Federal Tax Provisions Not Applicable for 2012 Tax Returns
May 3, 2012
Circular 230 and Registered Federal Tax Return Preparers
April 25, 2012
Registered Tax Return Preparer Testing
April 18, 2012
April 17 Filing Deadline Reminders
April 11, 2012
Continuing Education Reminder for Registered Return Preparers
March 21, 2012
State Individual Income Tax Return
Electronic Filing Mandates
The states can be found below in alphabetical order.
A C I K L M N O P R S U V WE-File Practitioner Mandate Requirements:
The threshold is over 50 Alabama individual income tax returns filed in the previous filing season.
Taxpayer Opt-Out Provision:
The taxpayer opts out by filing their return on paper.
Penalty:
No penalty at this time.
For more information see the Alabama Department of Revenue website.
E-File Practitioner Mandate Requirements:
A preparer is required to file their California individual income tax returns electronically if:
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The preparer filed more than 100 individual returns during any calendar year; or
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The preparer prepares one or more individual income tax returns using tax preparation software in the current calendar year
Taxpayer Opt-Out Provision:
The taxpayer may opt out by completing Form 8454.
Penalty:
A penalty of $50 may be imposed for each return that should have been electronically filed.
For more information see the California Franchise Tax Board Mandatory e-File website.
Connecticut
E-File Practitioner Mandate Requirements:
The threshold is 50 or more Connecticut individual income tax returns filed in the previous filing season.
Taxpayer Opt-Out Provision:
Connecticut does not have an opt-out provision.
Instead, the statute allows for a taxpayer to send a written request to the Department of Revenue for a 1 year waiver for filing their return electronically. They must provide good cause as to why they do not want their return filed electronically.
Penalty:
There is no penalty at the present time.
For more information see the Connecticut Department of Revenue Service website.
The mandate began with the 2011 filing season.
E-File Practitioner Mandate Requirements:
The threshold is 100 or more Illinois individual income tax returns filed in the prior filing season.
Opt-Out Provision:
The taxpayer may opt out by completing and signing Form IL-8948.
Penalty:
There is no penalty at this time.
For more information see the Illinois Department of Revenue website.
Indiana
E-File Practitioner Mandate Requirements:
The threshold is now 100 or more Indiana individual income tax returns. Beginning with the 2012 filing season, Part-Year/Nonresidents returns will be included in the computation of the threshold.
Opt-Out Provision:
The taxpayer may opt out by completing and signing Form IN-OPT.
Penalty:
A penalty of $50 per return not filed electronically will be enforced up to a maximum of $25,000 per year. Indiana began imposing this penalty during the 2011 filing season.
For more information see the Indiana Department of Revenue website.
E-File Practitioner Mandate Requirements:
Practitioners who prepared 50 or more Kansas individual income tax returns during any calendar year must file at least 90% of their Kansas individual returns electronically.
Taxpayer Opt-Out Provision:
There is not a taxpayer opt-out provision.
Since the preparer must file 90% of their returns electronically, any taxpayer who does not want to file electronically will be included in the 10% of returns that the preparer does not have to file electronically.
Penalty:
There is no penalty at the present time.
For more information see the Kansas Department of Revenue website.
Kentucky
E-File Practitioner Mandate Requirements:
Kentucky follows the Federal individual e-File practitioner mandate. The threshold is 11 or more Kentucky individual income tax returns filed.
Taxpayer Opt-Out Provision:
The taxpayer may opt out by completing and submitting their request on a form provided by the Kentucky Department of Revenue.
Penalty:
The penalty is $10 per return.
For more information see the Kentucky Tax Alert for May 2010.
E-File Practitioner Mandate Requirements:
Practitioners who prepared 100 or more Louisiana individual income tax returns during any calendar year are required to file at least 90% of their Louisiana returns electronically.
Taxpayer Opt-Out Provision:
There is not a taxpayer opt-out provision.
Penalty:
The penalty is $100 or 5% of tax, whichever is greater for all returns not filed electronically.
For more information see the Louisiana Department of Revenue website.
E-File Practitioner Mandate Requirements:
The threshold is 11 or more Maine individual income tax returns filed in the previous filing season.
Taxpayer Opt-Out Provision:
If the taxpayer does not want to file electronically the tax preparer needs to note so in their file.
Penalty:
A penalty of $50 will be assessed per return not filed electronically.
For more information see the Maine Revenue Service website.
Maryland
E-File Practitioner Mandate Requirements:
The threshold is over 100 Maryland individual income tax returns filed in the previous filing season.
Taxpayer Opt-Out Provision:
To opt out, the taxpayer must check the opt-out box on the resident (Form 502) or nonresident form (Form 505).
Penalty:
A penalty may be imposed of $50 per return with a maximum penalty of $500 for one year.
For more information see the Comptroller of Maryland website.
Massachusetts
E-File Practitioner Mandate Requirements:
The threshold is 100 or more Massachusetts individual income tax returns filed in the previous filing season.
Taxpayer Opt-Out Provision:
To opt out, the taxpayer must complete and sign Form EFO.
Penalty:
There is no penalty at the present time.
For more information see the Massachusetts Department of Revenue website.
Michigan
E-File Practitioner Mandate Requirement:
If a preparer is required to file their Federal individual income tax returns electronically they are required to file their Michigan individual income tax returns electronically.
Taxpayer Opt-Out Provision:
Michigan does not have a taxpayer opt-out provision.
Penalty:
There is not a monetary penalty.
Minnesota
E-File Practitioner Mandate Requirements:
Preparers who reasonably expect to prepare more than 10 Minnesota individual income tax returns for the upcoming filing season.
Taxpayer Opt-Out Provision:
The taxpayer may not opt out.
Penalty:
The state imposes a $5 per return penalty on the preparer (that falls under the mandate) for any return they do not file electronically. This is true even if the taxpayer indicates they do not want their return filed electronically.
Minnesota Fact Sheet #17 explains the Preparer’s Paper Filing Fee and how the practitioner may submit payments for any returns that they file on paper. They may do this by sending a check with Form PV50, paying over the internet, phone, or electronically. It is a requirement for practitioners to pay the fee.
For more information see the Minnesota Department of Revenue website.
E-File Practitioner Mandate Requirements:
Any person or business paid to prepare more than 100 Nebraska individual income tax returns must file those returns electronically.
Taxpayer Opt-Out Provision:
The taxpayer opts out by completing and signing the Nebraska e-File Opt-Out Record.
Penalty:
The penalty is $100 per return not filed electronically.
For more information see the Nebraska Department of Revenue website.
New Jersey
E-File Practitioner Mandate Requirements:
The threshold is 25 or more New Jersey individual income tax returns filed in the previous filing season.
Taxpayer Opt-Out Provision:
The taxpayer opts out by filling out and signing Form NJ-1040-O.
Penalty:
A penalty of $50 will apply per return not electronically filed.
For more information see the New Jersey Division of Taxation website.
New Mexico
E-File Practitioner Mandate Requirements:
The threshold is over 25 New Mexico individual income tax returns filed for the previous filing season.
Taxpayer Opt-Out Provision:
The taxpayer may opt out by completing Form RPD-41338 (Taxpayer Waiver for Preparers Electronic Filing Requirement).
Penalty:
A penalty of $5 will apply per return not filed electronically.
For more information see the New Mexico Taxation and Revenue Department website.
New York
Self-Prepared individual returns (New for 2012 Filing Season):
New York passed legislation in April 2011 which expands their electronic filing mandate to require individuals who prepare their own New York individual income tax return as follows:
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New York individual income tax returns that were prepared by the taxpayer using computer software must file it electronically.
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The penalty for filing a required return on paper will be $25.
For more information on the Self-Prepared Return e-File mandate see the New York Department of Taxation and Finance website.
E-File Practitioner Mandate Requirements:
The threshold is more than 25 Ohio individual income tax returns filed in the previous filing season. Preparers that are over the threshold are required to e-File all Ohio individual income tax returns in excess of 75.
Taxpayer Opt-Out Provision:
There is no taxpayer opt-out provision.
Penalty:
A penalty of $50 will apply per return in excess of 75 returns that are not filed electronically.
For more information see the Ohio Department of Taxation website.
Oklahoma
E-File Practitioner Mandate Requirements:
All Oklahoma individual income tax returns prepared by a paid preparer must be filed electronically.
Taxpayer Opt-Out Provision:
There is no taxpayer opt-out provision.
Penalty:
There is no penalty at the present time.
For more information see the Oklahoma Tax Commission website.
E-File Practitioner Mandate Requirements:
The threshold is 50 or more Pennsylvania individual income tax returns filed in the previous filing season.
Taxpayer Opt-Out Provision:
The taxpayer opts out by checking the opt-out box on Form PA-40.
Penalty:
There is no penalty provision at this time.
For more information see the Pennsylvania Department of Revenue website.
E-File Practitioner Mandate Requirements:
The threshold is 100 or more Rhode Island individual income tax returns filed.
Taxpayer Opt-Out Provision:
There is no taxpayer opt-out provision.
Penalty:
There is not a monetary penalty provision. However, the state can bar the preparer from preparing and filing Rhode Island personal income tax returns for not filing their returns electronically when they are required to.
For more information see the Rhode Island Division of Taxation website.
E-File Practitioner Mandate Requirements:
The threshold is 100 or more South Carolina individual income tax returns filed in the previous filing season.
Taxpayer Opt-Out Provision:
The taxpayer may opt out by checking a box on their return that indicates they do not wish to file their return electronically.
Penalty:
A penalty of $50 will apply per return not filed electronically.
For more information see the South Carolina Department of Revenue website.
E-File Practitioner Mandate Requirements:
The threshold is over 100 Utah individual income tax returns filed in the previous filing season.
Taxpayer Opt-Out Provision:
The taxpayer opts out by completing Form TC-831.
Penalty:
There is no penalty at this time.
For more information see the Utah State Tax Commission website.
E-File Practitioner Mandate Requirements:
The threshold is over 50 Virginia individual income tax returns filed for the previous filing season.
Taxpayer Opt-Out Provision:
Election to opt out is made by filling out VA Form 8454T. The taxpayer and preparer must sign the form and the preparer retains the form.
Penalty:
No penalty at the present time.
For more information see the Virginia Department of Taxation website.
E-File Practitioner Mandate Requirements:
Practitioners who prepared more than 25 West Virginia individual income tax returns, and will be using tax preparation software, must file all of their West Virginia individual returns electronically.
Taxpayer Opt-Out Provision:
The taxpayer must complete and sign the West Virginia Mandate Opt-Out Form.
Penalty:
A penalty of $25 will apply per return not filed electronically.
For more information see the West Virginia State Tax Department website.
Wisconsin
E-File Practitioner Mandate Requirements:
The threshold is over 50 Wisconsin individual income tax returns filed in the previous filing season.
Taxpayer Opt-Out Provision:
To opt out, the taxpayer should write “No E-File” by his or her signature on their Wisconsin income tax return.
Penalty:
There is no penalty at this time.
For more information see the Wisconsin Department of Revenue website.
TY 2011 Federal Tax Law Updates
Click on the button below to view a video presentation of the Federal Tax Law Updates that affect TY 2011.
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