Jump to content
ATX Community

Just E filing a self prepared tax return.


TAG

Recommended Posts

I got into a slightly heated discussionwith my new partner's son, who is a preparer.  A remodeling 
Sch C (not a current client) called and asked if we would E file his self prepared 2019 tax return.  I asked and he stated that he self prepared the return and could not E-F the return in Jan (I suspected that IRS had shut down E-F then) and the reason he wanted it E-F was because he was going after Small Bus "free money".  The son said we can't do it because we had to prepare the return.  I asked him and he said it was part of the ERO requirements.  I think he was suspecting fraud and I told him to prepare an engagement letter stating we were only E filing a self prepared return and have the persp client sign it.

  I know I've gotten too old.  But I'm curious, who's correct?

 

 

 

Link to comment
Share on other sites

51 minutes ago, BulldogTom said:

I don't know for sure if what the IRS rule is, but in my office we don't send it if we did not prepare it.   Period.   End of discussion.  So I don't care what the IRS rule is.

That does not help you, I am sorry.   Just putting an opinion out there.

Tom
Modesto, CA

Same here!!!!

  • Like 1
Link to comment
Share on other sites

18 hours ago, TAG said:

The son said we can't do it because we had to prepare the return.  I asked him and he said it was part of the ERO requirements.  I think he was suspecting fraud and I told him to prepare an engagement letter stating we were only E filing a self prepared return and have the persp client sign it.

  I know I've gotten too old.  But I'm curious, who's correct?

 

The answer is on page 15 o Pub 3112 that I quoted shown below, but like the others have said, I wouldn't do it either. First, how are you going to get the return into your system without preparing it, even if it is mostly just data entry? Second, what exposure do you have if you spot things that are clearly in error , especially if you suspect intentional disregard of the tax law?

 

Quote

An Electronic Return Originator (ERO) is the Authorized IRS e-file Provider that originates the electronic submission of a return to the IRS. The ERO is usually the first point of contact for most taxpayers filing a return using IRS e-file.
The Origination of an Electronic Return
Although an ERO may also engage in return preparation, that activity is separate and different from the origination of the electronic submission of the return to the IRS. An ERO originates the electronic submission of a return after the taxpayer authorizes the filing of the return via IRS e-file. An ERO must originate the electronic submission of only returns that the ERO either prepared or collected from a taxpayer.

An ERO originates the electronic submission by either of the following:
■ Electronically sending the return to a Transmitter that will transmit the return to the IRS
■ Directly transmitting the return to the IRS
■ Providing a return to an Intermediate Service Provider for processing prior to transmission to the IRS In originating the electronic submission of a return, the ERO has a variety of responsibilities, including, but not limited to the following:
■ Timely originating the electronic submission of returns
■ Submitting any required supporting paper documents to the IRS
■ Providing copies to taxpayers
■ Retaining records and making records available to the IRS
■ Accepting returns only from taxpayers and Providers
■ Having only one EFIN for the same firm for use at one location, unless the IRS issued more than one EFIN to the firm for the same location. For this purpose, the business entity is generally the entity that reports on its return the income derived from electronic filing. The IRS may issue more than one EFIN as it determines appropriate.

 

  • Like 2
Link to comment
Share on other sites

Back in the day when I worked at H&RB and efile was new and not many were doing it yet, we did electronically file self-prepared returns.  I don't know if they still do so.  It is definitely not cost-effective.  You have to enter the entire return but don't get paid for tax prep.  Often there were errors that wouldn't allow efile, so many of those clients converted to tax prep clients.  Maybe that was the point.  On the opposite end of the spectrum, at the CPA firm where I work now we have a few clients who only want us to prepare their Sch C.  We do that and charge for the work involved.

Link to comment
Share on other sites

The preparer signs the return as the preparer. Then the taxpayer takes the return to you or another preparer to e-file; that person signs as ERO.

Years ago at Block, we could e-file a return brought in by a taxpayer and signed by a preparer. We could offer NO advice at all, or that could make us a preparer. HRB really stressed to us that we could do the data entry to exactly match the paper return and e-file only and not make any corrections or offer any advice or treat it anything like tax preparation at all. We'd enter the return as delivered to us. If there were errors, we could not e-file and also could NOT tell the taxpayer how to correct. We could only tell the taxpayer there were errors and to go back to his preparer (including if he self-prepared). If he wanted to pay us to PREPARE his return, we would do that and e-file.

Since going out on my own, I will NOT e-file a return prepared by another.

  • Like 2
Link to comment
Share on other sites

I think what Slippery Pencil was asking about was Sara's comment that her firm would prepare just the Schedule C for clients and charge for that work.  You don't have to prepare the entire return to be required to sign as preparer, so I too am curious about preparing such a substantial portion of a return and having not control over signing the return.   That would make me very uncomfortable, and I would not do it. 

  • Like 4
Link to comment
Share on other sites

Yeah, at HRB we got asked to prepare Schedules D a lot (pricey Fairfield County, CT, with a lot of DIY investors, or, maybe, expensive CPAs with taxpayers trying to cut costs). And, Schedules C for the DIY crowd. We were told NOT to prepare part of a return for Gail's reason. HRB did do some "in-house" things like have a multi-state specialist for the whole district that prepared all the NR returns, signed them, and returned them to the preparer. But I worked in a Premium office where we did our own state returns. Other offices referred biz/trust/estate clients to us, but they became OUR clients for their entity returns.

Today's Trivia: way back then, we prepared entity returns on ATX. That's how I found the "old" board and re-found this ATX Community when it went out on its own. Prior to the closure of the "old" board by CCH, I was going to buy ATX as I went out on my own; because I already was familiar with using it for entities. With the closure of the "old" board, I vowed to never buy CCH products ever. However, as I demoed every software out there, ProSystem fx worked the way I worked and had the capability I needed for my clientele.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...