Electronic Filing Mandate

Posted by Bruce Mc on Jun 11, 2010 in Choosing a preparer, Filling Status, Preparer, Tax Preparation | 0 comments

The IRS has been making changes to the Electronic Filing Mandate that originated in H.R. 3548 as  predicted when it first came out.

At this point in time they are saying for this next tax season they “anticipate” asking requiring preparers who do 100 or more returns to file electronically and then lower that threshold to 10 for the next filing season.  They are doing this because they expect low volume preparers may need more time to get signed up and familiar with the process.  They will also be looking at a waiver process so if there is an extreme hardship for a tax preparing firm they may obtain extra time to get into compliance.  They are also stating that taxpayers may need some convincing so if a tax client wishes to opt out there may be a way to do so.

As you can tell there is a lot of “supposes” and “may be’s” in this statement……the IRS isn’t completely finished with what they are planning for this next tax season.  As I hear more, I’ll make sure to update you.