Tax preparer issue

[oceanlovin'ea]

IRS is working toward having all returns electronically filed. They are getting closer to that goal.
Perhaps if the clients understood the advantages of efiling, they might be more receptive to it.
Although in your case, you really don't want them to efile.

Linda, EA

[Gary2]

I should have been clearer in my first post. I have had a PTIN for fifteen years, sign my returns as a preparer, and take at least fifteen hours of CPE studies per year to keep up to date. IRS states that if you file taxes for your clients (over 10) you must efile. I do not file my returns. My client base does not want to efile, do they need to sign a 8948?

They need to sign something to provide you with documentation that it was their choice, but the 8948 does not qualify as that something. (It even says that it doesn't qualify in the instructions.)

People are getting confused because there are literally two different pieces of paper involved. The first, the Form 8948, must be attached to (almost) any paper return that is being submitted if that return was prepared by a "specified" preparer (most of us) and is a "covered" return (e.g. any 1040-series, plus many others). The 8948 has several check boxes, only one of which is "taxpayer chose to file this return on paper." If you qualify for one of the other reasons, then this might be the only piece of paper you need for this return (e.g. can't e-file because of multiple IRS rejects).

The second piece of paper is not an official IRS form although they do specify minimal contents, it must be signed by the taxpayer, it doesn't get attached to the return, and it must be kept by the preparer as proof of the taxpayer's choice. The instructions for the 8948 identify the revenue procedure with the details, which you can find with an internet search. Since it's likely to change, I won't identify it here; get the most recent version from the IRS site.

To summarize:

• Form 8948 is not signed, but is attached to the return sent to the IRS.
• The taxpayer's confirmation is signed by the taxpayer, is not attached to the return, and must be kept by the preparer.

Addendum: Adding to the confusion are the IRS's logical machinations. They impose the e-file requirement only on returns filed by a preparer, making it clear that if the taxpayer does the mailing, then the e-file requirement doesn't apply. That could lead one to believe that if you give the paper return to the client, you're home free. But you're not, because the aforementioned revenue procedures require you to keep documented proof, including the client's handwritten signature, that the client made the choice.

[Izzy44]

preparer issues

I should have been clearer in my first post. I have had a PTIN for fifteen years, sign my returns as a preparer, and take at least fifteen hours of CPE studies per year to keep up to date. IRS states that if you file taxes for your clients (over 10) you must efile. I do not file my returns. My client base does not want to efile, do they need to sign a 8948?

[S T]

Gary as usual you are correct,
Trying to keep up with all of the new regulations on Licensing, etc, so for the RTRP effective 2012 tax year filings (not 2011)

We always have one foot in one year and another foot in the coming year

Thanks for the correction,

Sandy

[Gary2]

Form 8948 must be attached to each return, however, I do not see a Taxpayer's Signature requirement. As a preparer you can file for a waiver of efiled returns, see
From IRS website http://www.irs.gov/taxpros/providers...223832,00.html Filing more than 100 returns in 2011, or more than 11 in 2012 must e-file.

There is no requirement for a taxpayer's signature on the 8948. However, there is a documentation requirement on the preparer if box 1 is checked, which requires that the preparer get the taxpayer's signature on a form kept by the preparer, not attached to the return. See the instructions, and then read the various references given there.

Compliance with Licensing, CPE, Certification and PTIN is a must for 2012 filing 2011 Tax Returns.

There's no CPE requirement for filing 2011 returns during the traditional 2012 filing season. I'm not sure what you mean by licensing or certification - all that's needed is a PTIN.

[S T]

Preparer

I do not file taxes for other people...I prepare them and hand them to the client. Will I have to start efiling. Will I have to have each client sign a 8948 ??

Form 8948 must be attached to each return, however, I do not see a Taxpayer's Signature requirement. As a preparer you can file for a waiver of efiled returns, see
From IRS website http://www.irs.gov/taxpros/providers...223832,00.html Filing more than 100 returns in 2011, or more than 11 in 2012 must e-file.

As noted in prior post, you will as a preparer need a PTIN # to prepare and file any returns, along with any required RTRP tests and certification, or CPE.

Compliance with Licensing, CPE, Certification and PTIN is a must for 2012 filing 2011 Tax Returns - (Correction for filing 2012 Tax Returns)

Sandy

[oceanlovin'ea]

So basically you prepare paper returns for clients (people) and they pay you for them.Is that correct? Do you sign the returns?
To be on this board you must have purchased a Tax Book. That would indicate to me that you probably want to prepare correct returns. Is that correct?

You are one of the people that IRS is trying to locate and they want you to register with them, get a PTIN and make sure you get education each year so that you prepare accurate returns.

At this stage of the game, you have to comply with IRS rules and become a registered tax return preparer or you have to QUIT preparing tax returns for these people and send them to someone with the proper credentials.

Just my opinion.

Linda, EA

[Uncle Sam]

And More

Being a paid preparer, you're ALSO obligated to obtain a Preparer Tax Identification Number
(PTIN).
Since you haven't obtained one previously - IRS is now shut down until 1st week of January for NEW PTIN applications.

[sholbtx]

Tax Preparer Definition

If you are paid for the tax return work-you are a tax preparer and you are:
a) Required to sign the tax return
b) Required to e-file

[Izzy44]

I do not file taxes for other people...I prepare them and hand them to the client. Will I have to start efiling. Will I have to have each client sign a 8948 ??