Do you require mandatory E-filing?

[DaveO]

We efile by default but don't charge extra for paper if needed or by preference of the client. Some where skeptical at first but came around when they didn't have to mail the return.

[tilt53]

We started efiling all returns after 9/11 when the IRS announced that they were warehousing the returns to check for anthrax. Shortly after that CA made it mandatory so we were ahead of the game.

Now the only time we don't efile is if there is something that prevents it or the client refuses. We charge $10 for paper filing at customer request.

[Mike Mac]

Becky

You are correct about having to file over 100 returns before hitting that $5.00 paper-filing charge by MN (It is a self-regulated fee in the hands of us. I asked the Dept of Revenue how much revenue the get from the charge and it is extremely small).

My base charge for doing the Prop Tax Refunds is $25 and have some smaller charges in situations similar to what you describe. You can file those up to one year back so four or five years ago most of the ones I was doing were actually from the prior tax season. As you know, you need the 2009 payable statements to plug in to the 2008 Property Tax Refund (always seemed stange) and most counties don't send the statements out until the tax season is almost over.

About three years ago, I changed our business procedure on those and my wife and I now download the statements via the internet once they are released, check to see if they qualify, mail out their copy if qualifed, and efile the MP-1 once they send us a check. It beats having to go back to the prior year returns annually. I just looked back and we earned just over $2,600 in income just doing those in 2008.

[taxxcpa]

E-filing

I did not go for e-filing until this year. When I used ATX, they would update between the time I did a return and the time I got the Form 8879 and I had to go through a tedious update to make it e-fillable.
I switched to Drake which is easy to update and have never had an e-filing problem, so now I e-file every return I can. Only about three client did not want to e-file. And just a few object to direct deposit or bank drafts.

I had never e-filed anything but forms 1040 before, but now I e-file all 1120s, 1120Ss, 1065s and 1041s with no problems.

I don't worry about the paper cost, but the postage cost is less and I don't have to worry about tax returns getting lost in the mail (which happened last year on one return),.

[mblatour]

Mike,

About three years ago, I changed our business procedure on those and my wife and I now download the statements via the internet once they are released, check to see if they qualify, mail out their copy if qualifed, and efile the MP-1 once they send us a check. It beats having to go back to the prior year returns annually. I just looked back and we earned just over $2,600 in income just doing those in 2008.

I'm curious about your procedure of doing the property tax returns. How/where do you download the statements? I didn't know that was an option. That would sure be slick. I've already received a half dozen property tax statement copies in the mail this week from clients who've received theirs. My clients send the copy and a check for the amount I charge. I prepare the return, E-File it and then mail them their copy of the finished return. Seems to work out all right.

In fact, I just filed ours a few days ago. We built a new house (ourselves) and we got hit HARD with taxes. First time ever that we've qualified for a refund. Next year they'll assess us with the other 50% of the new house value. I guess that means we'll get an even bigger refund. Which is actually of no comfort to me .

If you wouldn't mind filling me in our how you go about your process I'd really appreciate it. Thanks in advance!

Becky

[AZ-Tax]

I give a discount for those that e-file

You would be surprised if you either gave a discount for e-filing or charged more for paper return, how many of your customers would change their mind..

[taxmom34]

i got off the subject earlier. but, with turbotax, they were charging for each efile, so i would ask clients if they wanted to efile, i had one client who did it two years and i used her credit card for the fee. but then she said no. after a few years i stopped asking, but by then most of my clients were doing direct deposit, i really pushed that as being safer and faster. i had very few with balance due. now to close, i used the efile myself every year and didn't mind paying the $12 and $20 to do it. just couldn't convince my clients to do it too.

[oceanlovin'ea]

Always efile

I have always e-filed returns for my clients. I just say that I will electronically file the return for them. That means they don't have to mail anything in. I tell them that by having their refund directly deposited in a checking or savings account, they will get their refund about 1 week quicker.

I have a couple of people that want the check mailed to them, but most like the direct deposit.

I even have those now that will let IRS take the amount due from their account on 4/15.

I don't even talk about paper returns. I haven't had anyone refuse to do electronic filing.

So far this year I have only had one rejection.

Linda

[S T]

Well Not Mandatory

I don't make it mandatory, but clients have come to love the fact they don't have to mail the actual returns. Also due to confirmation acceptance, then both the client and I know the return has been accepted.

So many advantages, fewer disadvantages for both myself as preparer and the client.

I hesitated so many years ago, but now I believe I am glad that I finally converted most all to electronic. The client still has a choice, but I do prefer the electronic file as opposed to paper file.

cost wise, for now, my EF charges from software are -0- it has been free the last few years, and with rising postal costs, I have saved some costs on the mailing side.

Sandy

[mblatour]

Thank you....

for all of the replies. Such varied responses. We all do what works best for us, but it is nice to know what others are doing. It sometimes helps us improve our own practice. Good luck to all as we wrap up yet another tax season!

Becky

[MRPLOW]

I also charge $30 for E-File.

I do this to keep my initial fee low and then add this on standard to all new returns.

I E-file about 50% and going up about 10% per year.




As far as making copies, I have used commercial copier, so paper and toner costs are less then $1 total per return.

[AJsTax]

Interesting subject

I find this to be a very interesting subject. We have a discussion at the office about this often. At Home I try to Efile everyone without extra charge. At the office I have worked in the past four seasons we efile a small portion. Of the 1500+ 1040s so far this year we have efiled a little over 200. And he charges $35 extra to efile (50 for MFS). I think that stops a lot of them. But it does take more time to efile with Lacerte compared to the easiest way to paper file. If you dont put in all the numbers and addresses from w-2s, 1099s, etc you can go a lot faster. and to send and check efiles and mess with the signatures on the 8879s takes time. And is always a hassle to get both signatures. Paper filed returns are handed to the clients and they are on their own and out of our way. We do probably 75% dropoffs.
Ohio is going to require efile for over 100 returns in 2 years so that will change the way of doing things.
I know from experience in several offices that a lot of it is how the clients are trained.

[Roberts]

E-filing is cheaper for me, easier and FAR quicker. I'm confused why I would charge more for my benefit. We'll do about 5 mail returns. Every client that does mailing is over 70 years of age and just can't help themselves. I've already shown 2 of them that next year we'll efile to make their lives easier.

[tilt53]

I found that the first year we pushed efiling, it did take a little more time to enter all the EINs and addresses. But now in subsequent years, the majority of the people are still at the same jobs and the extra imputting is minimal. Just a quick glance at the existing information to see that it hasn't changed is almost all that is required. If there is a new W-2 or 1099, it's not a problem. Depending on your software (mine is ProSeries) there may be an employer database that has already stored most of the information. So if you have a W-2 or 1099 that has already been entered, all you have to do is enter the EIN and the rest of the information populates the fields. Nice.

[thomtax]

E-filing is cheaper for me, easier and FAR quicker. I'm confused why I would charge more for my benefit. We'll do about 5 mail returns. Every client that does mailing is over 70 years of age and just can't help themselves. I've already shown 2 of them that next year we'll efile to make their lives easier.

Not sure, but I think the original start of charging for efile was to offset the cost of buying computers, etc. and also you usually had to pay a transmission fee to someone. Or if you filed directly, you had the hassle of getting set up with IRS. Now computers are much less expensive, some software companies take care of the transmitting to IRS at no extra charge and IMO the whole situation has turned around.

LT