It was said that IRS e-file has already surpassed the milestone of 1bn returns processed, and has revolutionized the way the IRS processes tax returns. More than 112m income tax returns were e-filed last year, or 77% of all individual returns filed.

"E-file is the best option for taxpayers. E-file enables taxpayers to file more accurate returns and receive their refunds quickly and safely," said IRS Commissioner Doug Shulman.

In general, for people concerned about security, it was confirmed that e-file has proved itself as a safe and secure method of filing a tax return. Software vendors and paid tax return preparers use the latest encryption technology, while, within 48 hours, an electronic acknowledgement is issued that the return has been received by the IRS and either accepted or rejected.

With most people receiving a refund, the fastest way to get it is by e-filing and using direct deposit. Taxpayers can get their money automatically in as few as ten days. Last year, more than 79m refunds were electronically deposited into taxpayers’ accounts.

For people who owe taxes, e-file offers payment alternatives such as filing now and scheduling payment on the April tax deadline. Taxpayers who still want to pay by cheque can do so by e-filing and then mailing a payment voucher.

Actually, taxpayers can e-file their tax returns one of three ways: through a tax return preparer, through self-preparation software or through IRS Free File. The IRS does not charge for e-file. Many tax return preparers and software products also offer free e-filing with their services. Free File offers free tax preparation and free electronic filing.

Starting this filing season, any paid preparer who prepares and files more than ten returns for clients generally must file the returns electronically. Taxpayers are encouraged to use tax return preparers who offer IRS e-file.

IRS Free File also opened on January 17, and more than 33m returns have been filed that way since its debut.

Everyone can use Free File, either the brand-name software offered by IRS commercial partners or the online fillable forms. Individuals or families with 2011 adjusted gross incomes of USD57,000 or less can use Free File software. Free File Fillable Forms, the electronic version of IRS paper forms, has no income restrictions.

“Free File can save you time and money. You can prepare and e-file your tax return at no charge. And, the software helps you find the tax breaks you are due,” said Diane Fox, director, Free File programme.