Electronic Tax Filing Online

Tax preparers to only e-file federal returns

Posted on 21. Feb, 2011

Many provisions governing tax agents and preparers have been changes beginning from 1^st Jan 2011. The definition of a “specified tax return prepared” stands altered and needs to be complied with by all. All the tax preparers must be enrolled in the new scheme and get their Tax Preparers Identification Numbers (TPIN). The tax preparers who intend to file returns through Form 1040, 1040A, 1040 EZ, 1041 for 100 or more individuals, trusts or estates must do it only electronically.  They can no more use the paper returns to do so.  It has already been decided and communicated that this current threshold of 100 returns will be revised and stand at only 11 for the next tax year. All this is being done so that tax preparer’s activities can be kept track of and possibilities of frauds can also be kept at minimum.

An IRS authorized prepares also needs to have Electronic Filing Identification (EFIN) to file online returns for their clients. They will have to mention these numbers while filing returns electronically for each and every client. In case tax preparers those who are planning 100 or more returns this season much have their EFIN. In case you do not have an EFIN you must act fast and apply for it. It would take around 45 days (one and a half month) to get an EFIN.  Tax preparers are strongly advised to go through the official IRS website and get more details on the latest provisions which already have taken effect.

Learn more about file tax returns online & 1040ez

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