Requirements when not e filing Federal

[Lion]

lol.......

[JohnH]

--> I'm reluctant to press my luck with prior year returns, and end up making clients return to pick up a paper return to mail. <---

Yes, but look at the bright side.
Late filers are always so interesting to talk to, especially as they go on and on with the most fascinating excuses. They can be some of the most creative people you'll ever encounter in a tax office.

[Lion]

I use ProSystem fx. They allow e-filing of prior year returns. However, at this time, the return has to meet the MEF requirements of that year. Very few, if any, of my 2010 returns qualified for MEF. And, as you mentioned, if rejected by MEF, then must be paper filed, unlike a current year return that would then default to Legacy. So, I'm reluctant to press my luck with prior year returns, and end up making clients return to pick up a paper return to mail. Just want to make sure I cover myself with all the right paper forms.

[ChEAr$]

That form 89...xx whatever for not efiling isn't just an opt out form. I had to resort to it twice on last day of tax season when my ISP cut me off about 1 pm. There are several boxes to check if I recollect rightly. That last one I think was "Other", and space to justify, which I did.

And BTW, my ISP cutoff (AT&T) was NOT because I didn't pay my bill. GRIN)

[Gary2]

Does your software actually allow e-filing of 2010 returns? I know that it's technically possible, but many software providers were so overwhelmed with 2011 MeF deployment that they simply chose not to support late e-filing of 2010 returns. One key distinction is that a 2011 return that fails to go through MeF can be e-filed as legacy, but a 2010 can't. You may recall a few weeks early this year when the IRS was forcing legacy, due to the load on their MeF servers.

I'm curious as to which providers are running ahead of the pack on this issue.

[Lion]

Thanx, all. I've been reading everything I can on the regulations. My 2010 software did NOT pull up the form; although, I can call up an opt-out form. Did the 8948 even exist in 2009 returns? (For 2011, we are efiling.) From what I read, filing in 2012 the 10 returns requirement refers to 2011 ONLY Forms 1040/1041 and not to 2010 or earlier years filed during 2012.

Client may come later today to sign and pick up. We're e-filing 2011. I have a 2010 opt-out form for him to sign. And, I'm not as worried about 2009. But, I'm going to see if I can force 8948 with his 2010 return.

[okie1tax]

Prior year returns

One of the reasons on the 8948 is "my software does not allow this return to be e-filed" or words to that effect, I don't have the form visible. So, if you set it up to e-file and the software allows it, great. The fact that a particular 1040 "legacy" filed last year does not necessarily prove it won't MEF. I guess what I am saying is to go with your software. If you want to paper file and the return could be e-filed, your software SHOULD print form 8948 automatically.

[Lion]

Can the prior year returns be e-filed? If yes, then either e-file or get the 8948 signed. It's that simple, isn't it?

How do I find out? I've never had a 1040 that filed via MEF before 2011; they all filed via "legacy" except for extensions. Does that mean these prior year 1040s cannot be efiled?

I never filed 1041s before 2011 returns; I did not pay my software company to efile 1041s. For 2011 returns I meet the requirements to file 1041s and did pay. But just because I'm required to e-file 2011 returns, does that mean I'm required to e-file 2010. 2009, and 2008 returns if filed during 2012?

[okie1tax]

Prior year returns

Can the prior year returns be e-filed? If yes, then either e-file or get the 8948 signed. It's that simple, isn't it?

[JohnH]

Gosh; those Young Turks (AKA Junior Members) are tough, aren't they, Duke? It's gettin' to where a fellow cain't even beat his wife (strike that -- I mean browbeat a client) anymore without tickin' somebody off .

There are plenty of reasons to browbeat some clients, regardless of how they feel about about eflinging.

A few of them just seem to crave attention, even if it's negative.

[Lion]

Prior Years

I have a bunch of prior year returns, 1040s and 1041s, to finish up. Should I have clients sign 8948s and Opt-Out forms for prior year returns?

[Black Bart]

If your client does not want to efile, you're free to belittle them and browbeat them all you want.

Gosh; those Young Turks (AKA Junior Members) are tough, aren't they, Duke? It's gettin' to where a fellow cain't even beat his wife (strike that -- I mean browbeat a client) anymore without tickin' somebody off .

[FEDUKE404]

Not really

The client doesn't want to?

If your client does not want to efile, you're free to belittle them and browbeat them all you want.

I don't plan to "browbeat" anyone, but rest assured if a client does not want to efile he will be provided with a copy of Form 8948 and asked to sign the IRS required "opt-out" letter which I will maintain in my permanent files.

My guess is, most clients when faced with those two issues just might ask "...but why am I having to do all of this??"

Then I will politely explain that the IRS is now requiring all professionally-prepared tax returns to be efiled when such is possible and that I feel the advantages of efiling far outweigh any personal reservations the client might have against using such an option.

Oh yes: And the tax preparation fees will be higher.

FE

[dodgedipduck]

What valid reasons does a client have for NOT wanting to efile?? FE

The client doesn't want to?

Does said client also insist on the use of a rotary phone, enjoys 8-track music, has a slide rule but no calculator, and drives a non-air conditioned automobile? Let me guess: Direct deposit of any refund is also a no-no, and your client loves seeing those little brown window envelopes in his mailbox?? Quite frankly, I feel "important" things are at far greater risk these days when handled by the US Postal Service. Aside from that issue, the client data does not have to be reentered by some IRS clerk and you do have an immediate record of the returns being accepted by the IRS/state. (I guess you should avoid mentioning the conveniences of online bill pay to said client...)
FE

If your client does not want to efile, you're free to belittle them and browbeat them all you want.

[erchess]

I am among those

who charge extra for a paperfiled return that could have been an electronic return. The fee is $25 and the justification is the printer wear and tear the paper the toner and my time. The fee also applies btw to a client who insists on a paper copy of their return for their files. However there is only one $25 extra paper fee per return so this guy who is paperfiling does not have to pay another $25 because he wants a paper copy of the return for his files and he does not have to pay a third $25 because he wanted a paper copy for the other firm. I am seriously thinking of reducing the fee to $10 and applying it to EVERY extra copy. In other words my normal hourly fee would get you efiled (or paperfiled if you could not be efiled for some reason) and a PDF Copy of everything I feel you need or know I legally must give you for your records. Then a paper copy for your records would be $10, copies to mail would be $10 for all the returns you could efile but won't, and if applicable a copy for you to give someone else would be $10.

By the way if a return could be efiled but there would exist a requirement to mail anything in anyway I encourage the client to go on and paperfile. I know how to efile with nothing mailed in and I know how to mail in a whole return. I have so far avoided the necessity of learning how to efile and also do a mailing related to the return. The reason in my case for encouraging efiling is that for reasons I am not sure of I procrastinate every time I need to mail something.