Villa Rose Associates Ltd.

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FOR IMMEDIATE RELEASE

Electronic Filing of Income Tax Returns, now called e-file

Who, What & Why?

Preparation of your tax return undergoes the same process, whether you elect to mail your return or have it transmitted by computers.  With IRS e-file, we transmit your tax return from our computers right to the IRS. Click! Zip.  Your return is in.  You don't have to worry about your return being lost or delayed in the mail.

The following sequence occurs after preparation when you elect to mail your return to the IRS:

• The U.S. Post Office delivers the return.
• The return is  hand-sorted by category.
• The return is then hand-numbered and blocked,
• Information on the return is manually coded and edited,
• Information is input manually into the IRS computer.

As an authorized IRS e-file provider, we can offer the benefits of e-filing to you.

However if your return is transmitted electronically

• The transmission process is as quick as a phone call,
• The IRS computer receive the data,
• An electronic validity check is performed.  This process verified, among other items, the Direct Deposit data and all Social Security Numbers listed on the return, including children.
• Accepted returns are then input electronically to the same tape system as paper return,
• This process is completed within the same day.
• The transmitter will receive an acknowledgment from the IRS within 24 hours of the initial transmission.

Benefits of Electronic Filing?

• Fast Refund
• Assurance that the IRS has actually received your tax return
• IRS computer checks accuracy
• "Direct Deposit" of your refund
• Less chance of an IRS input error.

Who Can File Electronically?

Anyone who files forms 1040EZ, 1040A, or 1040, including most of the commonly used schedules and forms, may file electronically.  A completed Form 8453, "U.S. Individual Income Tax Declaration for Electronic Filing", is needed to authorize electronic transmission of your return.   Your licensed tax professional will have all of the necessary forms.  If you are filing a joint return, both you and your spouse must sign the form.

How safe is IRS e-file?

It is virtually error-proof.  IRS e-file is so accurate it greatly reduces the chance that you'll get "one of those letter" from the IRS.

How much does it cost?

Most firms charge between $25-50 to electronically file in addition to the cost of the actual preparation of your tax return.  Villa Rose charges $25. Our fee will be included in the fee to prepare you tax return.  For the 1999 income tax returns prepared in year 2000 ALL tax returns prepared will be electronically filed.

What about your signature?

You simply sign the signature document, Form 8453, and we will take care of the rest.  As of December 1, 1999 the Congress is working on legislation which will no longer require a "signature". 

Direct Deposit?

Direct deposit is a free government service that enables you to have your tax refund deposited directly into your checking or savings account - THE FASTEST AND SAFEST WAY TO RECEIVE YOUR REFUND. Payments are sent by electronic funds transfer, thereby eliminating the need to print and mail checks. Your licensed tax professional will have all of the necessary forms and options.

Do States Participate in the Electronic Filing Program?

Most states Do participate in the Electronic Filing Programs.  Some states insist on mailing the refund and others will Electronically transfer funds.  For 1998 NYS will now participate in Electronic Fund Transfer.  In the past they would insist on mailed the refund check.  While most states participate in Electronic Filing Villa Rose only has arrangements with New York State.

How many taxpayers have used IRS e-file?

IRS e-file has been proven and tested by millions of taxpayers. Most have e-filed again and again since the service was introduced more than 10 years ago.  In fact, last year over 19 million individuals chose to e-file their returns.

Refund Anticipation Loans (RALS)

An Electronic Filer may assist you in applying for a RAL.  The RAL is a loan made by a financial institution designated to receive the direct deposit of the anticipated refund.  Once your return has been acknowledged as accepted by the IRS the financial institution may extend to you a loan in the amount based upon your refund.  There will be additional fees for this service.  

As a matter of policy Villa Rose Associates does not participate in the RAL program.

Electronic Signature

This year we will also be filing the State returns (for most states) electronically.

Please bring or mail a check from your account so that we will be able to get the account numbers and bank routing numbers to speed your refund to your account.

This material is not intended to replace specific advice for your situation.  You are advised to discuss your situation with a qualified attorney, tax advisor, or financial advisor. The rules are quite complex and we did not intend to over-simplify these complicated rules.  Our intention was to familiarize you the the concepts and vocabulary so that you may have an informed discussion with a qualified professional.