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Table of Contents
Overview
e-Pay - EFTPS, Electronic Funds Withdrawal (EFW) & Credit Card Options
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Electronic Federal Tax Payment System (EFTPS),
What's In it for Me?
What's In it for my Clients?
IRS e-file Application Process
IRS e-file & e-Pay - Advertising, Promotion, Market Research, Filing Statistics & More
Additional e-file & e-Pay Resource Information
Introduction
Welcome! You've taken an important first step on your way down the well-traveled road to e-file success. If you've ever wondered how to get started in IRS e-file or take advantage of convenient electronic payment options, then you're in the right place.
The concept for the e-file Made Easy Web site resulted from a recommendation made by the Taxpayer Advocacy Panel (TAP). TAP is a group of independent citizens appointed by the United States Department of Treasury to be listening posts for the Treasury for feedback on how to improve the operations and image of the IRS.
It was clear to the TAP group that many tax professionals and individuals did not have accurate, up-to-date information about the many features and benefits electronic filing provides to tax preparers, citizens, corporations and foundations.
As a result, this site was designed by the IRS to provide users with an easy to follow, one-stop resource center for IRS e-file and e-payment information. We hope the information contained on this Web site is just what you've been looking for. It was developed specifically for tax professionals like yourself who are interested in offering IRS e-file to their individual and business clients, as well as the 160,000+ tax professionals who are already delivering the benefits of e-file to their customers.
We've included everything you'll need to get started in IRS e-file and e-pay as well as links to a wealth of information that will help keep you up-to-date. We sincerely hope this site will be helpful to you as you make the transition to electronic filing using IRS e-file and e-pay for your individual and business clients.
Remember to bookmark this page, because now that you've found it, we hope you'll come back!
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Overview
The Evolution of IRS e-file
Background/History of IRS e-file
Did you know the IRS e-file program began as a pilot in 1986 and has been available nationwide since 1990?
Where Are We Now?
As of August 27, 2004, 61 million individual income tax returns for tax year 2003 have been electronically filed representing a 15.8 percent increase over last year. The number of e-filed returns includes 42.7 million returns filed by tax professionals which equates to an impressive16.3 percent increase when compared to last year. These numbers will continue to grow through the August 15 extension deadline and the October 15 deadline for those seeking a second extension of time to file their 2003 return. "We saw continued strong growth in the e-filing program this year," said IRS Commissioner Mark W. Everson. "It seems safe to say that next year we will reach a milestone with half of all individual returns being processed electronically."
Don't forget about e-file for business returns - almost 7 million business tax returns have been filed electronically. This number also continues to grow with the launch of new electronic filing options for corporate and exempt organization returns.
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Why Offer e-file to Your Clients?
Don't go to the trouble of controlling every aspect of your client's returns only to risk losing control when they're mailed !
And, you don't have to just take our word for it. How about some straight talk from your peers? Hear how they like using IRS e-file and why they made the choice. Log on to EROSpotlight.com. A different Electronic Return Originator (ERO) is featured each month.
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The IRS is making it easier than ever for you to take care of your clients’ taxes electronically.
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Preparers who’ve switched to IRS e-file say it was well worth it.
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IRS e-file and e-Pay can help create loyal, satisfied clients.
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Still Not Convinced?
You can learn even more about IRS e-file by logging on to aboutefile.com. This entertaining and informative Web site is a part of the 2004 e-file marketing campaign and is directed to three customer segments ~ tax preparers, businesses and individuals.
Security of IRS e-file
Have you or your clients ever wondered about the Security of the IRS e-file System? Well, you can rest assured. More than 400 million tax returns have been filed electronically since 1986 with no security incidents.
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What's in it for Me?
Making a Business Case - Paper vs.. e-file
IRS e-file ~ Key Messages for Tax Professionals
e-services
If you e-file 100 or more accepted individual tax returns each year, you'll be eligible to use the following e-services incentive products.
- Electronic Account Resolution (EAR) - Allows tax professionals to expedite closure on their client's account problems by electronically sending/receiving account-related inquiries. Tax professionals may inquire about individual or business account problems, refunds, installment agreements, missing payments or notices. Tax professionals must have a power of attorney on file before submitting an inquiry. The IRS response will be delivered to a secure mailbox within 72 hours.
- Transcript Delivery System (TDS) - Use this system to request tax return transcripts, account transcripts and a record of account for your individual and business clients. Resolve your clients' account issues or problems quickly in a secure, online session. Tax professionals must have authorization on file with the IRS before accessing a client's account.
- Disclosure Authorization (DA) -Online POAs! Eligible tax professionals may complete authorization forms, view existing forms, and receive acknowledgement of accepted submissions immediately -- all online. Disclosure Authorization allows tax professionals to electronically submit Form 2848, Power of Attorney and Declaration of Representative and Form 8821, Tax Information Authorizations. This e-service expedites processing and issues a real-time acknowledgement of accepted submissions.
The e-services program is a suite of Web-based products that allows tax professionals and payers to do business with the IRS electronically. These services are available 24 hours a day, 7 days a week from just about any computer with an Internet connection.
Registered e-services users have access to the new electronic application feature for Form 8633, Application to Participate in the IRS e-file Program. The electronic e-file application allows your e-file application to be saved in progress, with an acknowledgement sent via email, and your electronic signature captured through the use of a PIN. You can also use the online application feature to view and revise/update information on your e-file application.
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Testimonials from e-file Providers
Are you interested in cutting your overhead costs and improving your efficiency? How about competitive advantage? If so, you'll want to read the testimonials from these IRS e-file Providers. Find out how e-file has improved their tax practices.
Media Options for Furnishing Taxpayer Copies of Returns
Save on paper and storage costs. In the past, these copies had to be furnished to taxpayers on paper. Now, electronic return originators (EROs) may provide this copy in any media, including electronic media, acceptable to both the taxpayer and ERO.
ERO Record Keeping Requirements
Electronic Return Originators may electronically image and store all paper records they are required to retain.
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Additional Features & Benefits of IRS e-file
Tax Professionals e-file Overview
What's New for e-file for Tax Year 2003? Questions and answers on signature alternatives, filing extensions, due dates for electronically filed returns and much, much more.
Electronic Signature Options - Practitioner PIN Method
The Practitioner PIN Method is an additional electronic signature option for taxpayers who use an Electronic Return Originator (ERO) to sign their return by entering a five-digit PIN.
State e-file Options
Here's a handy chart that provides a brief description of each of the fifty States' e-file options. Nine States have no income tax, and the rest have Fed/State e-file and/or Direct (stand-alone) State e-file programs. Did you know that the States of California, Michigan, Minnesota, Wisconsin and Oklahoma have already mandated 1040 e-file and Alabama and Virginia have legislation pending for 2005?
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What's in it for My Clients?
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48-Hour Acknowledgement = Peace of Mind. When you file your client's tax return electronically, you'll receive an acknowledgement within 48 hours that the IRS has received it.
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IRS e-file is even better than using registered mail.
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Individuals - Form 1040 Filers
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Federal/State e-file
The Fed/State e-file program allows e-filing of both federal and state income tax returns at the same time and is available in 37 States and the District of Columbia.
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Electronic Payment Options
Convenient, safe, and secure electronic payment options are available. Clients can e-file and e-pay their taxes in a single step.
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Business Return Filers
IRS e-file ~ Key Messages/Selling Points for your Business Clients
e-file for Business Programs
Payment Options for your Business Clients
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Ready to Participate? It's Easy ~ Just Follow these Steps
Begin by filling out Form 8633, Application to Participate in the IRS e-file Program, (includes the individual and business e-file programs). Don't delay. Approval generally takes 45 days. NEW ! Register for e-services to use the new Form 8633 online application feature.
Important Information for Submitting a New or Revised Form 8633, Application to Participate in the IRS e-file Program:
What Happens Next?
After your application has been processed and the suitability screening process has been completed, the IRS will assign an Electronic Filing Identification Number (EFIN) to you . If there are any problems with your application including your acceptance into the e-file program, you will be notified.
If you've indicated on your application, Form 8633, that you plan to transmit individual and/or business returns directly to the IRS, you will also be assigned an Electronic Transmitter Identification Number (ETIN). Transmitters of individual returns must complete Participants Acceptance Testing (PATS). PATS testing for individual returns is scheduled to begin November 9, 2004 for tax year 2004 returns.
Business return filers must complete Business Assurance Testing (BATS) and/or the Assurance Testing System (ATS) depending on the type(s) of business returns being transmitted. BATS is scheduled to begin December 6, 2004.
NOTE : An IRS e-file participant who functions only as an electronic return originator (ERO) is not required to complete PATS, BATS and/or ATS.
Participants Acceptance Testing (PATS) for Individual returns and Business Acceptance Testing (BATS) and/or the Assurance Testing Systems (ATS) for Business returns
PATS, and/or BATS and ATS is required of all Software Developers, Transmitters and Reporting Agents for the individual and/or business IRS e-file programs.
PATS testing for individual returns is scheduled to begin November 9, 2004 for tax year 2004 returns.
What if I have Questions?
If you have questions regarding the application and suitability screening process, contact the e-Help Desk at 1-866-255-0654 (toll-free).
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Step 2 - Review Important e-file Publications
Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns. New e-filers automatically receive copies of this document which contains Revenue Procedure 2000-31 and other official guidance.
Publication 1345A, Filing Season Supplement for Authorized IRS e-file Providers, is issued annually and contains important filing season information. Publication 1345A is automatically mailed to all electronic filers each year.
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Step 3 - Choosing Your Software & Software Shopping Guide
The IRS does not provide software but does issue specifications that commercial software developers use to write software packages that are available for purchase.
After you've been accepted to participate in the IRS e-file program, you'll need to purchase tax preparation software that supports individual and business e-file. You'll know you've been accepted into the IRS e-file program when you receive notification from the Andover Submission Processing Center. If you have questions, contact the IRS e-file Application and Suitability Help Desk, toll-free at 1-866-255-0654.
Remember IRS e-file is not just for Form 1040's. So don't forget your business clients. If you file business returns for your clients, be sure to ask your software company which business e-file programs they support.
Ensure your software also supports State e-filing for each state where your clients may have filing requirements. Here's a Software Developer List for Fed/State e-file.
The Federation of Tax Administrator's (FTA) Web site contains information regarding state mandated e-file as well as a summary of each state's individual and business e-file capabilities and future plans.
Shop Wisely
We've put together a handy Software Considerations/Shopping Guide which lists things you'll want to consider when choosing your e-file software.
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It's Your Choice
You can choose to either transmit returns through your software company (third-party transmitter) or you may transmit returns directly to the IRS. For more details, see Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns.
Finally, follow your software company's specific setup and testing procedures. If you have questions regarding your software, consult your software company's manual or customer support line.
The IRS also has an Authorized IRS e-file Provider Locator Service For Tax Professionals
This service allows you to identify and locate Electronic Return Originators (EROs), Transmitters, Software Developers, and Intermediate Service Providers through interactive database searches.
The "Authorized IRS e-file Provider" database is a nationwide listing of all businesses which have been accepted to participate in the electronic filing (IRS e-file) program.
This service allows you to Identify and locate different types of Authorized IRS e-file Providers through interactive searches (e.g., Electronic Return Originators (EROs), Transmitters, Software Developers, and Service Bureaus).
Plus, you can download comma delimited text files by state or region for creating mailing lists using data base software packages.
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Step 4 - Setting Up Your Office to Manage the e-file Workflow
Publication 4176 provides a suggested process for managing the e-file workflow in your office.
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Advertising & Promotion - IRS e-file & EFTPS
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Marketing Toolkit, IRS e-file Logo
Here's the online version of the popular Electronic Return Originators' (EROs) IRS e-file marketing toolkit. Includes the e-file Logo & Guidelines for its use.
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EFTPS Link Exchange
How to link to the Electronic Federal Tax Payment System (EFTPS) - Provide a link on your Web site so your clients can enroll and make payments through EFTPS.
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Market Research, Statistics & Taxpayer Usage Studies
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IRS e-file Market Research/Demographics
Discover the latest Attitudinal and Awareness research, Demographic research and Satisfaction Surveys for improved target marketing and taxpayer profiling.
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How to Stay On Top of it All - Valuable Resources!
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Sign up now for QuickAlerts Messaging System. QuickAlerts is a free online messaging system that disseminates mass e-file messages, within seconds, to all "subscribed" individual and business e-file software developers, transmitters and Authorized IRS e-file Providers.
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2004 IRS Nationwide Tax Forums Summer 2004 - Don't miss this annual event! And now you can even register online. Hear the latest information on IRS e-file as well as other IRS programs. CPE Credits Offered.
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Tax Talk Today is dedicated to providing continuing education and information for tax practitioners. This series of monthly 60-minute webcasts covers current issues of interest to the tax professional community. You can participate live or review the archived programs.
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Make it a part of your daily routine to visit the IRS.gov Web site, including the e-file for Tax Professionals page for the latest information. Just click on the e-file logo, or type in ERO in the Keyword search box.
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Other Sources of Information to Help You Stay on Top of it All
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Tax Professionals e-file Overview
What's New for e-file for Tax Year 2003? Questions and answers on signature alternatives, filing extensions, due dates for electronically filed returns and much more.
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IRS Newswire
Subscribe to the IRS Newswire to receive news releases via E-mail from the IRS National Media Relations Office in Washington, DC. An average of two to three news releases are issued each week. Topics cover the entire range of tax administration, including tax law changes, filing season updates, statistics and more.
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LIBRARY
Individual, Form 1040 e-file
Publication 3112, e-file Application Package
Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns
Publication 1345A, Filing Season Supplement for Authorized IRS e-file Providers
Revenue Procedure 2000-31 for the IRS e-file Program
IRS e-file Application & Publication News
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Business e-file Library
Publication 3823, Employment Tax e-file System Implementation & User Guide (Forms 940 & 941)
Publication 4163, Modernized e-File Information for Authorized IRS e-file Providers of Forms 1120/1120S
Publication 4206, Modernized e-File Information for Authorized IRS e-file Providers for Exempt Organization Filings (Form 990/99EZ,8871, 8872 and 1120POL)
Publication 1524, Procedures for the 1065 e-file Program, U.S. Return of Partnership Income
Publication 1437, Procedures for Electronic Filing of U.S. Income Tax Return for Estates & Trusts, Form 1041
Publication 1220, Specifications for Filing Forms 1098, 1099, 5498 and W-2G Magnetically or Electronically
Publication 1582, Information Returns Vendor List
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Payment Options
Publication 3611, IRS e-file Electronic Payment Options Brochure
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Publication 966 - Electronic Choices for Paying All Your Federal Taxes
Publication 3425 - 4 Easy Ways to Use EFTPS for Tax Practitioners, Accountants, and Payroll Companies
Publication 3806 - The Easiest Way to Pay Your Federal Taxes for Individual Taxpayers
Publication 4066 - About EFTPS...Frequently Asked Questions (FAQs)
Publication 4132 - As Easy as 1 2 3
Publication 4276 - Express Enrollment for New Businesses
Publication 4048 - EFTPS Special Penalty Refund Offer
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Other Useful Tax Practitioner Products
2003 Tax Products CD-ROM
Online Application - SS-4, Employer Identification Number (EIN)
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e-file for Business - Because there's more to IRS e-file than Form 1040!
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Products
Electronic filing and payment options for business and self-employed taxpayers including returns for partnerships, corporations, estates and trusts, information returns, employment taxes, and.charities and non-profits.
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Providers
Tax professionals and business taxpayers may find a listing of companies who offer IRS e-file for Business products and services. The listing of Approved IRS e-file for Business Providers contains addresses and phone numbers including links to their Web sites.
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Partners
The IRS has partnered with various private industry companies to bring you special offers and discounts for using their e-file and payment option products.
Refunds
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Electronic Payment Options
Electronic payment options are convenient, safe and secure methods for paying taxes. If your clients have a balance due return, they can e-file and pay in a single step by authorizing an electronic funds withdrawal (direct debit) from their bank account. Self-employed filers can also pay by credit card.
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Phone Numbers - e-Help Desk & More
Who can I call for answers to non account-related questions regarding IRS e-file and e-services products?
Contact the e-Help Desk toll-free at 1-866-255-0654.
What do I do if I suspect fraud and/or abuse on a return I've been asked to prepare and file electronically?
Reporting fraud and/or abuse within the IRS e-file program
IRS e-file providers should report fraudulent or abusive returns, including those with questionable Forms W-2, to the IRS by calling 1-800-829-0433, or by emailing the information to HQ-ORF@ci.irs.gov.
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