E-file 2011 Taxes

Current E-File requirements

Every year more tax returns are filed electronically. It can help both the tax preparers and clients. Many times there are benefits like increased efficiency, immediate acceptance (usually) by the IRS and possibly faster refunds!

Every year it seems that e-file requirements change.

If you are an e-file provider you need to make sure you acquire your Electronic Filing Identification Number (EFIN). This can take awhile to process; so don’t procrastinate if you plan on e-filing for clients.

Starting on the first day of 2012, preparers who file 11 or more Federal 1040 or 1041 returns are required to use e-file for all the 1040 and 1041 returns. I wonder how that will affect clients who still don’t like to e-file? Clients can request an e-file waiver with Form 8944.Not many e-filers perform less than 11 tax returns. The previous year required more than 100. Also, if your income is $58,000 or less, the e-file is free.

How about E-organizers? Has anyone started using those? Instead of sending your client a big stack of paper with questions they fill out and mail back to you, they fill out an organizer online and send it back as a secure file. Some programs will take that data and automatically input it for the preparer, increasing efficiency and saving time. Anyone can input numbers into professional tax software and that is what this does for you. It is making adjustments to get the correct results that clients should be paying for!