ERO's and the new preparer review testing...

[taxguy057]

Hey can anyone look at this and make sense out of it? Now in order for any of us to efile a return, we must be ERO's correct? So how are they going to tell if we are just sending a return somebody else did or actually prepared the return ourselves? We have to put our names and numbers on the returns. We're already registered and have PTIN's so why are we not exempt from this forthcoming fiasco....

Please read below from IRS website:

Will Electronic Return Originators (EROs) who only transmit tax returns and do not prepare returns be subject to the new review recommendations?

Although individuals who assist in the transmission of tax returns electronically are subject to other IRS rules and regulations currently, individuals who assist in the transmission of tax returns electronically, but do not prepare returns for compensation, are not the focus of the recommendations in the report.

[chuck]

Believe you would only sign the 8879 and not page 2 of the 1040.

[taxguy057]

Believe you would only sign the 8879 and not page 2 of the 1040.

I guess b/c I prepare returns and efile them I just never did just an efile. I'm wondering since we are already registered as ERO's we just have to take the test? Anybody else take on this? :scratch_head:

[Pacun]

An immigration attorney has a local radio program and for the last 10 years, people have been calling asking if they will qualify for the Immigration reform, he replies, "let's wait for the recommendation to become law and the we will comment about it". I think the same answer could apply here if I understand the concern properly.

[mcb39]

I guess b/c I prepare returns and efile them I just never did just an efile. I'm wondering since we are already registered as ERO's we just have to take the test? Anybody else take on this?

I have had other preparers bring their returns to me to efile. However, I con't see how you would get to be an ERO if you weren't going to prepare returns also.

[taxguy057]

An immigration attorney has a local radio program and for the last 10 years, people have been calling asking if they will qualify for the Immigration reform, he replies, "let's wait for the recommendation to become law and the we will comment about it". I think the same answer could apply here if I understand the concern properly.

Great analogy... I got cha! :)

[taxguy057]

I have had other preparers bring their returns to me to efile. However, I con't see how you would get to be an ERO if you weren't going to prepare returns also.

my point exactly! :dunno:

[Pacun]

I do not transmit for other preparers because I believe if something is wrong with their returns, the ERO (ME) will be blamed. Let's say I trasmitted 500 returns, 400 that I prepared and 100 from another preparer. If all my returns are flawlessly and 20 returns from the other preparer are with mistakes, I bet that me efile record will not be straight.

It is a good subject but since there is no law yet and it is not exactly aimed to the whole preparer community, that's why I said that we are doing like the immigration attorney. Of course I love when there is something to read on this forum. By all means please bring in any tax related matters to the table (I mean to the forum).

[elfling]

We do not find any practicality in submitting other preparer's or even self-prepared returns. Is there a way to do so as an ERO, using ATX, without having to totally load (virtually prepare) the return? If the customer's objective is to save money by preparing the return themselves, we simply cannot offer them that savings. Having to enter all the tp info into the program equals preparing the return and we will have to charge accordingly.

Elfling

[taxguy057]

We do not find any practicality in submitting other preparer's or even self-prepared returns. Is there a way to do so as an ERO, using ATX, without having to totally load (virtually prepare) the return? If the customer's objective is to save money by preparing the return themselves, we simply cannot offer them that savings. Having to enter all the tp info into the program equals preparing the return and we will have to charge accordingly.

Elfling

You have basically put into to words better than I could put it when I started this discussion... We basically are preparing the returns already either way you look at it! :read:

[mcb39]

We do not find any practicality in submitting other preparer's or even self-prepared returns. Is there a way to do so as an ERO, using ATX, without having to totally load (virtually prepare) the return? If the customer's objective is to save money by preparing the return themselves, we simply cannot offer them that savings. Having to enter all the tp info into the program equals preparing the return and we will have to charge accordingly.

Elfling

There is no practicality in it. And, there is no easy way to do it. Have only done it occasionally as a paid favor for friend; less than one a year. Which takes us back to the original question; where is the sense in the statement from the IRS website?

[taxguy057]

There is no practicality in it. And, there is no easy way to do it. Have only done it occasionally as a paid favor for friend; less than one a year. Which takes us back to the original question; where is the sense in the statement from the IRS website?

Looking at it glass full, no exam!! well at least not for 3yrs. There was another statement on the site that said they have 3 years to implement the registration and issuing of PTIN's and that testing would not take place til all of this was taken care of in the alloted time frame.