Instructions For Form 1040nr-Ez - U.s. Income Tax Return For Certain Nonresident Aliens With No Dependents - 2005 Page 13

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number of these taxpayers also take the time to print out their return and mail it, rather than e-
file. As a group, taxpayers using a tax professional filed the most complex returns. Although
virtually all preparers use software, many still send returns in the mail, despite the benefits of e-
file (faster refunds, assurance of accuracy when filing, and less chance of getting an error notice
from IRS).
Why Does It Take Longer To Prepare a Tax Return With Software?
The new estimates indicate that taxpayers using software spend more time preparing their
return than those without software. The reasons for this unexpected result are: (1) more
complex returns tend to be prepared using tax software; (2) time is spent initially learning about
the software, uploading the software, and adding other information into the file, particularly the
first year the taxpayer uses software; (3) software users may explore alternative tax scenarios to
reduce their liability and engage in tax planning while preparing their return; and (4) not all
returns prepared with software are e-filed -- many are printed and mailed to the IRS.
Table 1 — Estimated Preparation Times and Out-of-Pocket Expenses
By Return Preparation Method
Self-Prepared Without Tax Software
Self-Prepared With Tax Software
Prepared by Paid Professional
Hours
Costs
Hours
Costs
Hours
Costs
10.6
$4
15.4
$31
11.7
$113
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