February 21, 2025
Is E-Filing Safe?
In his February 6, 2024, Wall Street Journal article, "Beware of E-Filing Your Tax Return," Jay Starkman raises concerns about the security and reliability of electronic tax filing. While caution is always prudent, the benefits of e-filing far outweigh the potential drawbacks.
Enhanced Security and Accuracy
Starkman suggests that e-filing may expose taxpayers to security risks. However, the IRS has implemented robust measures to protect electronic filings, making them secure and confidential. E-filing also reduces the need for manual data entry, minimizing errors that can occur with paper returns. This accuracy ensures that taxpayers’ information is processed correctly, reducing the likelihood of issues or delays.
Faster Refunds
One of the most compelling advantages of e-filing is the expedited processing of tax refunds. The IRS issues most refunds in less than 21 days for electronically filed returns, especially when combined with direct deposit. In contrast, paper filings can take significantly longer to process, delaying access to owed funds.
Immediate Confirmation and Convenience
E-filing provides immediate confirmation that the IRS has received your tax return, offering peace of mind that paper filings cannot match. This acknowledgment allows taxpayers to track their returns and anticipate refund timelines accurately. Additionally, e-filing is convenient, eliminating the need for physical paperwork and trips to the post office. Taxpayers can file from the comfort of their homes using IRS-certified software, streamlining the entire process.
Support from Tax Professionals
Many tax professionals advocate for e-filing due to its efficiency and reliability. It simplifies the submission process, reduces the potential for errors, and ensures that clients receive their refunds promptly. The IRS’s preference for electronic submissions further underscores the system’s dependability and the trust placed in it by tax authorities.
Partner with a Trusted Advisor
While it’s essential to remain vigilant about cybersecurity, the infrastructure supporting e-filing is designed to protect taxpayers’ information. The benefits of accuracy, speed, and convenience make e-filing a superior choice for most taxpayers.
At Welgaard CPAs & Advisors, we understand that tax filing—whether electronic or paper—can feel overwhelming. With over 40 years of experience, our team is committed to providing expert tax planning and preparation, business consulting, and financial advisory services. We simplify complex financial matters, ensuring you make informed decisions with confidence. Let us be your trusted partner in navigating tax season and beyond.