Frequently Asked Questions

What Is Electronic Filing?

how to efile

eFile or Electronic Filing as what it’s popularly called is a method filing taxes. It was exclusively outlined by the Internal Revenue Service (IRS) about 40 years ago in 1986. Each year, personal income taxes amounting to over a hundred million are filed this way.

Electronic Filing formats the data needed on a tax return into an electronic format then transmits it to IRS and specific states via a secured and encrypted internet connection.

From the Tax Filing season back in 2011, the IRS used the Modernized eFile or MeF as the method of choice in filing personal income tax eFilings, and LocusTax.com is currently using this filing method.

When filing your taxes using our system, the state tax authority and IRS will acknowledge receiving the information and will indicate if your tax return was rejected or accepted. Whichever result was given, you will receive a notification immediately via email, including more information on the steps to take on your account created within our system.

eFiling online primarily consists of four parts:

#1

Constructing of the tax return based on the data you’ll be providing

#2

Formatting the eFile and the printable. PDF for the user to download

#3

Transmitting your tax eFile

#4

Filing the papers: If you are asked to submit specific paper documents, Form 8453 can be used to summarize and send these, which will be provided in your login.

What are some advantages to eFiling?

Before transmission, your tax return will be subjected to tight error checks. After that, the Service Center will be doing a more extensive error check to make sure the tax returns will have significantly minor errors.

With the tax return’s efficiency, together with the new IRS customer account infrastructure or CADE 2, the time it takes for issuing a refund will be reduced. When you receive your return electronically, you will get the refund sooner than you expect.

If you have to pay your taxes, you will like our I-PAYbyCreditCard payment option with convenience to pay off the balance on your account. A paper voucher payment will be available to mail and print. Payment of taxes is needed to be made on or before the return’s due date, usually, April 15th, regardless if you have eFile. ACH Debit or Electronic Refunds Withdrawal is another option to pay that’s available in our system.

Fast IRS acknowledgment. Opposite to post mail, electronically-filed tax returns are acknowledged by IRS and once approved, the returns can be identified with a Submission ID. Also, LocusTax.com will provide an ePostmark or electronic postmark for all the filed tax returns. The ePostmark will have the same validity and effect to the IRS as it will be affixed at the post office, and as an advantage, it will be equated with the eFiled tax return. This speed will not exist if your taxes were filed via postal mail.

How do I get started?

Our tax filing service compelled by an easy interview method which will have a sequence of questions that will change vigorously, depending on your particular tax situation. Our “tax robot” will process your input then calculates the data and computations needed by the tax authorities. It’s necessary that you finish the entire sequence to ensure that you get the most accurate and highest refund if it applies.

In each section, you’ll be asked if you have to submit more data on another form.  Example, if you have three W-2 forms, click the “SAVE & ADD NEW” button at the end of the form for each additional W-2 form you may have.  As an example, two of the W-2s might be yours, and the other might belong to your spouse if filed jointly.

If you have chosen a form input page that you don’t need, you can click the ”DELETE FORM” button at the end of the page.  If you made a mistake on the form, click the ”IGNORE MY CHANGES” button.

I Would Like to Directly Deposit My Refund to My Bank Account. Can I Do It?

Yes

The states and the Internal Revenue Service allows for your personal income tax refunds to be given via a direct deposit to your bank at no added charge. The IRS declares that Direct Deposit is the quickest way to receive returns from the IRS.

You will be asked the following information to request Direct Deposit:

Your Bank’s Routing Number

Don’t use a deposit slip to obtain the number, but rather, rely on a check, or when in doubt, contact your banking institution.

Your Bank Account Number

An indication of whether it is a savings or checking account.

Bank Account Details
What to do if you enter an incorrect account or routing number:

Filing a return using an inaccurate statement or routing number you will have to wait for the government to reject or accept the return prior to submitting a change.

  • If the tax return will be rejected, after the necessary corrections you needed to make, correct the account or routing number then re-submit the tax returns.
  • If the tax return will be accepted,
  • For your protection, you are not allowed make changes on your direct deposit instructions through LocusTax.com.
  • If you mistakenly enter a routing or account number and your given financial institution returns and rejects the deposit, most states, and the IRS will provide a paper check for the portion of your refund. According to the IRS, this can result in delays of your refunds to up to 10 weeks, so it is very important that you double check all your information prior to submission.
  • If you mistakenly enter a routing or account number that is owned by someone else and your given financial institution gets the deposit, you should directly work with the designated institution to get back your funds. For federal filings, if you’ve spoken the financial institution without any results, complete Taxpayer Statement Regarding Refund or IRS Form 3911. The IRS will speak your bank on your behalf to try to recover your refund.
Other notes about Direct Deposit:

You are not allowed to make changes on your direct deposit instructions when your return has been approved.

The account you chose for the Direct Deposit should be in the taxpayer’s and spouse’s name if in a joint/married filing. Few financial institutions will not allow the deposit of joint individual income tax refunds into individual accounts, share draft accounts or check that are “payable through” another institution. Taxpayers must be sure of their institution’s Direct Deposit policy before proceeding.

The Internal Revenue Service allows the taxpayers to split their federal refunds to up to 3 adequate accounts. A qualified account may be savings, checking, or any other account like an individual retirement arrangement (IRA), Archer MSA, health savings account (HSA), CoTreasuryDirect online account, and a Verdell education savings account (ESA).

Taxpayers for federal filings can obtain tax refund status 24 hours after the IRS accepts your tax return by going to the Where’s My Refund tool at IRS.gov/Refunds.

What happens if my return is accepted?
  • If your tax return was ACCEPTED and it shows your REFUND is due, you don’t have to take any action.
  • If your tax return is ACCEPTED and it shows a BALANCE DUE, you can elect to utilize an electronic payment via our software choosing to pay via credit card or checking account, or you can mail a paper check. Regardless of how your payment is transmitted, please verify your payment was accepted by the Government and completed.

Once we have acknowledged your eFiled returns’ approval from the Government, we are not given any further information about the payment or refund process. LocusTax.com is a tax software provider and will not be your tax preparer. For your own protection, the tax agencies will never provide information about your return with us, and accordingly, we will not answer any questions pertaining to the delivery timeframe of your refund.

The Internal Revenue Service advises that you check your refund’s status through the Where’s My Refund application from the www.irs.gov page.  Do note that it might take up to 72 hours for your return information to be posted after it has been approved.  If you haven’t received your return three weeks after your acknowledgment date and if you have other return related inquiries, you may speak to the IRS on their toll-free number at 1-800-829-1040.

If there are paper attachments that are asked to be submitted for your eFiled return, you will have to mail the Form 8453 to the IRS. If you stated that you would attach paper documents in your files, Form 8453 could be printed if you log in to your account and go to Print Completed Forms.

What happens if my return is rejected?

If your tax return was REJECTED, we will let you know immediately via email to log in to your client center for additional details.  Part of what we will discuss to you is;

#1

Rejection Date

#2

Rejection reason

#3

What you have to do to fix the error

#4

Any other next steps or requirements

Most of the rejects are due to mistakes in birth dates, Social Security Numbers (SSNs), or Employer ID Numbers.  Please carefully check all information submitted into our software.  Also, note that if you have had a name change (an example is by marriage) that was not released to the Social Security Administration, these returns will reject.

Paying taxes with a Credit Card

Through I-PAYbyCreditCard, we are able to provide you with an integrated, one-stop file and pay program that many have repeatedly asked for over the years.  This makes it possible for you to pay your tax liability via credit card, and file your return at the same time.

If there are taxes owed, we will notify in choosing a payment method before submitting.  When you choose I-PAYbyCreditCard, you will need to input your card details same as other situations where you have a transaction online. Your card is needed for two separate purposes. Using this service carries with it an additional convenience fee of 3.93% from tax payment to be submitted.

The credit card account statement will show the payment for your taxes as “PAYMENT CONVENIENCE FEE” and “US TREASURY TAX PAYMENT” and the convenience fee payment, respectively.

Once authorized, after paying our service fees then directing us to eFile your tax return then the process continues.

When the tax return is approved, we will then settle the accepted charge, but if the tax return was rejected, the reason for rejection must be fixed. Once fixed, the tax return must be submitted again. If curing the reject and successfully submitting the return is less than seven calendar days, the first authorization is credited as valid. If not, per Internal Revenue Service rules, a fresh and new authorization is required. If the system accepts any approval to be 30 days invalidity, then the next authorization might have a burden on credit limits, for debit cards you must stop the available cash. Once this situation occurs, it’s your responsibility for maintaining the communication and relationship with the financial institution who issued your card to maintain cash or credit limits with the institution. The last authorization date will then be credited as the date of payment by the Internal Revenue Services.

Since you are paying via credit card, it will also be stated to the Internal Revenue Services on your tax ID (SSN, etc.), with your preferred payment amount.

No credit card details will be given to the Internal Revenue Services.

What is Electronic Funds Withdrawal (Direct Debit or ACH Debit)

Direct Debit or Electronic Funds Withdrawal with the acronym, EFW, is the way for paying your tax liabilities directly from the bank account by the banking network, Automated Clearing House (ACH).

For this payment method, you can have the Government debit your bank account for the payment for your taxes while you file your tax return.  Different than other providers, there is no charge dictated by the Government or LocusTax.com on direct debit payments.

When you file a Personal Income Tax Return or Form 1040, Application for Automatic Extension, Form 4868, or the State tax filing with a due balance, while you finalize the filing of your tax return, the System will ask if you choose a paper check, Direct Debit, or Credit Card payment.  If you choose Direct Debit, you will need to input details about your chosen financial institution.  The details can be acquired from your official financial institution, account cards, records, share or check drafts that have the taxpayer’s address and name. It is recommended for you to check with your institution to confirm these details.

You will be asked for the following details to complete the EFW transaction:
  • Amount of Tax Payment
  • Your Bank’s Routing Number
  • Don’t use a deposit slip to obtain the number, but rather, a rely on a check, or when in doubt, contact your banking institution.
  • Your Bank Account Number
  • An indication of whether it is a checking or savings account. Note that a lot of credit unions don’t allow the EFW from a savings account.  Do check with your institution for further information.

Additional Information:

  • Ensure that your chosen financial institution will allow EFW requests from your account. There are credit unions who won’t permit direct debits from shared accounts.
  • The Government confirms receiving the payment. You are recommended that after the tax filing is accepted, you must check your eFile status. On the status of your eFile page, the payment confirmation will show on the screen then you can confirm the payment details.
  • When you submit an EFW authorization, this would authorize the State, US Department of the Treasury, or other Government Agency to change the amount of payment to the Government’s account from the bank.
  • A transaction will appear on your bank’s statement as payment proof. For payments of the IRS, it may appear as “IRS USA Tax Pymt,” or “IRS USA Tax Payment.”
  • If the date of payment asked falls on a bank holiday or a weekend, payment can only be withdrawn on its next business day. In this case, the designated bank might put a hold on your funds and credit it as a pending transaction.
  • Amount of payment will be deducted as a single transaction. No partial or recurring withdrawals shall be made.

Questions, Cancellations, and Errors:

Once the tax return is approved, you cannot change your payment details such like account information, date, or amount. You have to call the government agency directly in case you need to have anything changed.

In case you financial institution cannot process the payment, you are responsible for making payment arrangements, and any other related fees incurred such as interests and penalties.

For federal payment requests, you can contact the IRS eFile Payment Services at 1-888-353-4537. They handle issues on stolen or lost bank account numbers, unauthorized transactions, closed bank accounts, payment cancellations, and other inquiries. The IRS recommends to wait 7 to 10 days after the tax return was approved before you contact them regarding payment-related inquiries.

Cancellation requests can only be received until 11:59 PM EST 2 business days before the scheduled date of payment.

If the tax payment is returned by the financial institution (e.g. insufficient funds, incorrect account information, closed account, etc.) then the IRS will mail to your registered address a letter of notification bearing details regarding the unsuccessful payment and the available alternative payment options. Dial 1-888-353-4537 for any inquiries regarding the letter.

Immediately contact the IRS at 1-800-829-1040 if there’s an error with the withdrawn amount.

If the error in the payment amount was made by the Treasury, then the Treasury will give back any improperly transferred funds.

For State payment issues, contact your State revenue agency.

What is Electronic Postmark (ePostmark)?

LocusTax.com issues an electronic postmark (epostmark) for all completed tax returns filed in the system. Our system’s clock follows Pacific Standard Time in the United States and is the basis of the ePostmarks. You should be able to adjust the ePostmark to the timezone of your current residence to show the official time of your ePostmark.

The ePostmark receipt has a timestamp that can serve as proof that the taxpayer filed in a timely manner. The date on the ePostmark receipt will be considered as the filing date if the return is filed on or before the due date. The tax return is received in the Internal Revenue Services after the given due for filing with the similar postmark given by the post for an item sent.

You must adhere to the requirements for return signing before you re-submit a rejected tax file return for the ePostmark date to be accepted as the filing date. If the ePostmark is given past the due date then the official IRS date of receipt becomes the date of tax return filing, not the ePostmark date.

ePostmark shows the agencies that when a fileable, completed return is received and perfected by us, we’ll be considering the tax return is received only when the tax return information entry process completes, the fee payment, if needed, has been made, and the filing is sent for eFiling by the user.

Once the ePostmark is generated, Locustax.com will maintain it as the recorded ePostmark. If your tax return is not accepted, a corrected return must be sent together with a similar ePostmark within a given period of time. If the allowed time for re-sending a corrected tax return exceeds the allowed period of normal filing then a new ePostmark will be given and it will replace the old ePostmark recorded in our system. The filing might be considered as late and might incur interests and penalties in the absence of a tax extension.

About our Software and Services

LocusTax.com is a fast, safe, and competitively-priced tax submission service.

Some of the services we provide include:

  • eFile or electronic filing- We file taxes electronically for your convenience
  • If you choose Direct Deposit, a refund will be transferred directly to your bank account. You can pay any due balances while you file your tax return via Electronic Withdrawal Funds (EFW) or through the iPAYbyCreditCard.
  • Refund Settlement Products/Banks and Financial Institution Products are offered to allow return construction charges to be debited from the tax refund.

We’ll be processing information returns such as a whole host of 1099s and W-2s. These will be eFiled to the SSA or Social Security Administration and the Internal Revenue Services, respectively.

Once the tax return is approved, you’ll be able to download the copies of your tax return at no fee to you if it was prepared for a fee.

To use our systems and services, a fee will be charged. This can be paid via Mastercard, Visa, American Express and Discover.

You may permit us to debit it off your refund when you apply with a financial institution product or bank, given that this is available in your jurisdiction or state.

You may reach us by emailing us at support [at] locustax.com

About Bank or Refund Settlement Products

Financial Institution, Bank, or Refund Settlement Products provide added services to taxpayers to assist them in receiving their refunds. Another benefit is providing taxpayers the ability to settle fees from the refunds.

 

The application for products is received and this is passed over to the provider, a financial bank or institution. We are not affiliated with these providers other than them receiving the application to their products through our site LocusTax.com with an appropriate service charge. It’s not mandatory to use these providers but they can be used to claim a specific level of refund. There might be various service levels available from the providers.

The products are available through Refundo, Refund Advantage, Santa Barbara Tax Products Group (TPG), and River City Bank.

Self Selected PIN

We offer additional convenience when you eFile a purely Paperless Federal Tax return. The IRS makes it easier for all qualified taxpayers to sign electronically (eSign) their returns when they enter a 5-digit self-selected numerical pin with a part of the past year’s tax information, which will be referred to as the “shared secret”. This consists of the prior year’s adjusted income in gross amounts with a tolerance of -/+ $1 (1 dollar). For joint filers, details must be included for both regardless if the information is the same. The system is designed to automatically generate these information for clients that filed their taxes through LocusTax.com for the previous year.

Remember that the details will have to be the same as how it was shown in the original file and approved return. If the return was amended and modified after, the original numbers would still be required. Also, the past years’ PINs can be given as “shared secrets”.

WARNING

  • The Internal Revenue Services WILL review the details you’ll be submitting for the previous year amount/s of its “Shared Secret” (the AGI). If the amount/s aren’t in the tolerances specified, your tax return will be REJECTED and you will be asked to resubmit your return.
  • IMPORTANT: If you’re not sure of the amount/s, call the Internal Revenue Services and ask to issue a PIN to be used associated for your eFile.
  • A 5-digit eFile PIN shouldn’t be mixed with the 6-digit Identity Protection PIN given by the Internal Revenue Services in some situations.