Level 3

Solved

Efiling for others

Forum|Forum|5 years ago
February 8, 2021
5 replies
36 views

I am a relatively new EFIN user.

A family owned company has approached me with the idea that they will buy the Lacerte program to self prepare the family S corp and several individual returns.

A family member will prepare these returns as a non paid preparer.

They want to provide me with a backup of the prep files for me to complete the efile though my Lacerte and with my EFIN.

In turn I will pass on to them the filing fees, but no other charges on my part.

Is this possible and if so, what is the best way to proceed?

Thanks for any help.

Jerry

Lacerte Tax

This topic has been closed for replies.

Best answer by JerryB

There is great value in learning what questions to ask.

Per your reply it appears the question is about my EFIN responsibilities and the risk of having the EFIN revoked.

Thank you for helping to center the focus of my question.

I will do some research to determine the extent of due diligence imposed on an e-filer of a return not prepared by the efiler.

I suspect there is considerable due diligence imposed on the efiler to confirm the identity of the taxpayer.

And perhaps there is simply a prohibition against it.

thanks again.

Prepared with the proper questions here is what I found on the IRS website under FAQs for EFIN:

Can my firm e-file a return for a taxpayer which my firm did not prepare?

Yes, as long as my firm gets the return directly from the taxpayer.

I am much obliged and appreciate everyone's help.

In the future I will try a little more due diligence on my own before I bother the busy but helpful community.

Just-Lisa-Now-

Intuit Community Champion

There has been some discussion as to how much liability you may have for Efiling returns that you didnt prepare/review under your firm name/EFIN.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

J

JerryBAuthor

Level 3

I suspected this idea was not going to be straight forward.

There are always wrinkles.

Any suggestions where I might start looking for more info?

thanks,

Just-Lisa-Now-

Intuit Community Champion

Im sure more people will comment on this soon.

Ive never had this type of situation presented to me, so I havent really dug around looking into it personally.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

George4Tacks

Level 15

Does the family member have a PTIN?

Is this family member on payroll, or ownership of this S-Corp? I think they might be considered to be a paid preparer.

You will process for no cost? Why?

Answers are easy. Questions are hard!

J

JerryBAuthor

Level 3

the member of the S corp family does not have a PTIN.

The family member is on the payroll as an employee of the S corp but I believe, if I am reading it correctly, he is not considered a paid preparer per section (f): Persons who are not tax return preparers:

26 CFR § 301.7701-15

(ix) An individual preparing a return or claim for refund of a taxpayer, or an officer, a general partner, member, shareholder, or employee of a taxpayer, by whom the individual is regularly and continuously employed or compensated or in which the individual is a general partner.

T

TaxGuyBill

Level 15

This isn't what you are asking about, so feel free to ignore this, but this is just my personal opinion about that situation:

Do-it-yourselfers should NOT be doing corporate returns. I would not want to do anything to encourage them to do so (such helping them with the e-filing).

J

JerryBAuthor

Level 3

so noted.

IRonMaN

Level 15

I don't know, maybe I'm just a dinosaur who lived through the Ice Age but I don't want my name associated with any tax return I didn't prepare. If my name is associated with the return, I wouldn't just grab the return and transmit it without going through the return to make sure it was correct.

Slava Ukraini!

J

JerryBAuthor

Level 3

As I noted, I am somewhat new to this so I have some basic questions.

The IRS wants/requires everyone to efile.

How would a mom and pop efile a return they prepared on their kitchen table?

Are there not services out there designed to facilitate efiling?

In pursuit of its goal, I would think the IRS would encourage a system to efile other people's returns without burdening the e-filer with penalties meant for a preparer or requiring the e-filer to "review" the return for other than e-file compatibility diagnostics.

Leaning in this direction might suggest the IRS wants/requires everyone to engage a paid preparer.

That just seems a little draconian.

IRonMaN

Level 15

"Free-file" is available to a lot of folks. They can buy Turddotaxx or some other DIY software. They can pay a professional to prepare the return for them. So there are options.

Slava Ukraini!

qbteachmt

Level 15

Okay; I counsel business people, so I will take this one:

"In turn I will pass on to them the filing fees, but no other charges on my part."

You just completely devalued yourself and your professionalism to them.

You are being asked to provide something of value to them, that also costs you.

What about your programs, your computer equipment and your connection costs? You are putting your own E&O at risk, as well. All of this has some value to be recaptured. It's one thing not to charge your usual rate, or have the intent not to profit, or be willing to work for free. It's another to be paying for all of the infrastructure you are providing to them. Otherwise, why don't they do all of it in house and without you? The answer is, they find some value in your involvement. That is either Nefarious or Innocent, but not Free to you. Why should it be free to them?

Here's one example: I own and update more than one computer, so that if something dies in the middle of the time I need it, I move over to the other one. That costs me time and money to have a "spare" on hand that is ready to go, and as a professional, I am willing to invest in that provision.

Don't yell at us; we're volunteers

J

JerryBAuthor

Level 3

thank you for your counsel.

I want you to know your advice is valued, even though provided gratis.

kind regards.

Sign up

Login with SSO

Let's get you signed in

Login with SSO