Sigma Tax Pro Advises Tax Preparers Using Professional Tax Software Of IRS E-Filing Requirements
As any tax professional knows it can take up to 45 days for the IRS to authorize new e-file provider applications. The 2014 tax season is right around the corner and time is running out to apply.
The IRS confirms that nearly 80% of all individual federal returns are now e-filed. Anyone wishing to take advantage of the e-file program, which is now required for most tax professionals, must apply to become an Authorized IRS e-file Provider. Sigma Tax Pro recommends that any tax professional wishing to electronically file for the upcoming tax season should complete their e-file application by December 24th. If the application process takes the full 45 days then the approval would be received by February 7th, already into the beginning of tax season.
The new guidelines state that any tax professional who anticipates preparing and filing 11 or more forms 1040, 1040A, 1040EZ and 1041 during a calendar year must use IRS e-file. It is possible to request a waiver from this requirement by submitting IRS Form 8944 but this form must be submitted by February 15 of the current tax season. Waivers can only be obtained if the individual can demonstrate that an undue hardship would be imposed by the requirement to e-file.
Tax professionals wishing to complete the e-file provider application should be aware of the following IRS requirements: adjusted gross income from the prior tax year; a description of the type of services provided to taxpayers; a fingerprint card for every principal and responsible official in the company who is not an attorney, CPA or enrolled agent; and a suitability check for each principal and responsible official in the office. Personal information is also required from all principals in the company including name, address, social security number and citizenship status. All requirements must be met for the IRS to approve any e-file provider applications.
Sigma Tax Pro provides a full range of essential services for tax preparers using professional tax software. This includes industry leading software solutions as well as technical support, tax preparation support and client retention strategies. The Audit Protection program is offered to new and existing clients, it can also generate fee income for tax professionals.