E-filing mandate

[DonPriebe]

Maybe part of the IRS definition of "error" is that it gets noticed only after IRS acceptance or receipt in the mail?

I am a volunteer in the AARP/TCE program. Every year we get feedback from the IRS on how well each of our sites did - number of returns filed, percentage e-filed, percentage of errors, etc. The errors that the IRS counts for these statistics are the number of e-file rejects -- which may or may not be actual errors. Better QC at the preparation site can reduce the typo errors (wrong SSN, EIN, etc.), but these are easily fixed and resubmitted from the copies of the documents that we hold until acceptance, and never hit the IRS mainframe anyway, so cause no harm to the IRS processing. The other type of 'errors' (conflicts with previously filed returns) cannot be fixed and resubmitted and may not actually be errors in our returns. And real errors like missing W2s and 1099s do not cause rejects and so are never counted.

error (n) - a somewhat meaningless term that's easy to count and used in statistical reports.

[jimmcg]

While in NC last week I had dinner with a distinguished and knowledgeable CPA friend. He told me he does not do electronic filing for his clients and is considering getting out of the tax business if it becomes necessary next year.

This is not someone who is computer-ignorant, or someone too backward to learn. On the contrary, an amazingly sharp guy. He has other sources of income, and I would think his refusal is based on a fear of electronic proliferation of client data, or electronic storage of bank account numbers and related information.

If his clientele is not allowed to opt out, our profession (and the IRS) will lose someone of value who produces complicated returns virtually error-free. (He does use software, just no e-file).

Tax return preparation is not a large part of my tax consulting business nor is it the most profitable part. If it comes to mandatory e filing I would simply opt out of the additional administrative burden and devote my time to the more profitable areas of tax planning and representation. Simply put it would be an economic decision based on my available business time vs. which time endeavors are more profitable.

[Lion]

Bb

Hey, Bart, you only have to enter four (?) characters in a field for e-filing, and they can be almost any characters. I use UNKNOWN when I can't read a W-2 address or am pressed for time. My software fills in UNKNOWN automatically when I type U. The software fills in the client info even for new clients by the time I'm on the W-2s, and 1099s. And, the software fills in the FICA and MM tax fields. So, I only have to watch the EINs. And, when employers repeat, the software recognizes them. Still takes much less time than waiting for another copy to roll off the printer and assembling it and making sure I have the correct envelope and stapling the W-2s on and flagging the signature line and....

[taxxcpa]

E-filing

For several years the IRS would sometimes reject an e-filed return for no valid reason. This no longer seems to happen, so, finally, I began e-filing almost all returns last year.
Almost all of my returns are repeat clients, so I don't have to fill in most of the W-2 information that is required for a new client or for an existing client with a new employer.

However, if I had a lot of drop-in non-repeat business, I would not like to be forced to e-file unless I charged extra for e-filing. It is only easier in the years after entering all the data.

Also, with new clients there is some risk of incorrect SSNs or other such information which would cause rejects.

Despite the drawbacks, I now prefer to e-file. It cuts out printing the IRS copy of the return and preparing envelopes or looking up mailing addresses. In some cases, I don't even print a paper copy at all, and send the client a PDF and keep a pdf for my file.

[Black Bart]

Awwww...

Hey, Bart, you only have to enter four (?) characters in a field for e-filing, and they can be almost any characters. I use UNKNOWN when I can't read a W-2 address or am pressed for time. My software fills in UNKNOWN automatically when I type U. The software fills in the client info even for new clients by the time I'm on the W-2s, and 1099s. And, the software fills in the FICA and MM tax fields. So, I only have to watch the EINs. And, when employers repeat, the software recognizes them. Still takes much less time than waiting for another copy to roll off the printer and assembling it and making sure I have the correct envelope and stapling the W-2s on and flagging the signature line and....

(erchess) I find e-filing personally convenient...

(S T) I also like e-file as it makes it easier for everyone...

(veritas) I like the e-file option...

the trouble with all you guys is you're just too cheerful, reasonable, and understanding. It's much more satisfying to be a sour old grouch dragged kicking and screaming into the new-fangled 21st century.

Still, these things usually get worse........

[Bees Knees]

It's much more satisfying to be a sour old grouch dragged kicking and screaming into the new-fangled 21st century.

Still, these things usually get worse........

I'll give you some ammunition to be grumpy about. Right after the new law was passed that mandates e-filing, IRS just announced that First Time Homebuyer Credit claims will not be allowed on an e-filed return. You have to file a paper return for those.

IRS wants us to e-file…then they say they can’t handle it. Go figure.