News

Why Tax Software and E-file are Easier than Ever

Zilker Ventures, LLC announces the launch of Tax-Compare.com, a comparison and review website for online tax services.

Austin, TX (PRWEB) April 9, 2008 — Tax software and electronic tax filing (e-filing) have tremendously changed how we do our taxes.

According to the IRS, in 2007 a record-breaking 76.7 million individual tax filers–22.5 million filing from home–submitted their forms electronically. Numbering 2.5 million more than last year, these tax e-filers have virtually eclipsed the dwindling number of those still living in the Paper Age of filing.

We have tax preparation software to thank. The Urban Institute reports that only 13% of self-prepared tax returns were prepared without tax software in 2003. Since 2003, more and more people have discovered tax software products, which simplify and accelerate the process of preparing taxes. Convenient and easy to use, tax software products provide step-by-step navigation through the often daunting tax preparation process.

Offering plans ranging from standard to premium, tax software providers can address a range of consumer incomes and needs. And yet, the IRS reports that 13% of individual taxpayers have not used tax preparation software. Perhaps this group consists of CPAs, number-munching whizzes of the old school or those simply unaware of the benefits and specifications of the many tax software plans.

This last group, the perhaps not-so-blissfully ignorant, will no longer have to seek out information on tax software and its benefits. Tax-compare.com is a site that affords them no excuses. A self-proclaimed "apples to apples" comparison of tax software, the website gives a comprehensive list of different product specifications and advantages, along with reviews that will help buyers choose the product that is right for them.

The reviews are based on key characteristics of tax preparation software, which include:

• Accuracy: Any tax software product checks for errors. Accuracy is important because mistakes cost time (require an audit) and money (IRS fee) and generally delay the tax payer's refund.
• Help with deductions: Tax software provides tax payers with knowledge of maximizing deductions. More deductions equal more savings.
• Affordability: All of the leading software products are under $100; many offer a free IRS e-file option for filing online; and standard plans can be as low as $15-$20 for the most basic services.

These key characteristics are immediately apparent in software plans of market leaders such as TurboTax, TaxCut, TaxBrain, and TaxAct–which are all IRS authorized e-file providers. They also collectively boast: free trial versions and free e-filing, compatibility with other personal accounting software, customer support services, and payment of IRS penalties, among other benefits.

Even with new resources like Tax-compare.com and tax software tools some people will choose to hire an accountant (opt for "paid tax preparation"). Hiring an accountant is generally not recommended, since it can often be more expensive than self-preparation.

For the rest of us, however, using tax software and E-file is an easy choice. Gone are the days of hunkering down in a mess of file folders and paper receipts, of arriving to the post office late and frustrated. We will save time, money, and even trees by doing it ourselves.

--

For additional information regarding tax software, visit Tax-Compare.com.

Zilker Ventures, LLC is a web publisher that consolidates information and reviews various business and financial products.

Contact:

Jennifer Silva
Zilker Ventures, LLC
pr@zilkerventures.com
(512) 448-9031