Tools: Filing taxes online

(CNN) -- The deadline to file your taxes is drawing near. Whether it's doing it the old-fashioned way -- using a tax preparer -- or filing via the Internet, April 16 is right around the corner.

This year, the Internal Revenue Service estimates, 42 million people will file their taxes electronically. That's up from 35 million last year. CNN's Natalie Pawelski spoke with Terry Lutes, IRS Director of Electronic Tax Administration, to get some tips on filing your taxes online.

Q: What do people need to do to be ready before they even log on?

Lutes: Before you prepare your tax return, you obviously need all the requisite information that we are used to -- W-2s, 1098, 1099 for any dividend interest earnings -- When you first go to the IRS web site, which is simply www.irs.gov

Q: You guys are trying to make this look viewer-friendly?

Lutes: We're trying to make it look viewer-friendly. We try and get some key information on the front: excise taxes would affect businesses, and then also obviously during the filing season we try to emphasize electronic filing. We're actually hiring people at the IRS if you're looking for a job. If you've still got some questions about what you need, what you can deduct, we've also got a section called "Tax Regulations in English."

Q: Uh oh, " Liabilities Assumed in Certain Corporate Transactions" -- that doesn't look like plain English to me.

Lutes: That doesn't sound like English, but if you need that, you'll know what that means. It means you've got more money than I've got.

Q: Can you just fill out forms here or can you actually file them? That's something I don't quite understand.

Lutes: No. You cannot, and that's an important distinction. We provide the forms. If you pull up one of these forms you can print the form out; you can request that forms or publications be mailed to you or faxed to you. If you want to file electronically however, what you need to do is you have to use other software. We don't actually have tax preparation software. All we have are the forms. You can either go to the software store and buy software, or you can go onto the Web and download software, and some companies actually offer a Web software where you actually work on their Web site, prepare the return and then send it to us electronically.

Q: Oh, there's Complete Tax, H&R Block, Kiplinger, Online 1040A, Quicken, TaxAct, Tax Brain, Tax Action, Tax Slayer ... Why is the IRS interested in encouraging electronic returns?

Lutes: There are a couple of reasons. Many people assume that it is easier for us, that it reduces our costs. And it's true, that it does. But that's really not the big advantage. The reason is because of the combination of the features of the software and the features of our electronic filing system itself we can assure a much more accurate return, by the time the IRS has accepted it. The software does a variety of tax checks. Much of the software provides various kinds of advice and tips for the taxpayer as they are filing.

Q: Does filing electronically make any difference as far as how fast y'all give me some of my money back?

Lutes: It makes quite a bit of difference. That's one of the other advantages. If you file the return electronically, and you request a direct deposit, directly into your bank account, you'll get your refund an average of 14 days, as opposed to four to five weeks

Q: What about the dreaded audit? If you file electronically, are you more likely, or less likely to get audited?

Lutes: It clearly does not increase your chances of being audited.

Q: You promise?

Lutes: Yes.

Q: What about security? I mean, I think people really are nervous about putting all this financial information and their Social Security number out there on the Web

Lutes: We've been doing this for 15 years now, going back to 1986, and we've never really had an incident where folks have been able to intercept returns, or get into our systems and access those returns. We constantly are reviewing those processes. And when we find weaknesses, we address those weaknesses as quickly as we can.

Q: You guys have a tough image to sell. Let's face it, nobody wants to pay their taxes and the IRS hasn't always had the best image, but it seems like you are trying to be sort of friendly.

Lutes: There's a difference between being well-known and being popular.

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