FLORIDA – E-filing continues to grow in popularity, and eFile4Biz.com, an IRS-authorized e-filing provider for businesses and accountants, wanted to know why. The online e-filing site recently conducted a survey to determine what kinds of businesses were turning to e-filing and what they perceived the benefits were.
The IRS recently published a news release showing an increase in the number of businesses using e-filing over traditional paper filing. According to the news release,e-filing:
- Jumped 10 percent from 2013 to 2014
- Doubled in the past four years
- Was used for 7 in 10 corporate and partnership tax returns in 2014
Most large corporations and partnerships, including those with 250 or more employees, are now required to e-file, which contributed to the additional 600,000 organizations e-filing their tax returns in 2014. But that doesn’t mean e-filing hasn’t caught on with small businesses. The IRS is reporting an uptick in online filing by businesses not required to e-file. eFile4Biz.com’s survey reflected these numbers: of the businesses surveyed, 90% of companies with fewer than five employees had used e-filing.
“We live in an increasingly digital world,” said Chris Ferris, Product Manager at eFile4Biz.com. “As more and more manual processes are replaced by electronic options, it’s not surprising that e-filing is experiencing the same shift. Businesses don’t need to rely on time-consuming and burdensome paper filing of their taxes, nor do they have to buy expensive software. Instead, they can turn to e-filing providers to file taxes online and save valuable time and money.”
The advantages of online e-filing, particularly for 1099s and W-2s, are many. The businesses surveyed by eFile4Biz.com listed their top benefits:
- Ease of use – Of the businesses surveyed, nearly 93% reported that they switched to e-filing because it was easier than paper filing. Instead of navigating software or handling mountains of paperwork, tax preparers filing online only need to follow a few easy prompts. The e-filing process is clearer, simpler and faster than old-fashioned paper filing.
- Saves time – Two-thirds of the respondents opted for e-filing to save time. Because e-filing is a highly streamlined and efficient process, businesses can take back the valuable time and output spent on printing, mailing and manually submitting 1099s and W-2s.
- More affordable – Over half of the businesses surveyed started e-filing to save money. In most cases, online filing is much more affordable than purchasing software and bundles of forms. As a complete solution, e-filing also eliminates the expense of printing and mailing pre-printed forms.
- State-of-the-art security – The final reason why businesses turned to e-filing was the increased security. On reputable, IRS-authorized e-file sites, all user data is encrypted under strict IRS guidelines using the strongest encryption program available. End-to-end data encryption blocks the interception or interruption of information by a third party.
Industry leader and IRS-authorized e-file provider eFile4Biz.com has made online processing of 1099s and W-2s more convenient and economical than paper forms and installed software with comprehensive, front-to-back processing of tax information returns, including printing, mailing and optional electronic delivery to your recipients, and electronic filing with the IRS and SSA.
Release ID: 68721