Free Online Tax

Firstly, an IRS tax return is the general name for the form used to file taxes payable to the federal or local government, which is filed with the IRS. This form includes information such as your gross income, allowable deductions, tax credits and tax that is due. As an individual taxpayer, you would file the Form 1040 on a calendar-year basis. Corporations should file the Form 1120 on either the calendar-year or fiscal-year basis.

Also, tax returns must also be filed for partnerships using a Form 1065, estates with Form 706 and Form 709 is used for gifts you have received. The IRS, or the Internal Revenue Service, is the federal agency that is responsible for administering and enforcing the American Treasury Department's revenue laws through the assessment and collection of taxes and other related procedures.

What is Online Tax Filing?

Filing tax returns involve sending the tax return to the IRS once all the forms have been completed. You can file tax returns either manually or electronically, although electronic filing (or e-file) is generally encouraged over manually filing where possible. This is because there are many benefits for online tax filing, compared to manual filing.

Online tax filing offers secure, paperless filing of your tax returns and ensures that your filing is delivered as you will receive electronic acknowledgement when it has done so. It allows you to avoid unnecessary trips to the post office and the possibility of the tax return getting lost or delayed.

Also, you are able to file federal and state taxes at the same time. Finally, online tax filing offers payment options like direct deposit, electronic fund withdrawal and allows you to file early but pay later too. E-file also keeps a secure record of all your tax returns, to ensure that you hold onto your current and past tax returns as required.

Free Online Tax Filing Programs Vs. Paid-For Online Tax Filing Programs?

Free online tax filing programs often do not provide the same level of support that the paid-for versions can. Often the free online filing offers the basic, allowing you to fill out and file tax returns and keep a record of the current and past tax returns. However, many paid-for online filing programs can help you get the most out of tax deductions as legally possible and offer tax advice, support and reports.

What Happens if You File Your Tax Return Late?

If you should file a late tax return there are ramifications that you will have to face in most cases. If you are owed a tax refund, the IRS usually are not too concerned when you lodge your return, they seem to be happy enough to hold onto your tax refund for as long as you let them. However, if you are calculated by the IRS to owe them money, this is when you will have to face the ramifications of your inaction. Late fines ranging from $110 to $550 will apply if you manage to file your late tax return within four months of the due date.

Fines of between $550 and $2,750 will be charged to you if you have still not filed you tax return after four months. Interest is then added to the amount of outstanding tax that the IRS calculates that you owe them. The amount they calculate that you owe them will also probably be more than you would normally owe them, as they will not be dedicated to giving you tax deductions that they cannot support (as they don't have the supporting documents). So even if you are six months late with filing your tax return, it will still be beneficial to you to lodge it.

If you are found to be avoiding tax, more serious financial and legal penalty will, of course, apply. Online tax filing can eliminate this problem for you by making sure your tax returns are filed early, even if you pay later.

If you have trouble completing your tax return on time, or find it a hassle to deal with all the paperwork and the trips to the post office, online tax filing may just be the answer you are looking for. Take the pressure off, complete and file your tax returns the easy way and sign up for online tax filing today!