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e-file Made Easy - A Tax Professional's One-Stop e-file & e-Pay Shop

 

Table of Contents

Overview

e-Pay - EFTPS, Electronic Funds Withdrawal (EFW) & Credit Card Payment Options

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 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 240,000+ 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 October 2007 - 80 million tax returns, almost 60 percent of all returns, were filed electronically. 57 million returns came from tax professionals. Taxpayers filed more than 22 million from home computers.

File Your Clients' Income Tax Returns Electronically

Individual filers are encouraged to check into Free File . IRS is committed to using technology to make tax filing easier, including filing electronically and using services available on IRS.gov.

Remember, there's more to e-file than 1040's. Business e-file is available year-round. Check out IRS e-file for business returns - More than 8 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 IRS 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!

  • The IRS is making it easier than ever for you to take care of your clients’ taxes electronically.
  • Preparers who’ve switched to IRS e-file say it was well worth it.
  • IRS e-file and e-pay can help create loyal, satisfied clients.

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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 800 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. Electronic Filing

IRS e-file - Key Messages for Tax Professionals

The e-services program is a suite of Web-based products that allow 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.

Register for e-services today.

Authorized e-file Providers who are active participants in the IRS e-file program and who e-file five (5) or more accepted individual or business tax returns in a calendar year can use the following premium e-services 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.

Registered e-services users also have access to the new electronic e-file application feature. 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 IRS e-file application.

Note: Beginning May 2007, Reporting Agents who have on file an Accepted Form 8633 Application to Participate in IRS e-file Program will automatically be permitted to use Electronic Account Resolution (EAR) and Transcript Delivery System (TDS). Refer to News from RAF for more information.

Note: Beginning November 1, 2007, Circular 230 practitioners who qualify as attorneys, certified public accountants, or enrolled agents will gain unlimited access to three e-Services products upon completion and acceptance of an online e-file application.

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ERO Record Keeping Requirements
Electronic Return Originators may electronically image and store all paper records they are required to retain. Additional information can be found in Publication 1345.

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Additional Features & Benefits of IRS e-file

Fed/State e-file -
State e-file Mandate Information
The States of California, West Virginia, Michigan, Minnesota, Utah, Wisconsin, Oklahoma, Rhode Island, Connecticut, Alabama, Massachusetts, New Jersey, New York and Virginia have mandated 1040 e-file.

The charts also provide 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.

Federation of Tax Administrators (FTA) - updated personal income tax (PIT) matrix displaying a state-by-state comparison of efile/epay options and the latest mandate information. The matrix also indicates whether a state is considering imposing an e-file mandate on tax preparers.

Practitioner PIN Method for e-file
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.

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What's in it for My Clients?

Individuals - Form 1040 Filers

  • 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.
  • Self-Select PIN Method for e-file
    The self-select PIN method allows your clients to electronically sign their e-filed return by selecting a five-digit PIN. It eliminates the requirement for Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return, in most cases, making e-filing returns truly paperless!
  • 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

Step 1 - Apply

Register for e-services to use the new electronic e-file application feature to participate in individual and business e-file programs. Don't delay. Approval may take up to 45 days.

Submitting a New or Revised 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 e-file application 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).

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.

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.

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, (Rev. 11-2004) Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns.

Publication 3112 (Rev. 11-2004), IRS e-file Application & Participation

Revenue Procedure 2005-60
For the individual and business e-file programs - published in Internal Revenue Bulletin (IRB) 2005-35.

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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.

Don't forget about your business clients. Remember, IRS e-file is not just for Form 1040's !
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.

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 (Rev. 11-2004).

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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Advertising & Promotion - IRS e-file & EFTPS

  • Marketing Toolkit
    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. Includes the 2008 Refund Cycle Chart.
  • EFTPS - Marketing Materials for Tax Practitioners
    Use these materials to help your individual and business customers understand and reap the benefits of this safe, easy and efficient way to pay their taxes.
  • EFTPS Tool Kit
    Tax professionals can order free Electronic Federal Tax Payment System (EFTPS) marketing materials and enrollment forms directly from the Internet.
  • 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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How to Stay On Top of it All - Valuable Resources!

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Other Sources of Information to Help You Stay on Top of it All

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LIBRARY

Individual, Form 1040 e-file

Revenue Procedure 2005-60
For the individual and business e-file programs - published in Internal Revenue Bulletin (IRB) 2005-35

Publication 3112, IRS e-file Application & Participation (Rev 11-2004)

Publication 1345 (Rev 11-2004) Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns

Publication 1345A (Rev. 12-2006), Filing Season Supplement for Authorized IRS e-file Providers (available in web based format only)

IRS e-file Application & Publication News

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Business e-file Library

Rev. Proc. 2007-40 , 2007-26 I. R. B ., published June 25, 2007, supersedes Rev Proc 2005-60, 2005-35 I.R.B. 449.

Revenue Procedure 2007-40 informs Authorized IRS e-file Providers (Providers) of their obligations to the Internal Revenue Service, taxpayers, and other participants in IRS e-file . A new section 9 provides that the IRS may deny an application to participate in IRS e-file or revoke a Provider's participation in IRS e-file if the firm, a Principal, or Responsible Official has been enjoined from filing returns because of a Federal or State court order or injunction or other legal action that prevents participation in IRS e-file . In such cases the denied applicant or Provider will not be entitled to seek administrative review of the denial under the procedures set out in the revenue procedure.


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 4164, Modernized e-File (MeF). Guide for Software Developers and Transmitters.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

Rev. Proc. 2007-51 Reprinter from IR Bulletin - dates July 23, 2007 (and containing copies of Forms 4419, 4804, 8508, 8809, Notice 210, and instructions for Forms 1099, 1908, 5498, and W-2G for taxpayers' use)

Publication 1120 for tax year 2005 - IRB 2005-31 - Revenue Procedure 2007-51

Publication 1220, Specifications for Filing Forms 1098, 1099, 5498 and W-2G Magnetically or Electronically

Filing Information Returns Electronically (FIRE) for Business Return Filers

Publication 1582, Information Returns Vendor List

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Payment Options

Publication 3611, IRS e-file Electronic Payment Options Brochure

EFTPS LIBRARY

Publication 966 - The Secure Way to Pay Your Federal Taxes

Publication 4320 - EFTPS Toolkit

Publication 4132 - As Easy as 1 2 3

Publication 4275 - Express Enrollment for New Businesses

 

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Other Useful Tax Practitioner Products

Basic Tools for Tax Professionals
Information you need to file returns for your clients

Online EIN Application - Form SS-4 Employer Identification Number

Disaster Relief Resource Center for Tax Professionals

Electronic IRS Page

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e-file for Business - Because there's more to IRS e-file than Form 1040!

  • 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.
  • 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.
  • 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

  • Where's My Refund?
    Your clients can look up the status of their refund online.
  • Refund Cycle Chart for 2008
    This handy chart provides expected refund dates for electronically filed returns.
  • Undeliverable 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 can report fraudulent or abusive returns, including those with questionable Forms W-2, to the IRS by completing Form 3949-A and mailing it or a letter with similar information to Internal Revenue Service, Fresno, CA 93888.

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Page Last Reviewed or Updated: March 20, 2009