Preparing returns without PTIN

[ruthc]

Tax Act

I use TaxAct for all my clients. The tax preparer edition is very reasonable and I have no problem with the software.

You need to read what the Deluxe includes again. You can't get 5 efiled for free. Below is part of what TaxAct advertises for the Deluxe version:

"TaxACT Deluxe includes one free federal electronically filed return. Along with unlimited preparation and printing of returns, TaxACT Deluxe for download or CD allows up to four additional federal returns to be filed electronically for $9.99 each. Per IRS regulations, you are limited to 5 returns filed electronically."

Of course if you need the state you have to purchase the software and pay for that efiling.

I would watch what you get for free when doing something as important as tax preparation. You know what they say.......you get what you pay for!!

[FEDUKE404]

Question - TaxACT

I thought only the "Preparer's" (professional) edition of TaxACT allowed entries for preparer, PTIN, etc.

The reference to the "Deluxe" Edition sounds strangely like the similar scenario with the TurboTax box you can routinely purchase in Staples: you get up to five efiled returns, any state software/efiling costs extra, and the tax return is always marked "Self-Prepared." There is also that nagging statement that the TurboTax software cannot be used for any commercial preparation of tax returns. My guess is the TaxACT non-professional "Deluxe" software might carry a similar restriction? Either way, going that route is simply not conducive to what most of us would call running a tax preparation business.

I have used the TaxACT "Preparer's Edition" for several years. The software meets my needs and it improves each year...it now even includes Form 1040-NR ! Aside from merely "preparing" tax returns the professional version tracks client billing (invoice/payments), provides for annual preparation of personalized tax planners based upon a client's specific tax return, and efiling (and tracking) is literally a click or two away after a simple one-time setup to enter the relevant preparer EFIN/password/etc. I now purchase the "Preparer's Edition," buy the "all states" option, and sign up for unlimited efiling. Delivery/updates of all software is online. (The break-even point for states is around three, and for efiled tax returns somewhere in the high 50 return or so level.) At the end of each tax season, they generally offer a reduced package price for the upcoming tax year.

Just my 2¢ worth.

FE

[ATSMAN]

TaxAct Pricing

TaxACT's Desktop Products. Go to their site to see a comparison. State e-file additional.


Free Edition
Free


Deluxe
$12.99


Ultimate
$21.99

Add 4 additional federal e-files for only $7

[FEDUKE404]

Using non-professional tax software to prepare returns

TaxACT's Desktop Products. Go to their site to see a comparison. State e-file additional.

Free Edition
Free

Deluxe
$12.99

Ultimate
$21.99

Add 4 additional federal e-files for only $7

I still am not convinced a paid preparer can "go the cheap route" by using the various TaxACT Desktop products. Certainly no one running a tax business would select such a limited option, unless (perhaps) all returns are paper filed. I guess if a paid tax preparer chooses NEVER to efile, the Desktop products might save a few dollars in operating costs.

Of course, I also know an unnamed CPA who would each year purchase the cheapest TurboTax software, print out the completed forms, white-out the "Self-Prepared" line, then sign and deliver to clients for mailing. It does take all kinds. . .

OTOH, a person who would like to prepare/file some "family member" tax returns could certainly consider the TaxACT Desktop route as a low cost option.

Info from TaxACT web page:
The IRS limits anyone who is not a licensed tax preparer to five electronically filed returns. TaxACT Deluxe, by law, supports this e-file limitation. It can however, complete an unlimited number of paper filed returns.

If you are a tax preparer and would like to prepare unlimited electronically filed returns, please purchase TaxACT Preparer's 1040 Edition. Keep in mind, however, that you must obtain a PTIN (Preparer Tax Identification Number) and an EFIN (Electronic Filing Identification Number) from the IRS in order to file electronic returns with our preparer's edition.

FE

[ATSMAN]

Not for Paid Preparer

These Taxact products are NOT for the paid preparer. I believe the OP was retiring and only wanted to do 3 returns for family as a non paid preparer.

This version will NOT allow you to enter PTIN or EFIN. For that you need the preparer version.

[taxea]

And don't forget that the IRS is looking at returns that appear to be professionally prepared so don't check that box if you got paid.

[taxxcpa]

And don't forget that the IRS is looking at returns that appear to be professionally prepared so don't check that box if you got paid.

In 2015 I will be an ex-professional. No PTIN, no TSBPA practice unit license, no fees charged.

[JohnH]

Get your license to cut & style hair.
As a barber or hairstylist, you automatically maintain your professional status as an expert on taxes.

[ATSMAN]

I never argue with my Barber!

I never argue with my Barber when he is holding the straight razor! I will take all the stock and tax tips he give me free!