Sent: Wednesday, September 24, 2008 12:25 PM
To: taxchat@yahoogroups.com
Subject: RE: e-filing, was Re: [taxchat] Mailing tax returns
__._,_.___> Word on the street is that IRS will be mandating efiling before too long.
That's what I'm hearing as well, John. I totally agree with your assessment
of the situation. I figure that within three or four years, we'll be
wearing uniforms, like postal workers.
TX has no individual income tax, so the mandatory efiling requirement is
moot here. When it becomes mandatory to efile 1040s, that's when I'll do
it. But I'm getting pretty close to retirement age....
Also, I concede the many good arguments for efiling. I'm not encouraging
anyone to follow my example, just explaining that I have my reasons.
Chuck
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com ] On Behalf Of
John Stevens, Equi-Tax
Sent: Wednesday, September 24, 2008 10:57 AM
To: taxchat@yahoogroups.com
Subject: RE: e-filing, was Re: [taxchat] Mailing tax returns
The IRS is out of control Chuck. The MLTN standard is absurd, pitting
preparers against their clients. Rev. Proc. 2008-14, however provides some
relief from the need to file the Form 8275. The Rev. Proc. Says that there
are 5 ways the position may be disclosed to the IRS. The 8275 is only one
of the 5 ways. The third way in the list in the Rev. Proc. says that if a
position meets the substantial authority standard, disclosure of the
position is adequate if the tax return preparer advises the taxpayer of all
of the penalty standards applicable to the taxpayer under section 6662. It
still means you must have a reasonable basis for the position supported by
authority. The practical effect is to put you on the same level with TP.
Maybe it means we need to do more research if we want to be aggressive on a
position to see what the cases say.
Here in MN we don’t have much choice anymore about efiling. If we file more
than 100 returns per year, we have to efile everything, unless TP says no,
but then they levy a penalty on the preparer, not the TP. We tell our
clients that we will have to pass the penalty onto them on their invoice.
They then elect to efile. Word on the street is that IRS will be mandating
efiling before too long.
John Stevens, EA
Stevens Tax & Accounting, Inc., dba Equi-Tax
1870 - 50th St. E., Suite 8
Inver Grove Heights, MN 55077
651-773-5000
FAX 651-457-4529
equitax@unique-software. com
www.equitax.net
_____________________ _________ _________ _
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com ] On Behalf Of
Chuck Warman
Sent: 09/24/2008 10:22 AM
To: taxchat@yahoogroups.com
Subject: RE: e-filing, was Re: [taxchat] Mailing tax returns
The IRS’s goal is to turn preparers into their collection arm That’s the
whole purpose of the new “more likely than not” standards and Sec 6694
preparer penalties. The standards for tax preparers are higher than for the
taxpayers themselves. I never file a return with anything in it that I know
is wrong or false. But I do take some aggressive positions which possibly
wouldn’t meet MLTN. I’m not anxious to find out, because if I lose, I get a
minimum $1000 preparer penalty.
Given this new adversarial environment, I am not going to make it easier for
the IRS to come after me or my clients. Paper-filed returns make it harder;
it’s just that simple. I will continue to represent my clients, not the IRS.
Chuck
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com ] On Behalf Of
Arnold M. Socol
Sent: Wednesday, September 24, 2008 8:28 AM
To: taxchat@yahoogroups.com
Subject: Re: e-filing, was Re: [taxchat] Mailing tax returns
Chuck,
So what if IRS does what they do. I am sure you can stand behind every
return you do. If the IRS does what they do then that's not your fault, but
efiling gives your client a better and accurate product that does not result
in CP2000 as I have had in the past because the paper returns were data
entries by some clerks looking to see when 4 pm is coming so they can go
home. You also get receipt and acceptance acknowledgement in 24 hours and
much less.
Arnie
From: Chuck Warman
To: taxchat@yahoogroups.com
Sent: 09/23/2008 6:42 PM
Subject: RE: e-filing, was Re: [taxchat] Mailing tax returns
I've argued this one until I'm exhausted, not gonna do it anymore.
I have a college classmate who has stayed in touch over the years. When our
kids were young, we used to vacation together. He is a high-ranking career
IRS man. He has confirmed to me any number of times that whenever the IRS
launches a new fishing expedition, which happens frequently, they use only
efiled returns. The details are so much more accessible and sortable, you
see. I'm taking his word for it; he paper files his own return.
Chuck
-----Original Message-----
From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com ] On Behalf Of
Ann Von Hagel
Sent: Tuesday, September 23, 2008 5:23 PM
To: taxchat@yahoogroups.com
Subject: e-filing, was Re: [taxchat] Mailing tax returns
That's what I tell my clients. Essentially, all returns are
electronically filed since the IRS does not process returns by hand. So
the question becomes, do you want to mail it in and have some temp who
knows nothing about taxes copying numbers into a data terminal, or do
you want me to send it directly from my computer to theirs knowing that
what they'll get is exactly what you see on my screen. I've explained
it that way to some folks who kind of had an epiphany. Sometimes I ask
them first how they think returns are processed. The more complex the
return, the better this argument is.
Ann Von Hagel, EA
Arlington, VA
Debbie Breedlove wrote:
>
> I don't see a difference. When you mail a return, an IRS employee
> enters everything from the return into their computer. If they are
> data mining, they have the data either way. When you efile the
> return, it just eliminates that step because the info from the return
> goes right into their computer. I prefer efiling because it
> eliminates the possibility of some temp employee making an error when
> doing the data entry.
>
>
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