels may end up being indispensable if it minimizes the risk of incurring costly IRS penalties.
Stress-free and efficient while handling all tax duties. Taxes can easily get time-consuming and tedious, but they can also become stressful if they are overly complex. Using IRS tax filing software might not be enough compared to hiring the most knowledgeable accountant who you can delegate these tasks to and free up your time to focus on other ones.
Aware of all your eligible deductions and credits. Identifying and applying every deduction and tax credit that you are entitled to is second nature to a tax expert. Getting tax refunds or a lower tax liability might offset a tax expert’s fee and make doing your own taxes less appealing.
Supported in the event of an audit. Tax experts will often advocate for their clients or at least guide them through the process of getting audited by the IRS. Reconsidering the use of IRS tax filing software might be necessary if you are not confident about defending the contents of your filed returns.
Get Started with AMS Software
Our 1099-etc E-Filer is affordable and can be paired with a full-accounting suite of tools. Our base W-2/1099 Forms Filer program integrates with our E-File module or five other optional add-on modules. These include:
- AMS Payroll
- Software Generated Forms
- Forms Filer Plus
- Affordable Care Act Filer
- 1042-S Filer
Download our free 1099-etc Demo software today. The demo is a nearly fully-functional version of the 1099-etc software with only a few exceptions, including how some of the electronic filing features are disabled. Video Tutorials are also available for each of the program modules.
Our IRS tax filing software options for users include:
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
As a small business, we understand the need to reach out with questions or for support. Our live experts will respond to inquiries rather than your call getting directed to a third-party call center.