Use electronic tax filing services so that you can file your business taxes from the comfort of your office. After gathering your information, simply download electronic tax forms, fill them out and file them online. You can find information about how to file electronic taxes from the Internal Revenue and other services, and also use checklists to make sure that you have everything you need so that you can quickly and easily file your business taxes electronically.

Also either create or use a checklist to help you organize your information to prepare to file taxes electronically. Here are some things to consider if you want to learn more electronic tax filing and forms basics:

1. Get information about electronic income tax filing for businesses.

2. Learn about online tax preparation and what you need to do to prepare to file your taxes.

3. Do business electronic tax filing correctly to get an electronic tax refund promptly.

Action Steps
The best contacts and resources to help you get it done

Learn about electronic federal tax filing for businesses

Before you use electronic tax services to file your business taxes, go to the Internal Revenue Service to find out what requirements you need to meet as a business owner. The IRS lists rules and regulations to help businesses file electronic tax returns and also tells you what kinds of forms you'll need to download to file them correctly.

I recommend: Learn how to do an e-file for businesses at the Internal Revenue Service. EFTPS (Electronic Federal Tax Payment System) offers information about how businesses can make electronic federal tax payments after they've filed their taxes.

Get information about 1040 electronic tax filing preparation for small businesses

Knowing what information you need to have available in order to prepare to file your taxes will make it easier for you. Use or create a checklist to help you organize and gather your information to save time and energy. Also download the 1040 tax form, which is the tax form used for businesses.

I recommend: Use the electronic tax preparation checklist from Wells Fargo to help you prepare to file your taxes. TaxBrain offers an online 1040 electronic filing preparation package for small businesses. Download 1040 electronic forms, and then get instructions about how to fill them out from Fairmark Press. E-File Online offers information about how to do an 1040 electronic filing.

Get your refund quickly by doing an electronic federal tax filing

File your taxes electronically with a reputable tax business that will be able to come up with the right tax solutions for you and your business. Learn about how to set up a direct deposit account so that you can receive your tax payment faster than using traditional mailing services.

I recommend: Go to CompleteTax to learn about e-filing and also to get information about getting your refund faster. Do business electronic tax filing with one of the solutions for businesses from TurboTax. Get information about using direct deposit so that you can get your electronic tax refund quickly from FMS.Tres.gov, which is the site for the Financial Management Service -- a bureau of the United States Department of the Treasury.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  One of the best ways that you can begin electronic tax preparation for your business is to keep a file of necessary information and add to it throughout the year.

The big push for electronic tax filing started in 1996 when the IRS began requiring businesses that pay more than $47 million in payroll taxes to file by phone or computer. By 2006, the threshold for required electronic filing had dropped all the way to $200,000 of combined federal tax deposits. Over the past decade, the process has become easy enough that millions of individuals and small businesses have joined in. Both taxpayers and the government prefer electronic filing because it:

1. Dramatically reduces the error rate on returns, thanks to built-in calculators and error-detection checkpoints
2. Allows the IRS and state tax agencies to process refunds more quickly
3. Provides taxpayers with a delivery-date receipt

Action Steps
The best contacts and resources to help you get it done

Find out what's required

Whether you're a business newcomer or a seasoned pro, you may still be in the dark as to what's required when filing your taxes.

I recommend: Small business tax workshops are available in some states — and if your state doesn't list one now, check back closer to tax filing time. The IRS also offers a virtual small business tax workshop, both as sound files and as text. Lesson 3 shows sole proprietors, partners, and corporations how to file taxes electronically.

Apply for an Employee Identification Number (EIN)

If you have employees or file as a corporation or partnership, you need to include an EIN on your business' tax filings.

I recommend: The IRS website tells you far more than you'll ever need to know about EINs, or you can skip the wordy intro and go straight to the online EIN application.

Whip out the W-2s

If you've withheld income, Social Security, or Medicare taxes from an employee, then you must file a W-2 form with the Social Security Administration (SSA).

I recommend: Filing W-2s online with the SSA gives you more time to file (end of March versus end of February), provides you with an electronic receipt, and reduces the amount of paper you need to handle. You'll need to set up an account on the SSA site first, but in future years, the account will be there waiting for you.

Outsource the paperwork

If you'd rather have an accountant do the drudgery for you, there are numerous ways to find accountants who provide electronic filing services. Alternatively, use the Web to find tax software that will help you file your taxes online.

I recommend: The IRS maintains a list of business providers that provide electronic filing services, such as Paycycle, Perquest, and Corporate Payroll Services (which do the work for you) and TaxExact, Taxsoftware.com, and Drake Software (which provide you with forms where you input your own data).

Pay the piper

Filing electronically can be fast and easy, but you still have to suffer the most painful aspect of tax filing: paying the bill.

I recommend: You can pay current bills by credit card or direct withdrawal from your checking account. Another option is to sign up for the Electronic Federal Tax Payment System (EFTPS); through the EFTPS, you can pay current bills in addition to scheduling future payments that are automatically withdrawn on the date and time that you set. The IRS receives notice of these payments, so your tax records are always up to date.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Although electronic filing is supposed to do away with paperwork, consider printing out a hard copy of all returns you file, just in case your computer goes kablooey.
• •  You can deduct the cost of electronic tax filing software or services as a business expense, saving you money on those very same taxes.
• •  Money management programs like Quicken can transfer data directly into your tax returns.
• •  If you go the EFTPS route, sign up for an account well in advance of when taxes are due because the government can take weeks to process your application.
• •  Getting a refund? Choose direct deposit into your bank account rather than a physical check — the money will get into your hands much more quickly.

The only sure things in life are death and taxes, making the convenience of electronic tax filing important for individuals and businesses. Electronic tax filing offers the enticement of less paper, making for a more green and ecological way to file taxes, and, later, electronic tax returns. An electronic tax refund automatically deposits the refund into the individual’s bank account when they e-file their taxes, meaning no one has to sit around and wait for a check to cash.

There are two parts of electronic tax filing, electronic federal tax filing and state tax filing. By incorporating electronic tax filing and forms education and training into their lives, individuals can make the e-filing process easier, more convenient and quick. When looking for additional information on electronic tax filing and forms, you need to:

1. Learn about the electronic tax forms available and what forms would be needed for the specific taxes you are filing.

2. Understand which programs and courses are available for filing your own business taxes when it comes to electronic tax filing.

3. Learn more about online tax preparation when filing taxes for others or assisting and counseling others in selecting the proper forms.

Action Steps
The best contacts and resources to help you get it done

Develop an understanding about the various electronic tax forms and procedures utilized by the IRS

There have been many electronic tax forms generated by the IRS and it is important to understand what one would need to do at time of filing. While the most popular type of filing by individuals is a 1040 electronic filing, supplemented by 1040 electronic forms, it is important to understand all the forms which may be needed by a person during the tax season. For this reason, an awareness of electronic tax forms is beneficial when a person is readying their electronic tax file.

I recommend: The IRS offers their own guide to tax forms, which can be used in electronic tax filing. This site also allows individuals to learn about specific forms and recent changes to the forms. Tax Form Central discusses the why individuals should e-file their taxes, what forms they need when e-filing and how this process may be accomplished. For businesses filing their own taxes, MyOwnBusiness Tax Center offer information about business taxes and popular business tax forms.

Obtain training and software for business electronic tax filing for filing your business' taxes

For employers and employees looking to train to offer business electronic tax services, there are a number of courses and software programs to assist in this. In these instances, it is advantageous for people to learn about popular and effective business tax filing training centers and classes.

I recommend: OrangeDoorInc.com discusses their software for filing business taxes. TurboTax Business is another popular software program used for filing business tax returns. For training courses aimed at assisting individuals in learning how to file electronic taxes for businesses, visit the Kutztown University of Pennsylvania website.

Obtain information to open an electronic tax filing business and volunteer services

When it comes to opening a standard and electronic tax filing business, specific advice and assistance may offer an additional sense of security. As with anything in life, preparation is important. There are a number of resources available to assist in the establishment of a business providing standard and electronic tax filing services. This information may also be useful for individuals who volunteer their services consulting or filing taxes for others on a volunteer basis.

I recommend: Information offered in opening a business to process e filing tax returns can be very helpful to new businesses and individuals. GooGoBits.com discusses how to open an e file business and how to minimize training, which is particularly important for consultants and volunteers who have a limited amount of income to initially invest in such opportunities. Universal-Accounting-Center offers additional information about beginning a venture into tax preparation. Tutorials for volunteers are available at Western Washington University and VITASA.org.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some e-file providers offer guarantees on their service, including standing behind their product in the event of an audit. Most people would be very reassured by having this type of company in their corner. For the best electronic tax filing experience before, during and after the e file process, consider working with a company which guarantees their work.

Electronic tax filing involves the use of e-forms in order to submit your tax information to the IRS. Electronic filing ensures that your information is transmitted quickly to the IRS in order to reduce the waiting time if you’re expecting a refund.

Using electronic filing forms also ensures accuracy since you will receive an error message if information is incorrectly entered or missing from the form. Also, within a 48 time frame the IRS will send an electronic notification to allow the filer to know the electronic tax forms were received.

Action Steps
The best contacts and resources to help you get it done

Free File

The Free File program is a collection of electronic filing services provided through the IRS as well as the Free File Alliance. The software program is available through the IRS website and allows individuals with incomes less than $56,000 to file for free.

I recommend: Find out more about the Free File electronic filing program on the Internal Revenue Service site.

EFTPS

EFTPS stands for Electronic Federal Tax Payment Service, which is an automated tax payment service that you can sign up for by filling out an electronic filing enrollment form. Once enrolled, federal tax payments are automatically deducted from your bank account.

I recommend: Check out the “About” page on EFTPS to learn more about the service.

E-filing options

E-filing options are the different allowances for each state regarding electronic filing. Some states allow you to use electronic filing forms while others still rely on paper forms.

I recommend: Review e-filing options for each state on TaxBrain.

Form 1040

Form 1040 and its variations, 1040A and 1040EZ are the most popular forms filed electronically for single and joint filers. These forms and their attached schedules are not filed electronically by businesses.

I recommend: Get definitions about Form 1040, 1040A and 1040EZ on the Fairmark website.

Direct transfer

When you electronically file, you can have your refund directly transferred to your bank account by providing your financial details, including account number and routing number. The IRS will give you an estimated date when the direct transfer will take place.

I recommend: Read through the FAQ section of E-File Online to learn about direct transfer.

EIN

As a business, you will need an EIN or employee identification number in order to access electronic filing forms to submit your taxes. This number is used by the IRS to identify your company.

I recommend: My Own Business gives you information and links about EIN in regards to filing taxes online.