1. It’s easier. Tax preparation software prefills a lot of information (especially if you get your W2 online). It’s quicker to punch in numbers on your keyboard than to try to write it all out legibly.

2. Fewer mistakes. Again, tax preparation software makes it easier by doing all the math for you. Fewer mistakes mean a return that is processed faster.

3. No missing tax breaks. The tax program you use will be loaded with all the new tax rules and allowable deductions, whereas some IRS forms this year have some deduction lines missing and taxpayers who don’t know about those deductions can miss some important tax savings.

4. It’s faster. The IRS estimates that it processes electronically-filed tax returns in half the time it takes to process paper returns.

Buying a good tax preparation software might save you money and pay for itself. If your adjusted gross income is less than $52,000, you can use the IRS’s Free File service by choosing an e-file partner company from the IRS website. Electing for direct deposit saves time too and gets your refund to you even faster.

If you plan to file for deductions for state sales taxes, college tuition and classroom supplies you may have to wait. The 2006 IRS tax forms don’t have lines for those deductions.

The 109th Congress extended those deductions at the last minute but they were not in time to make it into the tax forms printed up by the IRS.

To claim these deductions, go to the IRS website for instructions. If you e-file, the IRS says the online forms should all be updated to include these deductions. However, the IRS doesn’t plan on processing forms claiming those deductions until after Feb 3, so there’s no rush to file yet.

The IRS is making it easier for some who owe delinquent taxes to make payment arrangements by making the application available online.

The OPA (Online Payment Agreement) is now available at the IRS website and allows taxpayers to file a request for a payment arrangement and receive immediate notification of approval.

Taxpayers who wish to use this tool must have already filed all required tax returns and have the following information available:

* Balance due notice from the IRS.

* Social Security number or Individual Taxpayer Identification Number.

* Personal identification number, which can be established online using the caller identification number from the balance due notice.

Three payment options are available when applying online:

* Pay in full — Taxpayers who pay within 10 days save interest and penalties.

* Short-term extension — Receive a short-term extension of up to 120 days. No fee is charged, but additional penalties and interest will accrue.

* Monthly payment plan — A $43 user fee will be added to the amount owed, and interest and penalty will continue to accrue on the unpaid balance.

The application is available Monday through Friday from 6 a.m. to 12:30 a.m., Saturday from 6 a.m. to 10 p.m. and Sunday from 4 p.m. to midnight (all are Eastern Time).

Online Payment Agreement Application