Electronic Tax Filing Gets Easier

The Internal Revenue Service is moving slowly toward paperless tax returns. Last year, only 20% of returns were filed electronically. The service's ambitious goal is to have 80% of returns filed electronically by 2007.

E-filing isn't free for everyone -- costs can range from $10 to $45 for a federal return -- but there still are some obvious benefits. If you are owed a refund, you'll probably get it back a week or two earlier. And if you e-file, you'll know immediately if something basic is wrong with your return. You simply won't be able to electronically submit an incomplete return. That will prevent you from, say, transmitting a return that doesn't include your Social Security number. It would take the IRS weeks to notify you of this error via snail mail. ...