The IRS yesterday (IR-2007-26) urged taxpayers to file their 2006 tax returns electronically in order to take advantage of the tax law changes enacted in December:

After completing planned updates to its systems to accommodate the “extender” changes, the IRS began processing on Saturday both e-file and paper tax returns claiming deductions for state and local sales taxes, higher education tuition and fees, and educator expenses. The IRS emphasized that using e-file is the easiest and most accurate way to file a return, including any return claiming extender-related benefits. Makers of tax-preparation software have updated their products to incorporate these reinstated tax breaks. “As we always do, we encourage taxpayers who think they may claim these deductions to file electronically,” said IRS Commissioner Mark W. Everson. “They will get their refunds in half the time, and e-file greatly reduces the chance for making an error compared to using a paper return.”