File online and file early, tax preparers say.
Whether or not you've filed online, or e-filed, in the past, this is the year to do it, says Roger Long, owner of Bismarck's Accounting and Tax Services on Burnt Boat Drive.
"You're eliminating the postal. The tax return itself actually goes directly to the IRS computer, which takes it, encrypts it, processes it,"Long said. "It's just far more accurate."
Last year, just under 167,000 North Dakota taxpayers filed electronically, or a little more than 50 percent, said Tax Commissioner Cory Fong.
This year, Fong expects the number of e-filers to reach 60 percent.
"It's a tremendous advantage,"Fong said. "We certainly are encouraging it for all taxpayers."
Long agreed, saying e-filing is advantageous because it often cuts down on return times, especially when a taxpayer chooses the direct deposit option. And a 24-hour, online tracking system was added this year, called "Where's My Refund."
Janet Moch, premium director for H&R Block on South Seventh Street, said that although e-filing ensures faster returns, it can get confusing with more complex issues, such as multiple incomes or student loan credits.
"In this day and age, a lot of the younger people are doing more of their online tax returns, because they're much more savvy than the older generation,"Moch said. "But then, so many times, they'll say'This took me six hours, and you made it so much easier.'"
E-filing also avoids the hassles of last-minute post office runs and the potential for errors, Fong said.
In fact, the most common errors made when paper filing also are some of the most simple, he said. According to data from the state tax office, paper tax returns are often delayed when taxpayers forget to include a copy of their federal return when filing state taxes, forget to sign returns or forget to include copies of their W-2s.
With e-filing, according to the tax office, the most common paper problems can be avoided, including math errors, entering the wrong Social Security number or mailing the return to the wrong agency.
Both Fong and Long suggested filers with more complex returns, including itemizations or multiple incomes, use a tax preparation service. Most tax preparers do file electronically, ensuring quick returns.
"It cuts down as part of the paperwork reduction act. Reduces the use of paper, toner, postage,"Long said. "'Course, the post office doesn't like that."
Visit the North Dakota Tax Department's Web site at www.nd.gov/tax.
(Reach reporter Crystal Reid at 250-8261 or at crystal.reid@;bismarcktribune.com.)
Posted in Local on Monday, January 22, 2007 6:00 pm Updated: 3:45 pm.
© Copyright 2009, BismarckTribune.com, 707 E. Front Ave Bismarck, ND | Terms of Service and Privacy Policy