Exempt Organizations e-file: Benefits of e-file


What are the benefits of e-file?

E-file is faster, easier and more accurate than filing a paper return.

E-file makes compliance with reporting and disclosure requirements easier by eliminating the need to make copies, assemble all of the appropriate schedules and attachments, and pay for postage. Organizations can comply with public disclosure requirements by posting electronic forms on the web.

E-file results in benefits for both IRS and taxpayers, including:

  • More explicit error conditions – New error code explanations pinpoint the location of the error in the return and provide complete information in the Acknowledgement File.
  • Faster acknowledgements – Transmissions are processed upon receipt and acknowledgments are returned in near real-time, but no longer than 24 hours. No more waiting for once or twice daily system processing cycles.
  • Built-in accuracy checks – Paper Form 990 returns have an average error rate of more than 25 percent. Built-in accuracy checks in electronic return preparation software catch the majority of taxpayer errors before the return is submitted.