Emailing Tax Returns to Clients

[Hamacher]

Does anyone email tax returns to their clients vs providing paper copies? If you use your PTIN do you have to send them a signed copy?

Thanks in advance for your help.

[taxmandan]

I've tried the email thing, but the encryption seems to be hit or miss on whether the client can open the file a see it. I don't know why, but suspect that some ISP spam protections block encrypted files. So everyone still gets a printed copy, until there is a outcry for a DVD copy by the masses.

[Hamacher]

Actually

If that becomes a problem, I will use my FTP on my web site. My primary concern is whether I could simply print the returns out of my tax software program as a PDF and then email them. I've talked to a few preparers that say it works great. Saves a lot of time and money. If I have to print them, sign the return, scan, then email... I may as well put it in a folder to give to them.

[Uncle]

Works for me

Does anyone email tax returns to their clients vs providing paper copies? If you use your PTIN do you have to send them a signed copy?

Thanks in advance for your help.

I offer this to all clients with an email address. I charge $25 for a CD or a paper copy. Nobody has ever refused and requested a CD or paper instead. The encryption/password system has been problem free, so far.

[Will H]

I offer this to all clients with an email address. I charge $25 for a CD or a paper copy. Nobody has ever refused and requested a CD or paper instead. The encryption/password system has been problem free, so far.

Am I understanding correctly that you charge $25 for the first paper copy?

[Hamacher]

Signature?

I offer this to all clients with an email address. I charge $25 for a CD or a paper copy. Nobody has ever refused and requested a CD or paper instead. The encryption/password system has been problem free, so far.

Does their electronic copy include your signature?

[PIGLEE]

You do not have to sign THEIR COPY. You only need to sign the 8879's, or the copy they mail to IRS.

[AJsTax]

no signature

Does their electronic copy include your signature?

the only copy to be signed is the official filing copy. with efile that would be the 8879 and the electronic pin sent to the IRS. You do not have and should never give the client a signed copy unless it is the one copy being mailed to a taxing authority.

[Hamacher]

Ok

You do not have to sign THEIR COPY. You only need to sign the 8879's, or the copy they mail to IRS.

So because you do not mail the 8879, you can fax them their copy of the return with the 8879. They can then return the 8879 with their signature and all you need to do is sign it and keep it on file. Correct?

Thanks again. I think I may try this with some of my clients.

Anyone else have any thoughts, experiences?

[ttbtaxes]

You ought to be very careful about emailing any document that has a social security number in it. Some states have laws that govern whether you may do so and how. Here is an article about Nevada's law:

http://www.privsecblog.com/2007/10/articles/state-legislation/nevada-passes-first-law-requiring-business-to-encrypt-customer-personal-information-during-transmission/

It's not good enough any more, in my opinion, to simply password protect a tax return then email it unless it is powerfully encrypted. I won't email any tax documents. They must be uploaded through a secure portal or snail mailed.

[MAMalody]

I e-mail the returns as a password protected .pdf file. They have to sign the 8879 and return it to me either via e-mail, fax or snail mail. Then I e-file the return. No problems and no complaints over 8 years that I have been doing it this way.

[FEDUKE404]

Masking of Social Security numbers

Am I understanding correctly that you charge $25 for the first paper copy?

I had the same question!! WOW!!! Is there a paperclip surcharge also?

FWIW: Most professional tax software now has the ability to mask Social Security numbers (format such as ***-**-1234) for the filer(s) and all dependents, as well as any bank direct deposit information, on all printed copies of the tax return, to include PDF copies of same. The efiled tax return obviously contains the full information and is encrypted for transmission to the IRS.

Does use of this option change anything as to what methods can be used by a tax professional to get electronic copies of tax returns and related documents to/from clients??

(This query does assume that the tax returns will be efiled!)

FE

[MAJ]

PDF password protection

is (correct me if I am wrong) not supported or recommended by 'The Boys' - IRS - .

I do believe it has to meet certain encryption strength wich a PDF password does not support. Winzip does - It must be configured & support 256-bit AES encryption. So, the receiving client must have / install Winzip as well. Once setuup - Bingo! But some clients --- No!

Background:

http://www.irs.gov/businesses/small/article/0,,id=177419,00.html

http://www.irs.gov/businesses/small/article/0,,id=177651,00.html

[DMICPA]

emailing clients returns

OK, I have searched around, attended seminars etc. I hear speakers mention that we should/must use some kind of password protection or encryption when emailing a tax return. Of course they are not specific.

I cannot find it anywhere in Circular 230 where it even mentions anything.

Where does it say we must do this and what would be the proper method?

We should all be concerned about this if it is true.

Is there a definitive statment anywhere which absolutely requires us to do this?

[Gary2]

OK, I have searched around, attended seminars etc. I hear speakers mention that we should/must use some kind of password protection or encryption when emailing a tax return. Of course they are not specific.

I cannot find it anywhere in Circular 230 where it even mentions anything.

Where does it say we must do this and what would be the proper method?

We should all be concerned about this if it is true.

Is there a definitive statment anywhere which absolutely requires us to do this?

For IRS purposes, it's in the same place where it says you can't leave your office and file cabinets unlocked. In other words, it's not an explicit requirement, but simply proper care versus negligence. Keep in mind that "common practice" can influence what "proper care" really means.

On the other hand, as pointed out earlier in this thread, various states may have stronger requirements.