This is really a major breakthrough. The IRS is expecting 42.3 million electronic tax returns out of a total projected 129.7 million returns by April 16, up from about 35 million that were e-filed a year ago. You're 40 times less likely to hear from the IRS if you file electronically,'' said Terry Lutes, IRS chief of electronic tax administration. Among the new IRS forms being made available electronically are those for supplemental income and loss, depreciation, wage and tax statements and farm rental income.
Fees apply in both cases.
Beginning April 1, taxpayers can seek a filing extension from the IRS through the TeleFile touch-tone phone system and allow taxes to be deducted directly from bank accounts. Combined state-federal filing will be expanded to all states with an income tax. Acceptance of 1040, 1040A and 1040EZ forms from U.S. overseas possessions. Paid preparers will be able to write in comments supporting or clarifying an entry on a client's tax return. Copyright 2001 Associated Press .