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> One of the craziest things is, it save their tax department money for every single tax filing done online vs paper One of the HUGE benefits of e-file for the

> One of the craziest things is, it save their tax department money for every single tax filing done online vs paper One of the HUGE benefits of e-file for them is that there are sanity checks that happen almost immediately and if they fail the IRS completely rejects the return. This does two things: 1. ensures accepted returns look much closer to accurate 2. places the burden of rejection notification on the e-file transmitter. For example, if I transmit a tax return that the IRS rejects due to a re-used SSN, the onus is now on me to notify that filer that their SSN has likely been stolen and provide customer service on what they should do next. From the IRS perspective this is a huge win. For e-file transmitters and tax software providers this is an un-fun problem to deal with.

Crito 12y ago
> "IRS rejects due to a re-used SSN" Would they really do that? It seems like that would give you two problems. Your SSN was stolen and now you can't file your taxes too. The proper response would probably be to notify you, accept your documents (and the other documents presumably submitted by somebody else) tentatively, then do some investigation to determine which one is authentic.
- clogston 12y ago
  Yes, indeed, they really do that. The person who has had their e-file reject must submit a paper return and call a special 800 number dedicated to this issue. It's a total double-whammy for the user. IRS tries to resolve these issues within 180 days... and if that delay of their return causes a financial burden they can file a petition. The wheels of progress turn slowly.
  - erichurkman 12y ago
    This is how a colleague of mine caught identity fraud. Someone had filed several fake tax returns with his information, called to have all of them invalidated as fake before submitting the "real" fake return, collecting the payment, and thus making it yet-harder for the real guy to claim the fake-but-not-fake was a false return.
  - lstamour 12y ago
    Hmm. Canadian here, our SSN is called an SIN. NETFILE, which I didn't think was that innovative, matches SIN number to date of birth on file (which can be changed by phone call) and regardless, sends a refund to the address on file (which, like Direct Deposit settings, can be changed through a web interface). That said, I've never heard of someone committing tax fraud electronically, given the barrier to change an address. Google revealed no reported incidents, not even on forums. And if I had to submit on paper, as only 25% or so of Canadians do now, the software will let me print out all the forms I need, and if necessary, the PDFs from the CRA have fillable fields, IIRC. That said, there are still too many form types, even though most don't apply to me.
  - hkphooey 12y ago
    A lot of general phone support has been shut down and you are now told to look at the website. I think the temporary phone shut down during the last debt ceiling government shutdown saga is now permanent.
- smackfu 12y ago
  OTOH, with this system, once you file you are protected from future identity theft. Since most people will file by the deadline, that limits the potential exposure.
- bjelkeman-again 12y ago
  In much of Northern Europe we use our digital IDs to file our taxes. Which means it is hard to submit fake tax returns in my name.

Crito 12y ago

> "IRS rejects due to a re-used SSN" Would they really do that? It seems like that would give you two problems. Your SSN was stolen and now you can't file your taxes too. The proper response would probably be to notify you, accept your documents (and the other documents presumably submitted by somebody else) tentatively, then do some investigation to determine which one is authentic.

clogston 12y ago
Yes, indeed, they really do that. The person who has had their e-file reject must submit a paper return and call a special 800 number dedicated to this issue. It's a total double-whammy for the user. IRS tries to resolve these issues within 180 days... and if that delay of their return causes a financial burden they can file a petition. The wheels of progress turn slowly.
- erichurkman 12y ago
  This is how a colleague of mine caught identity fraud. Someone had filed several fake tax returns with his information, called to have all of them invalidated as fake before submitting the "real" fake return, collecting the payment, and thus making it yet-harder for the real guy to claim the fake-but-not-fake was a false return.
- lstamour 12y ago
  Hmm. Canadian here, our SSN is called an SIN. NETFILE, which I didn't think was that innovative, matches SIN number to date of birth on file (which can be changed by phone call) and regardless, sends a refund to the address on file (which, like Direct Deposit settings, can be changed through a web interface). That said, I've never heard of someone committing tax fraud electronically, given the barrier to change an address. Google revealed no reported incidents, not even on forums. And if I had to submit on paper, as only 25% or so of Canadians do now, the software will let me print out all the forms I need, and if necessary, the PDFs from the CRA have fillable fields, IIRC. That said, there are still too many form types, even though most don't apply to me.
- hkphooey 12y ago
  A lot of general phone support has been shut down and you are now told to look at the website. I think the temporary phone shut down during the last debt ceiling government shutdown saga is now permanent.
smackfu 12y ago
OTOH, with this system, once you file you are protected from future identity theft. Since most people will file by the deadline, that limits the potential exposure.
bjelkeman-again 12y ago
In much of Northern Europe we use our digital IDs to file our taxes. Which means it is hard to submit fake tax returns in my name.