2008 e-file and Free File Kick Off Interview

Branscome: Hi… I'm Theresa Branscome from the Internal Revenue Service. Joining me is David Williams.  He's the director of the Electronic Tax Administration for the IRS.  He’s going to tell us ...

• What the benefits are of filing your taxes online.
• How you can do so for free. 
• And… what you should do if you're affected by the recent alternative minimum tax legislation.

Welcome… David.

Williams:  Hi Theresa.

Branscome:  First of all… why should people electronically file their tax return?

Williams:  Well Theresa, filing electronically is the easiest, most accurate and fastest way to file a tax return.  It’s easy because tax return preparation software helps you go through the interview process.  You don’t have to know the tax law.  It helps you fill out the forms, and you don’t have to know the details.  It also can help you file your state forms as well as your federal income tax. It’s accurate, because e-file has a much lower error rate than filing on paper.  And it’s also got an added benefit in that people get an acknowledgement back from the IRS within 48 hours of filing their return.  It’s also fast.  It can be combined with direct deposit.  And people can get their refunds in as little as ten days.

Branscome:  Wow. Well, what is free file?

Williams:  Free file is exactly what is says it is.  It’s a way for taxpayers to prepare their returns for free and file them electronically.  There are 19 companies that work with the IRS to make their software available through our website
To help taxpayers file electronically and do it for free.  If your income is less than $54,000 a year, you’re eligible to use IRS free file.

Branscome:  So should I search for free file looking online?

Williams:  Well actually, no.  In fact, the only way to get to free file is to go to IRS-dot-gov, the IRS website, and use a free file product.  It’s important as I said to go to www-dot-IRS-dot-gov yourself and ensure that you are working through the IRS website to get to the free file program.

Branscome:  There's been a lot of talk about the recent alternative minimum tax legislation and 13 and a-half million people have to wait until February 11th to file.  Now, how do you know if you're one of these people?

Williams:  Well Theresa, I should say that we anticipate that only about 3 million people will be affected and asked to wait during this time period. For those folks, the way they’ll know whether they’re affected is if they have to file one of five forms? Education credits, residential energy credits, the mortgage interest credit, the District of Columbia first-time homebuyer credit, or the child and depended care expenses credit for 1040-a filers.  For those people who want to know more, because I just rattled off those credits, go to IRS-dot-gov and we have lots of information about the credits and how to file if you are affected by one of them.

Branscome: Now what if I file one of these forms but decide to e-file before February 11th?

Williams:  Well, if you send that form in before February 11th and you’ve got one of those credits, we’ll reject it.  You’ll have to come back in and re-file on February 11th or later.

Branscome:  What about people who bought their tax software early?

Williams:  Well, that’s a good question.  The early versions of the software obviously do not have all of the latest changes in the legislation.  So the way the software companies do it, is they ask you if you will update your software.  And I would encourage any taxpayers who are using an electronic product to make sure they download the latest updates before they prepare their returns.  So that they’ve got all the latest information and then they won’t make a mistake with regard to the alternative minimum tax.

Branscome:  Well David, thank you so much for this information.

Williams:  You’re welcome Theresa.

Branscome:  And thank you all for joining us. I'm Theresa Branscome. And remember, the official website for IRS information is found at IRS-dot-gov.

Audio File: 2008 e-file and Free File - Theresa Branscome from the Internal Revenue Service joined by David Williams, 4:07 minutes long.  The audio file will open in Windows Player, and you will be able to pause, fast forward, rewind, mute, and control the volume from the interactive player. 

IR-2008-5, Jan. 10, 2008 - IRS E-File Opens for 2008 Filing Season for Most Taxpayers

Audio and Text Scripts of Audio Interviews 2008