mandatory efiling

[FEDUKE404]

Ever LOOK AT a Form 8879?

I'm sitting here in total amazement at some of the questions here about Form 8879.

Suggest you get a copy of the form and quickly review Part I. Included there is AGI, total tax, total tax withheld, and amount due/refund.

The comment about "having your client sign a blank tax return" was quite correct.

The Form 8879 cannot realistically be prepared until the actual tax return has been completed. (Think of it as a summary sheet that authorizes an ERO to efile the return.) Yes, there is a wee bit of wiggle room for "changes" but not much.

Also, many states have their own (additional) form comparable to the Form 8879 and many of those require additional information that can only come from a completed tax return.

Tax software will generally complete the form(s) without too much effort. Give one to the client, and keep a signed copy on file if the IRS ever wants to see it. And you better believe the tax return never gets transmitted until I have the form in hand.

FE

[taxmandan]

I have them sign when they pick up the return. I actually go over the return with them!!! that way I know they understand what's on it. Its part of the service I provide, that the tax-in-a-box programs don't. And offer planning & other ideas at the same time. And they pay then. What a concept!

Mailed returns for the out of state folks get the 'sign here' stickers on the 8879s with an addressed envelope. Most fax or email the 8879s back, and use the envelope for the check.

That's exactly how we do it, though I'm never sure about how much they understand, but I do explain any changes or differences from the previous year in refund or balance due.

[Burke]

It was always my understanding that the 8879 had to be signed after the return was completed and reviewed by all parties to the return. I was interested in the logistics most preparers practiced. But no one has addressed my other questions regarding followup for 8879 completion, who is pending, or notification of efile acceptance or rejects. Streamlining the process is of paramount importance to me. I would tend to want to notify TP's only for rejects, but then that puts the responsibility on the preparer to make sure it IS actually efiled and accepted. Does the ACK come thru the software?

[AJsTax]

It was always my understanding that the 8879 had to be signed after the return was completed and reviewed by all parties to the return. I was interested in the logistics most preparers practiced. But no one has addressed my other questions regarding followup for 8879 completion, who is pending, or notification of efile acceptance or rejects. Streamlining the process is of paramount importance to me. I would tend to want to notify TP's only for rejects, but then that puts the responsibility on the preparer to make sure it IS actually efiled and accepted. Does the ACK come thru the software?

The acks come through the software, daily or more often depending on your volume and how often you log on to receive them.
What I have set up for our office works well. We have three folders set up. Most of our returns are drop offs. When the client comes in to pick up they are given the 8879 to sign. If it is a joint return and one is not present a copy is made with the one signature and they take the form to get the other signature and return to us. The copy waiting for the second signature goes into a file so we know exactly which ones are out. Once we have signatures those forms go into a file waiting to send. I send returns once or twice a day. 8879s sent waiting for acks go into the third file until they are accepted, then are transferred into the client file. I also check daily for returns that are getting stale that were done and not sent or sent and not accepted. This is easy through the software.

[PIGLEE]

That is about the way I handle it. The file moves form one file box to the other, as the different steps happen. Those files are looked at a lot, and if a file stays in one place more than it should, it is checked into. We also keep log sheets, that are looked at every day for problems.

[Mo Sheets]

e-file is so much nicer....

Having prepared taxes both ways (manual method...many years ago) and via tax software with e-file capabilities, I must say e-file is the way to go. I love it...because it double-checks MY WORK and helps alert me if I missed something. Also, as others have pointed out, clients get their refunds much faster.

I e-file all returns that are able to be e-filed. My clients love it, I give them a copy of the acceptance letter showing the "Your Federal Return Has Been Accepted/Your State Return Has Been Accepted" and they don't have to pay postage/return receipt because they know their return has been received. I always encourage my clients to come in early in the tax year, letting them know we can e-file the return now....in the event you owe, you still have until April 15th to send in your payment with the voucher.

I hope everyone who is not currently using e-file at least tries it....I think you will be pleasantly surprised!!

Mo

[FEDUKE404]

One other idea

Having prepared taxes both ways (manual method...many years ago) and via tax software with e-file capabilities, I must say e-file is the way to go. I love it...because it double-checks MY WORK and helps alert me if I missed something. Also, as others have pointed out, clients get their refunds much faster.

I e-file all returns that are able to be e-filed. My clients love it, I give them a copy of the acceptance letter showing the "Your Federal Return Has Been Accepted/Your State Return Has Been Accepted" and they don't have to pay postage/return receipt because they know their return has been received. I always encourage my clients to come in early in the tax year, letting them know we can e-file the return now....in the event you owe, you still have until April 15th to send in your payment with the voucher.

I hope everyone who is not currently using e-file at least tries it....I think you will be pleasantly surprised!!

Mo

One other suggestion: At the time of efiling, you can select any future date for payment (bank debit), up to April 15th. That takes care of any need to mail a payment voucher with a check, and of course eliminates any "problems" that might occur with the mail.

I usually tell my clients to select a debit date NLT a week prior to 04/15. That way they can check their bank account online for confirmation or still have time to pay "the old way" if any problems occurred, and also sleep much better. I do strongly remind them to have the funds in their account on the actual debit date they select...there is NO float with the IRS!

FE