As the tax filing season gets underway, many taxpayers will consider electronically filing (or "e-filing") their tax returns. While this is an excellent way to have one's tax return quickly and efficiently prepared and submitted to the Internal Revenue Service with its receipt acknowledged at the IRS Enrolled Agent Carol Thompson, Chair of the National Association of Enrolled Agents' Public Information Committee, alerts taxpayers to several myths about e-filing which should be clarified.

Myth #1 -- If I e-file, I'm more likely to be audited by the IRS. Fact: E-filed returns tend to have a higher accuracy rate and fewer problems than paper tax returns. There's no greater likelihood that an e-filed return will be audited. In fact, fewer mistakes on e-filed returns make them less likely to trigger a call or letter from the IRS.

Myth #2 -- I only need to e-file if I'm due a refund or want a Refund Anticipation Loan. Fact: E-filing is an ideal way for many taxpayers to file their taxes. You'll benefit from fast and efficient processing of your return -- regardless of whether you're due a refund . . . or owe the IRS. Taxpayers who e-file their returns don't have to pay any taxes to the IRS until April 15th . . . regardless of when their tax returns are transmitted.

Myth #3 -- I can e-file only if I have a "simple" tax return. Fact: E-filing can be used on many returns today. The IRS has made great strides in expanding the forms which can be transmitted -- and accepted -- in its e-filing program.

Myth #4 -- E-filing is still experimental. It's better to wait until the "bugs" are worked out before I try using it for my own return. Fact: E-filing has grown rapidly in recent years. Last year, for instance, nearly one-quarter of the 100 million returns sent to the IRS were e-filed.

Myth #5 - My Enrolled Agent will charge more to e-file for me than to submit a paper return. Fact: Some Enrolled Agents may charge a bit extra for this service; others, however, don't charge additional fees to e-file tax returns for their clients.

Enrolled Agents are the only tax practitioners licensed by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service.

Tax laws are subject to change at any time.

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