Back in 1989 when Cloister Tax Services (then named Peifer Associates) began filing tax returns electronically, some of our clients have asked, "Why?"

Perhaps the better question would be, "Why not?"

Probably the most compelling reason to file electronically is that the IRS acknowledges receipt of the tax return within 24 hours of it being sent. When you place a tax return in the mail you can never really be certain that the documents you sent ever made it to the IRS mailbox. A return lost in the mail can postpone your refund, or, worse yet, potentially cause you to pay penalties because a return was never filed. Returns aren't considered "filed" until they are received by the IRS. If the return gets lost in the mail, you may end up paying penalties and interest.

Once a tax return has been filed electronically it's placed on the fast-track for processing. This is great news for people who are expecting refunds. On average our clients receive their directly deposited refunds within 10 days of filing*. That's about twice as fast as if the return were sent to the IRS via the mail.

According to the IRS nearly 20% of all tax returns prepared on paper have errors -- mostly because of miscalculations. Not only will errors cause the filing process to be lengthened, but they can potentially lead to audits! Returns filed electronically are much less likely to include errors and are virtually error-free when it comes to mathematics. And, if a return with an error does squeek through, it will likely be returned to the tax preparer within 24 hours for correction.

Each year hundreds of tax refund checks are fraudulently cashed. With electronic filing, your tax refund gets deposited directly into your checking or savings account. There's no opportunity for anyone to swipe and cash your refund check.

As you see, there are many compelling reasons to file your tax return electronically. If you have any questions, feel free to contact an associate at Cloister Tax Services. We'll be glad to address your concerns.