URGENT for all E-Filers

[RLymanC]

This should be very VERY interesting.
Be sure to go to this web site, we only have 10 days to comply

http://www.irs.gov/efile/article/0,,id=172577,00.html

[S T]

Received today 7/30/07

I also received this on the IRS news update.

I think we need the TB editors to provide us with some guidance, but my understanding is that unless you have a "Website" that is receiving t/p data for efile, we do not need to be concerned.

Those of us that just process tax returns and submit to our tax prep efile are not included in this new reporting.

Thoughts would be welcomed.

Sandy

[RLymanC]

Sandy

I transmit my returns that are prepared on my computer directly to my software provider, who in turn transmits to the IRS. As I read it I'm not requires to submit their URL....AGREED?????

[S T]

More on Efile Registration

From another Post

It does not appear to me from the announcement that it will apply to ERO's unless you are collecting client data via an internet portal. See the second paragraph of the announcement http://www.irs.gov/efile/article/0,,id=172577,00.html below (emphasis mine):
"New Rule for Registration of Web Sites with the IRS

"The IRS has established new e-file rules to enable it to more quickly identify fraud schemes including phishing. These new IRS e-file rules apply to all Authorized IRS e-file Providers, including Online Providers, Intermediate Service Providers, and Electronic Return Originators (EROs) that obtain taxpayer information via the Internet directly or through third parties in order to e-file federal returns."

I guess we all need to contact our Software Providers, to see if we need to comply with the registration procedures.

I do not have a web site (internet portal) and do not obtain taxpayer information via a web site (internet portal) , so I am thinking the new procedures will not apply.

Sandy

[ED SMITH]

Unless you OBTAIN tax information directly from the internet, meaning a WEB site, I don't think that affects most of us.

"Who does this rule apply to?

This rule applies to:

• All Authorized IRS e-file Providers (Providers), including Online Providers,
• Intermediate Service Providers, and
• Electronic Return Originators (EROs)

that <<obtain taxpayer information via the Internet directly>> or through third parties in order to e-file federal returns. This includes practitioners who store taxpayer data on a website for the purpose of e-filing federal returns."

[S T]

More clarification needed

Another question arose,

if we use an internet backup company to back up our computer data offsite, then do these registration rules apply to those of us that are only efiling our returns through our software company? We have no website, not obtaining t/p data off of a website, etc.

Sandy

[Bees Knees]

From the IRS article: http://www.irs.gov/efile/article/0,,id=172577,00.html

New Rule for Registration of Web Sites with the IRS

The IRS has established new e-file rules to enable it to more quickly identify fraud schemes including phishing. These new IRS e-file rules apply to all Authorized IRS e-file Providers, including Online Providers, Intermediate Service Providers, and Electronic Return Originators (EROs) that obtain taxpayer information via the Internet directly or through third parties in order to e-file federal returns.

Providers must submit to the IRS by August 9, 2007 an Excel spreadsheet that has been encrypted using WINZIP 9 with password protection. The spreadsheet must include the following information:

1. An EFIN for the Provider;
2. The name of a Principal or Responsible Official shown on the e-file application for the EFIN; and
3. The Uniform Resource Locators (URLs) of all web sites that:

a) The Provider uses for e-file of federal returns;
b) Are portals or allow access to the Providers' online e-file software: or
c) Are used to obtain taxpayer information for the purpose of preparing and e filing federal returns

The Principal or Responsible Official must submit the excel spread sheet and the password via separate email messages to efileurlreg@irs.gov.

In the future, Providers are required to submit this information to the IRS prior to the website being accessible on the Internet, and are further required to submit to the IRS, within three (3) business days, any changes to previously provided information.

It is clear by this that it does not apply to those of us who obtain our information from clients the traditional way. This only applies to those who have websites where the client directly enters data that we in turn use to e-file their return. It does NOT apply if we only use the internet to transmit or backup the return after it is prepared.

I could see where this thing could get twisted to draw everyone in that has clients email their stuff to us. If that is the case, I will no longer accept emails from clients. But judging by the context, the IRS is really going after websites that make it easy to commit tax fraud. They want your URLs so they can easily check and monitor activity from people suspected of these tax schemes.

[BOB W]

Did it anyway&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt;&gt; &gt;

I wasn't sure what to do so I sent them my information they requested anyway. I got an email back saying they were processing it. ?????????

I have in the past sent fill-in organizers and rec'd them back through CS portal, so I concluded it covered me. I haven't done it in years and don't intend on doing it anymore but I have the capability, so.................

By the way, I don't have Win Zip 9 so I used Adobe with a password. I didn't send them the file, only a printed copy of the excel report. Their email didn't question me about the way I sent it....????


Here is their return E-mail:

Thank you Bob, we have submitted your information for validation.

Justin J. McCarty , Sr. Program Analyst

Internal Revenue Service ID: 50-24246
Electronic Tax Administration - Strategic Planning Division

Relationship Management Office

[RLymanC]

Winzip 9

The IRS will accept WinZip 9 or later. Ver. 11.1 OK to use available at:

.

http://www.tucows.com/preview/194294

[thomtax]

Drake 1040 website

For those that use Drake software and utilize the 1040.com website and it has the link to file over the internet - it is my understanding from Drake that this link takes you to another site that is registered to Drake and that they will take care of all necessary steps with the IRS. In other words, you are not filing or gathering information at your own website.

[jimmcg]

Was at the Cincinnatti District office this AM and their interpretation of this is that URL registration applies only to websites that obtain taxpayer info via the internet directly or through third parties with the direct intent to efile federal tax returns. There is supposed to be a clarifying news update from National in the next few days.

[Gretel]

Wow, this post shocked me a bit. Especially the short deadline. This is the first time I even heard about this. I am glad I don't need to do this. But who know what else they come up with. Maybe one day we will have to go back to pencil & paper.

[BOB W]

Cs

I rec'd this e-mail from CS's ultra tax at Thomson Tax


When your customer logs in to their Web Organizer, they are technically accessing a Thomson Tax & Accounting URL. As such, the obligation to register the URL with the IRS falls to Thomson Tax & Accounting. You can be assured that we have taken the appropriate measures to register our URL and there is nothing else UltraTax CS users need to do.

[Black Bart]

Yeah -- you, me, and

Wow, this post shocked me a bit. Especially the short deadline. This is the first time I even heard about this...

probably thousands of other EROs.

Although I don't have a website, at first glance I thought the requirement included me as an ERO and had a small heart attack.

It's just a ****ed outrage the way IRS treats preparers as second-class citizens. During tax season they give away Pub 17s to taxpayers and charge us an outrageous amount for them. Here, they've thrown this rule out there abruptly with no advance warning whatever, telling us that we have an absurdly short time frame to complete a potentially complicated procedure involving Excel and/or Winzip, and stating in so many words that if you don't do it and do it on time, then you're out of the EF business.

Apparently IRS doesn't see any need to notify the potentially affected (all EF preparers) by a general mailing, but rather consider it adequate administration to simply let those who happen to stumble across the rule (such as our being notified here by a random posting) comply; or not. The attitude seems to be that the uninformed can drop dead; after all, it was posted on the IRS website and gave the affected parties ten whole days to do something about it. Funny thing about IRS -- when they get serious about monies owed, they send it certified mail with a 10-day deadline. If you are due a reply, they say you'll hear back in 8-12 weeks (maybe).

When I took the EA exam, it took months to get my score. Things like that, plus the current flap, that may materially affect your livelihood are viewed as trivial concerns by IRS personnel. They're always asking for "input" and "co-operation" from the "preparer community," but it's apparently a one-way street.

I got an IRS letter yesterday which asked for three 8453s (which I sent previously and they lost), gave me me ten days (no return envelope like they include for "normal" people), and pointed out "EROs who are lax, negligent, or untimely...may be...suspended..." (it's very disconcerting to realize that the fate of your business is in the hands of incompetent dopes). They said to mail or fax them, but I don't trust their paper-handling abilities, so I did both. I prefer certified mail, but a Little Rock agent once told me their "special handling" of that takes longer than "regular" mail (3 vs. 5 days).

Here's another absurdity (this was included in my 8453 letter). "If a signed 8453 is not available, submit a completed form 8453 without a taxpayer's signature and attach Form 8879 signed by the taxpayer. In other words; if I had lost the original 8453 and couldn't find the taxpayer to get another one signed; well then -- no problem. Just send in an 8879 that he/she has signed.

Such stellar advice concluded with this: "We will still hold your company responsible for not submitting the required forms even if your clients provide them to us." Gosh, that kinda sounds like the goal is not to so much to get the forms as it is to "get" me.

[sea-tax]

Hey BB I agree whole heartedly. So what do you suggest, I vote we all go on strike for one tax season? I have not had a vacation is years so this will be refreshing.