Considerations when e-filing tax returns

Filing an electronic tax return early can have significant advantages, according to some experts.

Once it is filed, the individual receives immediate confirmation of its receipt and acceptance by the IRS. If not, then the taxpayer may have been impersonated for purposes of fraud, and learning that right away leaves more time to correct any problems. Payment can be held until a later time closer to the due date, certified public accountant Marshall Hunt told the Belleville News Democrat.

With fraudulent schemes, audits and other potential complications that can arise, experts and the IRS alike warn that taxpayers should be careful when selecting a source of accounting tips or choosing an accounting or tax firm to assist them. While scams commonly target seniors, they may victimize anyone whose personal financial information can be accessed.

When filing returns and preparing for potential questions from the IRS, experts note that it is important to have all documentation. This may include business receipts, medical bills, corroboration of charitable deductions by the recipient, bank account information and returns from prior years, among other items.

When e-filing, acknowledgement of the return generally arrives within 48 hours of sending it in, CBS Money Watch notes. If notification has not been received at that point, then it may be a sign that there is an issue of some kind, or that the IRS has yet to receive the document.