Do you remember the days when you used to collect, compile and store hundreds of paperwork and stand in line to file your taxes? Yes, such a time existed in the not-so-recent-past. Just ask your parents or grandparents and they will attest to the same.
In the last few years, technological advancements have taken place aiding the process of filing taxes. This has not only contributed to the entire process becoming far simpler but also encouraged people to pay taxes themselves.
In this article, we are going to look at some major ways where technology has helped in transforming the tax collection process.
Advantages of taking the Tax Process Online and making it Digitised for Governments
The benefits of using software, automation, and technology are not only beneficial for the citizens or individuals. It is also very advantageous for the government authorities.
This is because increasing digitization means that maintaining records has become far easier. It has also resulted in identifying patterns, understanding violators, and sending notices to people where discrepancies have been reported.
Any big country is dependent on taxes, income taxes, and taxes on sales of goods and services for its revenues. Using technology helps in improving efficiency, streamlines processes, and find out wilful defaulters.
How Citizens are Benefiting from Technology in the Taxation Process?
- Calculating Tax Brackets-
There are a number of tools that the IRS provides to citizens that can help them calculate the tax brackets they belong to and should pay according to. All you need to do is enter some important details in the fields, including your yearly income, SSN, and other relevant information. The software calculates the same and shows you which tax bracket you belong in.
- Online Uploads Saves Times-
Remember the hundreds of paperwork we mentioned in the opening sections of the article. Now all you need to do is scan the copies on your smartphone and upload the same. Data has shown that an average person needs just 90 minutes of time in a year to complete and file their taxes with the government. Technology has enabled us to save time when filing taxes.
- A plethora of Payment Options-
With Fintech innovations leading from the front in 2020, there are now on offer multiple options when it comes to making payments. You can choose from Net Banking, Credit Cards, debit Cards, Digital Wallets and even mailing a cheque. Once you use digital payments for filing taxes, you immediately get the receipt and everything by mail.
- Push Notifications do not allow anyone to forget the dates-
Dates for filing taxes keep on shifting. The last year saw the most massive shift because of the pandemic. Given how busy we are with our lives, even the best among us can miss the dates for filing taxes if not informed. The IRS ensures that you keep receiving push notifications is you have signed up online on the website. This ensures you do not miss out on the timelines.
- Complicated Tax-Related Questions are easily answered-
Many leading firms are working on AI and ML-enabled chatbots that are capable of handling a range of customer issues and queries. If you are in doubt regarding certain critical elements, you can always ask your question to the chatbot. They have been designed and programmed in a manner where they will be able to satisfy all your doubts. Get free tips on how to use the tax software from https://taxfyle.com/blog/best-tax-software/.
The Final Word
There is no doubt that technology has made the process of filing taxes incredibly easy. With more and more third-party software and applications that can help in accounting and other calculations, all you need is all your papers in order, a laptop or a smartphone, and an internet connection to pay your taxes for the entire year or a quarter.
