New Rule requires registeration of web sites...

[Jack from Ohio]

I am curious if I have to send this information, or if ATX is the one that needs to comply.

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

New IRS e-file Rule July 30, 2007

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...

[GeneInAlabama]

It appears that this applies only to those who have web sites. I hope this doesn't apply to e-mail. I don't have a web site, so I believe I don't have to do anything on this, but I'm not sure. Also, I'm wondering if the WINZIP 9 software is something that is available free or if it has to be purchased.

Gene

[redux]

I am curious if I have to send this information, or if ATX is the one that needs to comply.

New IRS e-file Rule July 30, 2007

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...

If you haven't already, read the Q&As at http://www.irs.gov/efile/article/0,,id=172650,00.html I think that'll clear up the confusion. My sense it applies to those who have a web site upon which they store taxpayer information before or during efiling. In most cases we do not fit the criteria. ATX does, or any other web site that stores the taxpayer information ON THEIR WEB SITE...generally we don't do that. We only store the data in our personal or business computer.

However, if you fell for one of those traps where you can backup your computer on some web site...then this will apply to you.

[MAMalody]

<<<<However, if you fell for one of those traps where you can backup your computer on some web site...then this will apply to you. >>>

Ny reading of the two url's in this posting do not bring me to this conclusion. The two specifically refer to only your own or your company's web site. I don't see a mention of a third party web site that is a backup site. I can see where you could reach that far, but, I think it would have to be a reach. I don't have a copy of the original document that this info is off of. Does anybody have a copy?

Mike

[redux]

<<<<However, if you fell for one of those traps where you can backup your computer on some web site...then this will apply to you. >>>

Ny reading of the two url's in this posting do not bring me to this conclusion. The two specifically refer to only your own or your company's web site. I don't see a mention of a third party web site that is a backup site. I can see where you could reach that far, but, I think it would have to be a reach. I don't have a copy of the original document that this info is off of. Does anybody have a copy?

Mike

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.

Therefore if you use a third party web site to store your returns that you are going to e-file you need to register(if you have already efiled the return it is unclear if this registration applies)...

Also, you can ask questions at [email protected].

[taxtrio]

In reading the FAQ section of the irs link given. It appears if you only use a website to advertise information about your firm, no registration is required.

[OldJack]

Since some of us don't efile I guess we can store taxpayer information anywhere we wish without telling uncle?

[JohnH]

Jack: I'm with you on this one. Not efiling means at least one less hoop to jump through.

[TAXBILLY]

Agree with Old Jack and JohnH. Seems the IRS wants everyone to e-file but they constantly throw up more and more impediments. It's bad enough that we do their mail sorting for them with over 20 different addresses for different filings.

taxbilly

[JohnH]

I think if I ever decide to start efiling, I'll also go ahead & buy me one of those litle round hats with the chin strap and bright-buttoned jackets that the organ-grinder monkeys wear, since it continues to look like the IRS is just priming us to perform for them at their whim.

[MAMalody]

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.

Therefore if you use a third party web site to store your returns that you are going to e-file you need to register(if you have already efiled the return it is unclear if this registration applies)...

Also, you can ask questions at [email protected].

The opposite conclusion was arrived at, at least, at this point in time, on the Tax Book web site on the very same discussion. It also begs the question, what if you only store data after preparation, they have already been filed. I have sent this question to the IRS and will post the response upon receipt.

Mike

[TAXBILLY]

This is a copy of an e-mail a colleague received from the IRS regarding the questions she submitted (see below):

Thank you for sending me your question regarding the new rule issued by IRS on Monday, July 30, 2007.

The purpose of this rule is to develop a comprehensive list of valid websites used by EROs to prepare and e-file federal returns in order to guard taxpayers against phishing and pharming sites that may result identity theft. This rule applies to All authorized IRS e-file providers that obtain taxpayer information via the internet directly or through third parties in order to e-file federal returns. Taxpayer data is defined as any information that is obtained or used in the preparation of a tax return (e.g., Social security numbers, names, and addresses, dates of birth, income statements, and notes taken in a meeting).

The following EROs are not affected by this rule:

a.) EROs that do not have an internet website that obtain taxpayer information via the internet for the purpose of e-filing returns.

b.) EROs that do not have an internet website that obtain taxpayer information from a third party (not from the taxpayer directly) for the purpose of e-filing returns.

c.) EROs that only receive taxpayer data via e-mail.

d.) EROs that prepare returns and transmit their returns through third party transmitters

e.) EROs that prepare returns and use their providers website to e-file their returns (This site will be registered by the Provider)

Based on your description that you file your taxes through Tax Works, it does not appear that this rule applies to you.

We hope that this answers your question. For further information and the answers to additional questions about this rule please check the Frequently Asked Questions located on the IRS website or re-submit your question to this address. Please be as specific as possible to assist us in answering your question.

Justin J. McCarty , Sr. Program Analyst

Internal Revenue Service ID: 50-24246

Electronic Tax Administration - Strategic Planning Division

Relationship Management Office

Original e-mail inquiry to the IRS:

What is this all about????

I am a one person office. I go on line via either AOL, or internet explorer, and go to the E-services site and get information.

I e-file via my income tax software TAXWORKS. Do I have to have that for you? What is a portal? How do I encrypt? What is WINZIP9?

I am the only person here, I am the principal officer. Your notice says that an official must submit the excel spreadsheet and the password via separate e-mail messages.... what password?

[Pacun]

Are we on agreement that ATX is the one that needs to worry about this? Some of us would be affected if we have a website and we post a Mini organizer where clients submit their info. If clients email us the information, we have no problem.

Since I only use ATX for efile and I only receive information on emails from my clients (or in person), I DO NOT HAVE TO WORRY. Do we agree?

[redux]

I DO NOT HAVE TO WORRY. Do we agree?

YES!

[GeneInAlabama]

Are we on agreement that ATX is the one that needs to worry about this? Some of us would be affected if we have a website and we post a Mini organizer where clients submit their info. If clients email us the information, we have no problem.

Since I only use ATX for efile and I only receive information on emails from my clients (or in person), I DO NOT HAVE TO WORRY. Do we agree?

Pacun, I believe you are exactly right.

Gene

[GeneInAlabama]

This is a copy of an e-mail a colleague received from the IRS regarding the questions she submitted

Thank you Taxbilly for clearing this up for us.

Gene

[kcjenkins]

Yes, Bill, your post was extremely valuable, in fact, I added an icon to the post for that reason. Thanks again for your contributions here. You get a gold star in my book.

[preacher]

I just sent the IRS an e-mail to see If I would have to comply with this new rule. I don't think that I would, but it is better to get an answer from them.

[mcb39]

Taxbilly's post containing e-mail from IRS answered ALL of my questions. Thank you so very much. :)

[TAXBILLY]

Let's hope the "program specialist" knew what he was saying!

taxbilly

[jainen]

I wonder what the back story is. Some parts of the government are exceedingly interested in greater control over the Internet. The IRS, after pushing tax preparers into electronic filing and other business practices favorable to itself, has begun to express a lot of suspicion about how we go about our work. They are claiming this registration is a security measure against third-party attacks, but I can't believe that is the only purpose.

[TAXBILLY]

I wonder who decided to make the reporting requirement only ten days after the notice came out. Don't they know many go on vacation in August and may not even know about this until a few weeks from now?

taxbilly

[MAMalody]

Here is a questions I submitted to the IRS about a 3rd party backup system (such as Mozy) and their answer.

Question: If you use an online backup system to protect against data loss is the a URL that is required to be used. This URL does not provide any data collection from clients nor does it assist in the preparation or transmission of tax returns.

Answer (canned at that); Dear Michael

Thank you for sending me your question regarding the new rule issued by IRS on Monday, July 30, 2007.

The purpose of this rule is to develop a comprehensive list of valid websites used by EROs to prepare and e-file federal returns in order to guard taxpayers against phishing and pharming sites that may result identity theft. This rule applies to All Authorized IRS e-file Providers that obtain taxpayer information via the Internet directly or through third parties in order to e-file federal returns. Taxpayer data is defined as any information that is obtained or used in the preparation of a tax return (e.g., Social security numbers, names, and addresses, dates of birth, income statements, and notes taken in a meeting).

The following EROs are not affected by this rule:

a.) EROs that do not have an internet website that obtains taxpayer information via the internet for the purpose of e-filing returns,

b.) EROs that do not have an internet website that obtains taxpayer information from a third party (not from the taxpayer directly) for the purpose of e-filing returns

c.) EROs that only receive taxpayer data via e-mail

d.) EROs that prepare returns and transmit their returns through third party transmitters

e.) EROs that prepare returns and use their Providers website to e-file their returns (This site will be registered by the Provider)

Based on the information you provided, you do not have a website that gathers taxpayer data for the purpose of e-filing tax returns and appear to only transmit your returns through a third party provider, it does not appear as if this rule applies to you and you are not required to send us any further information or data.

We hope that this answers your question. For further information and the answers to additional questions about this rule please check the Frequently Asked Questions located on the IRS website or, if you need further clarification related to your original question, please re-submit your question to this address. Please be as specific as possible to assist us in answering your question.

=====================================================

While this is a canned response, I am going to keep it in my files, just in case.

[preacher]

Here is a questions I submitted to the IRS about a 3rd party backup system (such as Mozy) and their answer.

Question: If you use an online backup system to protect against data loss is the a URL that is required to be used. This URL does not provide any data collection from clients nor does it assist in the preparation or transmission of tax returns.

Answer (canned at that); Dear Michael

Thank you for sending me your question regarding the new rule issued by IRS on Monday, July 30, 2007.

The purpose of this rule is to develop a comprehensive list of valid websites used by EROs to prepare and e-file federal returns in order to guard taxpayers against phishing and pharming sites that may result identity theft. This rule applies to All Authorized IRS e-file Providers that obtain taxpayer information via the Internet directly or through third parties in order to e-file federal returns. Taxpayer data is defined as any information that is obtained or used in the preparation of a tax return (e.g., Social security numbers, names, and addresses, dates of birth, income statements, and notes taken in a meeting).

The following EROs are not affected by this rule:

a.) EROs that do not have an internet website that obtains taxpayer information via the internet for the purpose of e-filing returns,

b.) EROs that do not have an internet website that obtains taxpayer information from a third party (not from the taxpayer directly) for the purpose of e-filing returns

c.) EROs that only receive taxpayer data via e-mail

d.) EROs that prepare returns and transmit their returns through third party transmitters

e.) EROs that prepare returns and use their Providers website to e-file their returns (This site will be registered by the Provider)

Based on the information you provided, you do not have a website that gathers taxpayer data for the purpose of e-filing tax returns and appear to only transmit your returns through a third party provider, it does not appear as if this rule applies to you and you are not required to send us any further information or data.

We hope that this answers your question. For further information and the answers to additional questions about this rule please check the Frequently Asked Questions located on the IRS website or, if you need further clarification related to your original question, please re-submit your question to this address. Please be as specific as possible to assist us in answering your question.

=====================================================

While this is a canned response, I am going to keep it in my files, just in case.