A loophole big enough to drive Robert D. Flach through – New proposed regulations on the requirements for preparers to e-file tax returns will be good news for hand-prepared return holdouts like blogger/preparer Robert D. Flach. The regulations appear to require paper-preparers to e-file only if they will be actually mailing the tax returns.
Waiver to e-File. – Yesterday the IRS released Notice 2010-85 with the proposed rules for a tax return preparer to get a waiver from e-filing. In November of 2009, Congress mandated preparers to electronically file their client’s returns if they prepare over 10 returns. The IRS decided to phase this in and for 2010, the rules apply to preparers who file over 100 returns. In 2011, the threshold is down to 10. The IRS has developed two kinds of exemptions and finally released the details and procedures for requesting a waiver.