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Spokane, Washington  Est. May 19, 1883

Irs Gives Taxpayers New Avenues To File Tax Returns From Home Pcs

Associated Press

Taxpayers can use any of nine tax-preparation computer programs to file returns with their personal computers this year.

Wednesday’s announcement by the Internal Revenue Service represents an expansion of a test run last year for subscribers of CompuServe and America Online. The IRS expects about 100,000 on-line returns, up from fewer than 1,400 last year.

The advantages, according to the IRS, are faster refunds three weeks compared with 40 days for a paper return - and greater accuracy.

Here’s how it works:

Taxpayers with access to personal computers purchase any of nine software packages and complete their returns using the software. They then follow instructions in the computer program for electronically transmitting their returns to an on-line middleman - either CompuServe or one of five other transmission companies. America Online isn’t participating.

Prices of the software vary from about $20 to $80. Also there can be an additional fee - starting around $15 - for electronically transmitting returns to the IRS.

The transmission company converts a return into a format readable by IRS computers and sends it electronically to the agency. The IRS will notify the taxpayer through the online middleman if the return is accepted or, if not, what must be corrected.

After the IRS accepts a return, the taxpayer follows up by mailing W-2 forms and a one-page signature document - Form 8453-OL - to the transmittal company handling the return. The transmitter submits the client’s documents to the IRS.

Each on-line taxpayer can transmit up to three returns. For example, a married couple could transmit a joint return and returns for two children.

As with paper returns this year, on-line filers can get refunds deposited into checking or savings accounts. For those who owe taxes, some of the transmission companies accept credit cards, which the IRS does not yet do.

The IRS says it has taken steps, including background checks of the transmission companies, to ensure that tax information is not misused. Companies misusing the information are subject to criminal and civil penalties and would be barred from the program, agency spokesman Don Roberts said.

Transmission firms also are required to retain electronic returns they handle so the IRS can verify that the information taxpayers’ send was not changed in transmission, he said.

Many professional tax preparers also offer electronic filing for a fee.

The IRS has been exploring allowing taxpayers to file directly - with no intermediary - through the Internet or with their computer’s modem. It is considering a test of that this year.

More information is available on the IRS’ home page on the Internet’s World Wide Web - http:/ /www.irs.ustreas.gov.

xxxx On-line filing Software packages offering on-line filing are: Intuit’s TurboTax for Windows. Intuit’s MacInTax. Kiplinger TaxCut. Computer Associates’ Simply Tax. Prep 1040 Personal. GAC TAXPRO’s The GAC Little ELF. AM Softwares’ AM-TAX. Vertec Solutions’ Cybertax. Auto Tax.