Preparing returns without PTIN

[taxxcpa]

In 2015 I plan to prepare only three tax returns and charge no fee. (My own return and my two daughters).

Am I required to obtain a PTIN if I e-file them?

I assume that my EFIN won't expire even though I no longer file returns for a fee.

Also, it will no longer be feasible to use Drake software due to the cost, and may use Tax Act.

So, my second question to Tax Act users: Can I e-file using Tax Act without showing myself as paid preparer?

If I cannot e-file, then I will be forced to paper-file them.

[JON]

I

can not believe you need any thing, but time to have fun.

[taxmom34]

I 've retired and now only prepare my own return & 2 children and 2 sisters returns. I now use turbo tax and alternate years with software from HRB. either of these are much cheaper than professional software. Both software are easy to use, but as a preparer I don't use the interview questions (only when I have special issue that I'm not familiar with) and I enter info myself. I retired before PTIN was necessary, so that was no problem. each software give you free efile of five returns and you need to pay extra to efile state returns. turbo tax is more expensive than HRB. I happen to like the depreciation statement of turbo tax , but HRB seems to have good techies to help where turbotax techies don't seem to be up to date on training or they don't care. One year I had a problem with printing with turbotax and when I contacted them their technician was working from home and had no printer so, couldn't help me, she was reading the same thing I was reading on their web site for trouble shooting. I have gone through each software interviews and both are very similar and not a bad deal if you know what you are doing.

[WTorres]

TaxAct

You can efile through TaxAct's website without a PTIN. It would be the same thing as using TT or HRB. In the past you could efile 5 returns from the same email address without having a PTIN.

[rtsietsema]

Must file as self-prepared

I believe both HRB and Trubo Tax prohibit the use of their programs by tax preparers and will not allow a return to be e-filed when done by a paid preparer. This means that in effect you may e-file returns for others, but... They will be considered self prepared and should only be done with the other person present, since they alone are responsible for all entries on the return.

[taxea]

If you prepare returns for a fee then a PTIN is required whether or not you Efile them.

[Mo Sheets]

TaxAct

I use TaxAct for filing client returns. I do my son's return, my stepdaughter's return, and several other family member's returns for free. TaxAct has a check box that indicates "Check this box if you do not want Paid Preparer information to transfer to this return (Preparer Edition Only)." On the returns that I do for my family members, I check the box. All of my paying clients, I leave the box unchecked.

I hope that helps!

Mo

[ATSMAN]

You can do the Federal return for free online using Taxact and just pay for the state e-file!

[powerage]

I use TaxAct for my personal return, my girlfriend's and her twin sister, and my brother. I don't charge them, and I only use my PTIN on my return.

[JohnH]

If you don't charge a fee for the return, you are not required to sign it nor are you required to enter your PTIN on the return. In fact, you are told not to do so.

The Form 1040 Instructions are pretty clear on this point, although many preparers try to read al sorts of things into the language which simply are not there:

"Paid Preparer Must Sign Your Return
Generally, anyone you pay to prepare your return must sign it and include their Preparer Tax Identification Number (PTIN) in the space provided. The preparer must give you a copy of the return for your records. Someone who prepares your return but does not charge you should not sign your return."

The last sentence is very clear, and it takes a fair amount of wiggling with language to make it say something it does not say.

[ATSMAN]

When I was doing paper filings, I was doing exactly that for my own family and friends. However with e-file now you need to indicate "Non Paid Preparer" because the PTIN and EFIN gets transmitted with the return. I think you will get reject ack if you leave PTIN or EFIN blank. Software may even prevent you for submitting the e-file.

Try it. My software rejects it outright.

[taxxcpa]

I will continue as a paid preparer for 2013 returns, but do not intend to renew my PTIN and do not intend to pay the State Board of Public Accountancy for a "Practice Unit" license, and will pay a reduced license as a retired CPA when I come up for renewal. Also, I won't have to take CPE.

I plan to file only three 2014 returns in 2015--at no fee. I checked the price and I can get the professional 1040 version of Tax Act for $ 119.99. I have used the professional version of TaxAct in prior years and found that it could handle some situations that my other software mishandled. Free would be better as far as price is concerned, but I can afford $ 119.99 without missing too many meals.

Using the professional version, I can avoid the interview approach some programs use.

I would have switched to TaxAct when I quit using ATX, but they did not have the Texas Franchise Tax at that time.

I may still want to buy The Tax Book for use in my own and my daughters' returns.

[ATSMAN]

Why do you want to spend $120 for 3 returns.

Get the TaxAct Deluxe with the state bundle I think it is $21 or $23 and prepare as many returns you want as long as you are not the paid preparer. To place to enter PTIN or EFIN.

[taxxcpa]

Why do you want to spend $120 for 3 returns.

Get the TaxAct Deluxe with the state bundle I think it is $21 or $23 and prepare as many returns you want as long as you are not the paid preparer. To place to enter PTIN or EFIN.

You are probably right. And I don't even need the state returns since we have no state tax.

[taxmom34]

wow, I just checked prices on taxact site, for the deluxe , you can get free efile 5 federal returns, prepare unlimited returns , add state return for less than $30. I would try it this year but I already bought my software.