I was able to speak to an IRS agent who understood my question. If you do not submit or file tax returns for your clients ... the efile rules do not apply.
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I would almost say filing and preparing tax returns are interchangable words.
Why would you NOT want to efile? Less hassell.. Less printing.. More accurate.. Faster Refunds.. etc.. etc ..etc
ChrisComment
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That's the point - they are NOT. From the IRS website ... http://www.irs.gov/taxpros/article/0,,id=231871,00.htmlI would almost say filing and preparing tax returns are interchangable words.
If a preparer does not anticipate FILING over ten returns in 2012, they are not subject to the mandate.When is an income tax return considered filed by a tax return preparer?
For purposes of this electronic filling requirement, a return is considered filed by a tax return preparer or specified tax return preparer if the preparer or any member, employee, or agent of the preparer or the preparer’s firm submits the tax return to the IRS on the taxpayer’s behalf, either electronically or in non-electronic (paper) form. For example, the act of submission includes the preparer or a member of the preparer’s firm dropping the return in the mailbox for the taxpayer. Acts such as providing filing or delivery instructions, an addressed envelope, postage estimates, stamps, or similar acts designed to assist the taxpayer in the taxpayer’s efforts to correctly mail or otherwise deliver an individual income tax return to the IRS do not constitute filing by the tax return preparer or specified tax return preparer as long as the taxpayer actually mails or otherwise delivers the paper individual income tax return to the IRS.Comment
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The burden of proof is on the preparer to show that they didn't mail the return. The associated revenue procedure explicitly says that the fact of a "general business practice is to not mail paper individual income tax returns" doesn't necessarily prove this. The only safe-harbor proof is to keep a signed statement containing the wording in most current version of the revenue procedure, in which the client confirms that it's their choice.
Don't rely on IRS FAQs. Read the regulations and revenue procedures.Comment
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Not true. You need to read further in your link:
So even though the client does have the right to choose to file his/her own return by paper, the tax return preparer is still subject to the mandate in the sense that the tax return preparer needs the client to sign the statement.Note: If the client, and not the specified tax return preparer, intends to mail or otherwise file the client’s income tax return with the IRS, the specified tax return preparer should instead obtain a taxpayer choice statement conforming to the requirements of Section 9 of Revenue Procedure 2011-25 and use the statement contained in Section 9.04 of that Revenue Procedure. See FAQs 16 and 17.
If you read the statement you are required to have the client sign, it says something to the effect that YOU the preparer advised the client of the advantages of e-filing, but the client, and NOT YOU decided he/she still wants to file a paper return.Comment
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The preparer is required to follow the efile rules so....I have a policy that says:
If the return qualifies for efiling it will be efiled. If the potential client has a problem with that he/she is welcome to go to someone that is not subject to the requirement.
There are more than enough forms that require signature and need to be kept already...I don't need yet another nor do I need to be taking the time to explain or discuss with every potential client the need for this form just because they have a problem with "Big Brother".Believe nothing you have not personally researched and verified.Comment
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