IRS Tax News: e-File Requirement and IRS Letters and Visits to Tax Preparers
e-File Requirement for Many Paid Tax Preparers
Beginning the first day of this year, many paid tax preparers will be required to electronically file returns for individuals, trusts, and estates. This new law will be phased in over 2011 and 2012 and applies in the following scenarios:
- January 1, 2011— for preparers who anticipate filing 100 or more Forms 1040, 1040A, 1040EZ and 1041 during the year; or
- January 1, 2012— for preparers who anticipate filing 11 or more 1040, 1040A, 1040EZ and 1041 during the year.
This new law requires firms to anticipate the number of returns they will reasonably file in the upcoming two years. If they assume that number to be 100 or more in 2011 and/or 2012, every member of the firm must electronically file all the returns they prepare. As noted in the IRS press release, “This is true even if a member prepares and files fewer than the threshold on an individual basis.” If clients so desire, they can file paper returns independently.
In order to file electronically using IRS e-file, you must become an authorized e-file provider by doing the following:
- Creating an IRS e-Services Account
- Submitting an application
- Passing a Suitability Check
Some tax preparers may be eligible for a hardship waiver from the new e-file requirement.
For more information, visit the official IRS website.
2011 Tax Filing Season: IRS Letter and Visits to Tax Preparers
In December we reported that the IRS had distributed more than 10,000 letters to paid tax preparers reminding them of the importance of filling accurate returns for their clients. Included in the letter was an enclosure that detailed the responsibilities and consequences in filing inaccurate returns.
These letters were sent to a selection of preparers who submit a considerable number of returns using Schedules A, C or E. According to the IRS press release, “The selection of preparers who received the letters is based on filters used to identify those preparers that may need assistance in meeting their required responsibilities.”
The press release also noted that throughout the 2011 filing season, IRS representatives will visit about 2,500 tax return preparers who received these letters. In that setting, their responsibilities as a return preparer will be discussed; they will also verify their compliance with existing return preparer requirements.
This effort demonstrates the IRS’s continued commitment to the improved accuracy of filed returns and heightened awareness of preparer accountability.
Universal Helps Tax Preparers be in Compliance
Consider Universal your source in preparing for the new IRS mandatory testing and continued tax education requirements.
Our online tax course, the Professional Tax Preparer program, is designed to help and includes the following:
- Informative video instruction
- Full 1040 training
- Full business return (1065, 1120, 1120S) training
- 6 months of follow-up support from expert tax preparers
Many programs will lecture you on tax law and preparation practices, but Universal’s program is much more effective because it provides you with the hands-on practice that will perfect your skills. Theory is taught as guiding principles, but the focus is on actually doing taxes to gain proficiency.
Ensure that you’re in compliance with the new IRS tax preparer regulations. Improve your competitive advantage and secure your professional standing in the tax industry while building your home-based tax business. Call Universal at 1-877-833-7909 today and enroll in the Professional Tax Preparer Program.
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Resources
–. “IRS Letters and Visits to Return Preparers – Filing Season 2011.” 7 June 2011 www.irs.gov
–. “Many Tax Return Preparers Must Use IRS e-file Beginning in 2011.” 29 June 2011 www.irs.gov
