First Time Efiler

[Philip1117]

I do around 1200 1040 tax returns, have done returns for 10+ years. This will be the first tax season we will efile. How steep is the learning curve and what if anything should we watch out for?

Thanks

Phil

[grandmabee]

I do around 1200 1040 tax returns, have done returns for 10+ years. This will be the first tax season we will efile. How steep is the learning curve and what if anything should we watch out for?

Thanks

Phil

Update your program every morning. You will have to enter the full information from W-2's, 1099R's etc. which will take extra time the first year then they carry over. In the second year you will find it saves a lot of time on copying returns and envelopes. It does take time to get the hang of it but with 1200 returns you should be going good after the first month. It's also going to be new for the clients so that will take time going over that with them also.

[Catherine]

Update your program every morning. You will have to enter the full information from W-2's, 1099R's etc. which will take extra time the first year then they carry over. In the second year you will find it saves a lot of time on copying returns and envelopes. It does take time to get the hang of it but with 1200 returns you should be going good after the first month. It's also going to be new for the clients so that will take time going over that with them also.

In addition to the above, you MUST get the e-file authorization forms signed by the client, and you must hang on to those for 3 years (you sign them, too). I have one file folder per year kept (in a bright color, in the front of the closest file drawer), each year the rear-most gets pulled, shredded, and then put (empty) in front of the others.

Also, before you get the client copy printed, create (and then later delete if it's created) the e-file - doing that runs a whole second set of diagnostics looking specifically for nit-picky tidbits required or recommended for e-file. The federal e-file won't create without a "date signed" field filled in, but some of the states will, and you don't want to submit them by accident.

[BulldogTom]

I cannot imagine doing 1200 returns and not e-filing. All that extra printing, envelopes, mailing. The program can be a pain with the "nit picky" stuff, but it gets to be a normal routine. I have been e-filing since 2000 and would never go back.

Tom

Lodi, CA

[mcb39]

I cannot imagine doing 1200 returns and not e-filing. All that extra printing, envelopes, mailing. The program can be a pain with the "nit picky" stuff, but it gets to be a normal routine. I have been e-filing since 2000 and would never go back.

Tom

Lodi, CA

Neither would I go back. I have been e-filing since I had to do my family for free because nobody would pay the price to e-file and I didn't want to lose my EFIN. Times have sure changed and I believe that ATX was one of the pioneers in offering free e-filing as part of their packages. I am grateful that they did.

[jainen]

>>what if anything should we watch out for?<<

Train one of your clerical staff to take the lead; don't let the tax preparers e-file directly. Don't bother with the IRS seminars that mostly focus on registration. Just print out Pub 1345 and whatever instructions your software gives. She will quickly become the expert, making sure all forms are signed, Form 8453 with attachments sent in, file status updated, etc. Even more important, she will check the ACKS (IRS and state acknowledgments) every morning, and will easily fix SSN/EIN problems and everything else.

[mcb39]

That doesn't work when you are a one-person office as many of us are. Although, with 1200 returns, I would imagine that the person who started this thread probably does have some help.

[Philip1117]

In addition to the above, you MUST get the e-file authorization forms signed by the client, and you must hang on to those for 3 years (you sign them, too). I have one file folder per year kept (in a bright color, in the front of the closest file drawer), each year the rear-most gets pulled, shredded, and then put (empty) in front of the others.

Also, before you get the client copy printed, create (and then later delete if it's created) the e-file - doing that runs a whole second set of diagnostics looking specifically for nit-picky tidbits required or recommended for e-file. The federal e-file won't create without a "date signed" field filled in, but some of the states will, and you don't want to submit them by accident.

Thanks for the tips. Don't quite understand the last paragraph.

Phil

[Philip1117]

That doesn't work when you are a one-person office as many of us are. Although, with 1200 returns, I would imagine that the person who started this thread probably does have some help.

Some help not much. Has been hard to find reliable people.

Phil

[BulldogTom]

Thanks for the tips. Don't quite understand the last paragraph.

Phil

In ATX (and all software, I believe) you will have to create the electronic version of the tax return. When you have finished the return, you click on create e-file. The software will then perform a diagnostic looking for anything in the tax return that will cause a rejection. If there is such an item, it will need to be fixed prior to send the electronic return.

Some of us have learned the hard way that you should always complete this step before you print out the client's copy, because if the client has left when you run this step, invariably you will find something that is wrong with the return and need to get the client back in to fix it.

Tom

Lodi, Ca

[Margaret CPA in OH]

My method has been to complete the return, run the regular diagnostics, make any corrections needed then without putting in the date signed on Form 8879, create the efile. This will assign a DCN (declaration Control Number), run the diagnostics and give you the notice that the date of signature must be input. Then I create a pdf to send with a password to my clients (virtually no one does this in my home office) and instruct the client to review the returns, print out the 8879, sign and fax or mail to me. They could also scan and email but I always warn that it should be encrypted or protected somehow. They can also upload to my website if comfortable (it is secure but a bit more complicated than faxing).

When I receive the signed 8879, I input the date signed and recreate the efile and send. I also update several times daily for reasons stated earlier.

Fro 2009 tax year, I also stated with the emailed return that I would not be sending a paper return unless specifically requested. I do, however, send Form 9325 showing the date received by IRS and how to contact IRS with issues of delay, etc. I also send my bill at that time because, although my engagement letter states that payment is due upon receipt of the return, I bill when it is accepted. But that's me...

[Philip1117]

In ATX (and all software, I believe) you will have to create the electronic version of the tax return. When you have finished the return, you click on create e-file. The software will then perform a diagnostic looking for anything in the tax return that will cause a rejection. If there is such an item, it will need to be fixed prior to send the electronic return.

Some of us have learned the hard way that you should always complete this step before you print out the client's copy, because if the client has left when you run this step, invariably you will find something that is wrong with the return and need to get the client back in to fix it.

Tom

Lodi, Ca

Thanks now its clear.

Phil

[Philip1117]

My method has been to complete the return, run the regular diagnostics, make any corrections needed then without putting in the date signed on Form 8879, create the efile. This will assign a DCN (declaration Control Number), run the diagnostics and give you the notice that the date of signature must be input. Then I create a pdf to send with a password to my clients (virtually no one does this in my home office) and instruct the client to review the returns, print out the 8879, sign and fax or mail to me. They could also scan and email but I always warn that it should be encrypted or protected somehow. They can also upload to my website if comfortable (it is secure but a bit more complicated than faxing).

When I receive the signed 8879, I input the date signed and recreate the efile and send. I also update several times daily for reasons stated earlier.

Fro 2009 tax year, I also stated with the emailed return that I would not be sending a paper return unless specifically requested. I do, however, send Form 9325 showing the date received by IRS and how to contact IRS with issues of delay, etc. I also send my bill at that time because, although my engagement letter states that payment is due upon receipt of the return, I bill when it is accepted. But that's me...

Very slick, I will try this as well. Most of my clients are over 60. So I'll see how many are computer savy.

Phil

[jainen]

>>Has been hard to find reliable people<<

Hmmm, can't rely on people in your town? I would guess it's the nature of the job, not your neighbors' personalities. Some few fanatics like us enjoy tax work, but most people don't rate it high on their list. Besides, nobody pays the clerks more than $15 with no benefits, and that just isn't enough to run a household on. So the only people who CAN take the job are living half underground, sharing rooms and scamming food stamps. And since we don't offer any long-term commitments, we only get people who can't hold a job anyway.

Which is why the small office and solo practitioners provide MUCH higher quality than the guys who advertise on TV.