The IRS is informing professionals and accounting firms that they need to get EFINs (Electronic Filing Identification Numbers) in order to be compliant for the 2012 e-filing requirements (if they haven’t already received an EFIN).
Beginning in January of 2012, paid preparers who will be preparing and filing extra than eleven 1040 or 1041 forms must e-file with the IRS. Persons and businesses who file their own taxes still have the choice of filing their returns on paper.
Tax preparers must make an e-services account in order to be an authorized IRS e-filer. They will have to send an EFIN request and pass the essential tests. The procedure takes at least 45 days. Individuals and tax firms only require one EFIN.
Next year’s necessities are the second and last part of a law that was created to help e-filing becomes the main technique of tax filing for individuals, trusts and estates. For 2011, the e-filing obligation was meant for paid preparers and tax firms who filed at least 100 tax returns. In 2011, the rate for returns that were sent via e-filing augmented by more than 12%.
80% of tax returns are filed online and the IRS has estimated that almost 1 billion tax returns were filed electronically securely and strongly since e-filing began in 1990.
Professional tax preparers can see how the procedure works on www.irs.gov at “Become an Authorized e-file Provider” or by accessing the FAQ part.
If this new condition causes hardship for preparers, they may request a waiver for one year by sending an 8894 Form (“Preparer e-file Hardship Waiver Request”).
If a customer asks for a paper return is sent to the IRS, the preparer must send an 8948 Form “Preparer Explanation for Not Filing Electronically” with the tax return. All forms must be kept with the preparers records.
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