A: States available for e-filing through Fax-Tax Systems™:
ALABAMA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, GEORGIA, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUKY, LOUISIANA, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, RHODE ISLAND, SOUTH CAROLINA, UTAH, VIRGINIA, WASHINGTON, WEST VIRGINIA and WISCONSIN.
State availability is subject to change.

A: E-filing is a method by which a tax return is converted to computer readable form sent via modem to the Internal Revenue Service. When a tax return is sent in such a manner, a refund can be received by direct deposit to an account designated by the taxpayer much faster than traditional methods.

A: The obvious reason is to receive your refund faster. Another reason is that e-filed tax returns have a higher degree of accuracy than paper filed returns due to the extensive checking performed by the e-filing software. Detecting and correcting these errors early permits the tax return to flow smoothly through the IRS with less chance of a delay in your refund.
There is absolutely no truth to the rumor that e-filed tax returns have a higher likelihood of being audited.

A: The IRS issues a direct deposit refund in about 10-17 days after receiving an e-filed tax return. Taxpayers requesting a check be mailed to their home will have their refunds mailed in about 18-25 days from the date the IRS receives the e-filed tax return. In certain cases, unique to an individual tax return, the refund may be delayed by an additional week.
In limited circumstances a refund may be substantially delayed. Returns that fall into this category would be delayed for the same reasons even if they had been filed by the traditional paper method. A taxpayer will always receive a refund faster when it is e-filed.

A: The most common method is giving an original paper tax return and W2s to an IRS accepted ERO. The taxpayer signs Form 8453 (provided by the ERO) which gives the transmitter permission to convert/transmit the tax return to the IRS. The ERO forwards Form 8453, along with any legally required attachments, to the IRS.
Tax returns can be transmitted to the IRS only by IRS accepted transmitter.

A: That is based on local market conditions. Typical fees run from $0 (with paid return preparation) to around $40 where the market will bear it.

A: You are paying for the service of converting your tax return from paper to computer form. If you are transmitting from your PC to an IRS approved transmitter, you are paying for the software that permitted you to perform this function. The IRS itself does not charge a fee to receive an e-filed tax return.

A: You must apply to the IRS to become an Electronic Return Originator (ERO) before you may collect tax returns for e-filing. Use Form 8633 to apply.