I e-file every year - both Fed and State - have for many years now.  I love it, refund gets here very quickly, direct deposit into the checking account.

I buy Turbo Tax and file through them, very easy and convenient, nothing to mail.

I love it, have been doing it for the last couple of years.  Makes for a reallly fast refund.  Won't be able to this year, to complicated now that I have the LLC.

Get on the IRS website and they have links to several companies that do e-file.  Some are even free if you are under a certain salary level.

You should buy a tax program like Turbo Tax.  There are other brands but I've always used them.  You'll need to buy Federal and State packages, probably looking at less than $50 in total for both, which is deductible when you file.

Once you have the software, go through the step-by-step instructions or just fill out the forms, whichever you prefer.  At the end of the process it will walk you through filing electronically.  You will have to pay another fee for filing, around $15-$20 if you do both Fed and state, IIRC.  You will then get confirmation from the taxing authorities within 48 hours that your returns were either accepted or rejected.  (its rare that one is rejected, usually a screw up on something you entered)

Once accepted, expect to see the deposit in your account within 2 weeks.

If you go with Turbo Tax, it really is painfully simple to do.  A blind, retarded monkey could do it.  (just go read DU for all the positive feedback they give it!)

Also, as stated above, you get some coverage if you have any problems with IRS after you file.  Even if you get audited at random, you get some support from Turbo Tax.