E-File Task Force Brings seminars to chapters

By Barry Doll, Manhattan/Bronx Chapter President-Elect

On Jan. 6, over 60 chapter members attended a three-hour seminar at PricewaterhouseCoopers on electronic services, sponsored by the Manhattan/Bronx Chapter in conjunction with the E-File Task Force of the New York State Society of CPAs’ Tax Division Executive Committee.

Lillie Davenport, a senior tax specialist for the IRS, and John Barovich, a taxpayer services representative from the New York State Department of Taxation and Finance, were featured speakers. Fred Slater, from the Society’s E-File Task Force, led the discussion and provided practitioner feedback as an e-filing user.

Davenport emphasized the IRS’ promotion of e-filing as the simplest and quickest way to file returns. According to the Service, over 51 million tax forms were filed last year by individuals using e-filing.

Many returns, such as Employment Taxes, Forms 940 and 941; Estates & Trusts, Form 1041; Individuals, Form 1040; and Partnerships, Form 1065, are currently available on the system. Additional returns will be available via e-file soon; Forms 1120 and 1120S were scheduled for release in mid-February.

Any person, including a corporation, partnership, individual, estate or trust, who is required to file 250 or more information returns must use Filing Information Returns Electronically (FIRE), Davenport said in her presentation. FIRE accepts forms 1099, 1098, 5498, W-2G, 1042-S, 8027 and Questionable W-4.

As of January 2004, the IRS offers those who meet the qualifications a Federal Tax Deposit penalty refund of up to $1,000 for using Electronic Federal Tax Payment System (EFTPS). Furthermore, all businesses receiving a new EIN that have federal tax obligation will be automatically pre-enrolled in EFTPS to make all their Federal Tax Deposits, according to Davenport.

Seminar attendees learned about various IRS services, including Quick Alerts, a service available 24 hours a day, seven days a week at no cost. Quick Alerts sends messages to a defined audience to inform them of alert messages, IRS e-file and service center messages and general notifications as they happen. Tax Talk Today is another free service of the IRS. It offers monthly real-time Internet interaction featuring tax experts, professionals and IRS representatives. It also includes an opportunity to earn CPE credits. You can register at www.taxtalktoday.tv.

Following Davenport’s report, Barovich covered some highlights and benefits of the personal income tax e-file program. In addition to the assurance of 24-hour acknowledgement from New York state that your return was accepted or rejected, e-file also offers increased convenience. For example, you can become an Electronic Return Originator (ERO) by being accepted into the IRS e-file program, or there is a one-time-only application with New York State Tax (TR-584 MN). Once accepted, you only need to notify NYS if there are any changes to your business information.

In addition to added Web services, like income tax refund status inquiry, e-filing claims to save time and space while maximizing efficiency and accuracy.

According to Maryann Winters, current vice-chair of the E-File Task Force, 14 out of 17 chapters have held similar three-hour structured programs. After filing season winds down, Winters “expects these programs to continue for at least another year as chapter interest increases and the number of programs grows.”

Barry Doll can be reached at barry.doll@us.pwcglobal.com.