E-file (an acronym for "electronically filed") refers to a program by the Internal Revenue Service to have at least 80% of all tax returns filed separately.
E-filed tax returns provide IRS with digital information. IRS transcribes select data from paper returns to convert it to a digital format. IRS’s policy is to post the same information from electronic and paper returns to its databases. Only information posted to its databases is readily available for use in IRS’s enforcement programs and audit selections, which means that similar paper and electronic returns have equal chances of being selected for audit.