Companies using e-filing for their federal tax returns set a new record in ’08.

Just under 2 million corporate and partnership income tax returns were filed electronically — more than 50% more than the prior year.

Large partnerships using e-filing increased a whopping 156% over ’07.

It’s easy to see why more companies are jumping on the bandwagon: Electronically filing your corporate tax returns and related information returns can reduce errors. And for some forms, like the 1099-MISC, extended deadlines make it more convenient to use the e-file option.

Which filing methods do you use — and why? Share your perspective in the comments.

Tags: E-filing, IRS, Tax compliance, Technology