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Summer/Fall 2011 HowardNews

Time is running out for paid preparers. Mandatory e-file and mandatory registration are now in full force, so you should understand the rules and get prepared now because IRS approvals can be slow. You'll need this software to e-file any returns with Tax Preparer.

Mandatory e-fle 101. The popular belief that those who prepare more than 10 returns in 2012 will be required to e-file them all is a gross overstatement of the facts. In this issue we break down the final regulations so you can determine whether or not you are required to e-file returns. And even if you are theoretically required to e-file all returns, we explain which returns you can or must file on paper instead, and what you must include when filing those returns.

Mandatory registration 101. Unlike the e-file requirements, the registration requirements are absolute. No matter how few returns you prepare for pay, you must register with the IRS. Your active PTIN (preparer tax id number) is proof that your registration is active, but it now expires every year. You must now renew annually for a $64.95 per year fee. Even CPAs, attorneys, and enrolled agents are subject to this requirement. In this issue, we explain the regulations and give you information on the background checks, competency testing, and continuing education requirements that will be phased in over the next two years.

New to e-file. If you haven't e-filed in the past, we provide guidance on the IRS application process, what you must purchase from HowardSoft, and how e-file works with Tax Preparer.