Telefile system boasts a faster return on federal income taxes

Tuesday, January 7, 1997

FINANCE:

Those qualified will have the option of filing over the
telephone in 10 minutesBy Shari Sklut

Daily Bruin Contributor

In an effort to make filing taxes easier on the public, the
Internal Revenue Service is offering over 22 million taxpayers the
option of filing their 1996 federal income taxes over a 10-minute
phone call with Telefile.

Taxpayers who qualify for the system will receive a Telefile tax
package in the mail. Among other requirements, taxpayers with a
status of single or married filing jointly, claiming no dependents,
who have taxable income of less than $50,000 a year and filed the
1040EZ form last year are eligible.

"We know by the characteristics of those who qualify that many
will be students," said Keith Kimball, a communications specialist
for the IRS.

Although Kimball did not make any projections as to the exact
number of students who qualify, he anticipates that many will.

Telefile made its debut last year in California, but has been
tested for a number of years in smaller areas, Kimball said.

The system was originally created as part of an effort by the
IRS "to take on more of a customer service role," he added. Basic
returns filed by phone are processed within 21 days, compared to 40
days with a paper return.

Although Telefile was envisioned before the government began
downsizing, the system saves money as well as time. "Since the
computer does all computations and calculations, there are
virtually no errors. It’s fast," Kimball said, noting that the
system saves money on input personnel as well as paper.

Those who qualify for the program should receive a Telefile
package in the mail by the beginning of January. Once they receive
the material, taxpayers can use the toll-free number 24 hours a
day, seven days a week to file their returns.

At the end of their call, they must enter the personal
identification number sent to them with their package. The computer
then assigns the caller a confirmation number to verify the filing
of the return.

Late filing is unavailable with Telefile.

For those who do not qualify to file over the phone, there are
alternatives to mailing in paper forms. Taxpayers can purchase
computer software through various companies with which they can
complete their tax returns.

Returns can be sent online back to the the software company, who
then forwards it to the IRS.

Taxpayers who qualify for Telefile may opt to file their returns
by mail, but Kimball urges the public to take advantage of the
system. "If they would go ahead and use it, it takes less time for
them," he said.

Taxpayers who used Telefile last year liked the fact that it was
free, fast and convenient, said IRS spokeswoman Laurie Keleman. "Be
very careful to keep track of your package and personal
identification number. Lost packages cannot be replaced," she
said.

Regardless of the time that participants file their returns,
money owed to the IRS is due by April 15, as usual.

According to the IRS, refunds from electronically filed returns
were issued an average of 16 days after filing last year. Direct
deposit is also available with Telefile.

Students who believe they qualify to use the system say that
there may be a marked difference between what the IRS claims as
convenient and reality.

"I’m tempted to use it. It seems worthwhile," said Willy
Walpole, a fifth-year history student. Based on what he knows, he
qualifies for Telefile. But Walpole is also skeptical.

"Anything that the IRS is involved with I’m sure is not going to
be that easy," he said.

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