Recent Tax Updates

State Individual Income Tax Return Electronic Filing Mandates


State e-filing requirements can be found below in alphabetical order.

A   C   I   K   L   M   N   O   P   R   S   U   V   W




Alabama E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is over 50 Alabama individual income tax returns filed in the previous tax filing season.

Taxpayer Opt-Out Provision:
The taxpayer opts out by filing a paper return.

Penalty:
No penalty at this time.

For more information see the Alabama Department of Revenue website.


California E-File Requirements

E-File Practitioner Mandate Requirements:
A professional tax preparer is required to file their California individual income tax returns electronically if:

  • The tax preparer filed more than 100 individual tax returns during any calendar year; or
  • The tax preparer prepares one or more individual income tax returns using professional tax 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 tax return that should have been electronically filed.

For more information see the California Franchise Tax Board Mandatory e-File website.


Connecticut E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is 50 or more Connecticut individual income tax returns filed in the previous tax 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 e-filing their return. They must provide good cause as to why they do not want their return e-filed.

Penalty:
There is no penalty at the present time.

For more information see the Connecticut Department of Revenue Service website.


Illinois E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is 10 or more Illinois individual income tax returns filed in the prior tax 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 Requirements

E-File Practitioner Mandate Requirements:
The threshold is 100 or more Indiana individual income tax returns. Part-Year/Nonresident tax returns are included when determining the threshold amount.

Opt-Out Provision:
The taxpayer may opt out by completing and signing Form IN-OPT.

Penalty:
A penalty of $50 per return not e-filed will be enforced up to a maximum of $25,000 per year.

For more information see the Indiana Department of Revenue website.


Kansas E-File Requirements

E-File Practitioner Mandate Requirements:
Professional tax preparers who prepared 50 or more Kansas individual income tax returns during any calendar year must e-file at least 90% of their Kansas individual returns.

Taxpayer Opt-Out Provision:
There is no taxpayer opt-out provision.

Since the tax preparer must e-file 90% of their returns, any taxpayer who does not want to file electronically will be included in the 10% of returns that the tax preparer does not have to e-file.

Penalty:
There is no penalty at the present time.

For more information see the Kansas Department of Revenue website.


Kentucky E-File Requirements

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 tax return.

For more information see the Kentucky Tax Alert for May 2010.


Louisiana E-File Requirements

E-File Practitioner Mandate Requirements:
Professional tax preparers who prepared 100 or more Louisiana individual income tax returns during any calendar year are required to e-file at least 90% of their Louisiana tax returns.

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 e-filed.

For more information see the Louisiana Department of Revenue website.


Maine E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is 11 or more Maine individual income tax returns filed in the previous tax filing season.

Taxpayer Opt-Out Provision:
If the taxpayer does not want to e-file the tax preparer needs to note so in their file.

Penalty:
A penalty of $50 will be assessed per return not e-filed.


Maryland E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is over 100 Maryland individual income tax returns filed in the previous tax 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 tax return with a maximum penalty of $500 for one year.

For more information see the Comptroller of Maryland website.


Massachusetts E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is 100 or more Massachusetts individual income tax returns filed in the previous tax 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 Requirements

E-File Practitioner Mandate Requirement:
If a tax preparer is required to e-file their Federal individual income tax returns they are required to e-file their Michigan individual income tax returns.

Taxpayer Opt-Out Provision:
Michigan does not have a taxpayer opt-out provision.

Penalty:
There is no a monetary penalty.


Minnesota E-File Requirements

E-File Practitioner Mandate Requirements:
Professional tax preparers who reasonably expect to prepare more than 10 Minnesota individual income tax returns for the upcoming tax season.

Taxpayer Opt-Out Provision:
The taxpayer may not opt out.

Penalty:
The state imposes a $5 per tax return penalty on the tax preparer (that falls under the mandate) for any return they do not e-file. This is true even if the taxpayer indicates they do not want their return e-filed.

Minnesota Fact Sheet #17 explains the Preparer’s Paper Filing Fee and how the professional tax preparer may submit payments for any returns that they paper file. They may do this by sending a check with Form PV50, paying over the internet, phone, or electronically. It is a requirement for preparers to pay the fee.

For more information see the Minnesota Department of Revenue website.


Nebraska E-File Requirements

E-File Practitioner Mandate Requirements:
Any person or business paid to prepare 25 or more Nebraska individual income tax returns must e-file those returns.

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 e-filed.

For more information see the Nebraska Department of Revenue website.


New Jersey E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is 11 or more New Jersey individual income tax returns filed in the previous tax 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 tax return not e-filed.

For more information see the New Jersey Division of Taxation website.


New Mexico E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is over 25 New Mexico individual income tax returns filed for the previous tax 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 e-filed.

For more information see the New Mexico Taxation and Revenue Department website.


New York E-File Requirements

Electronic Filing Requirement for Individual Taxpayers:
An individual is required to e-file their New York individual income tax return if they meet all three of the following conditions:

  • Use tax software to prepare your own personal income tax return;

  • The tax software supports the e-filing of your New York tax return; and

  • Have broadband Internet access

Penalty:
The penalty for individuals not e-filing was eliminated.

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 Requirement:
The threshold is more than 10 New York individual income tax returns filed in the previous tax filing season.

Penalty:
A Penalty of $50 will apply per return not e-filed.

For more information on the New York E-File Practitioner Mandate see the New York Department of Taxation Changes to the Tax Preparer E-File Mandate page.


Ohio E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is more than 10 Ohio individual income tax returns filed during the previous tax filing season.

Taxpayer Opt-Out Provision:
There is no taxpayer opt-out provision.

Penalty:
A penalty of $50 will be imposed for each tax return in excess of 10 returns that are not e-filed.

For more information see the Ohio Department of Taxation website.


Oklahoma E-File Requirements

E-File Practitioner Mandate Requirements:
All Oklahoma individual income tax returns prepared by a paid professional tax preparer must be e-filed.

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.


Oregon E-File Requirements

E-File Practitioner Mandate Requirements:
Oregon tax preparers who meet the federal requirement to e-file federal individual returns must also e-file their Oregon individual returns.

Taxpayer Opt-Out Procedure:
If taxpayer wishes to paper file their Oregon individual return the professional tax preparer must have the taxpayer sign a statement for each of their clients who choose not to e-file. The tax preparer should keep this statement in the taxpayers file.

For more information see the Oregon Department of Revenue website.


Pennsylvania E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is 11 or more Pennsylvania individual income tax returns filed annually.

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.


Rhode Island E-File Requirements

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 no monetary penalty provision. However, the state can bar the professional tax preparer from preparing and filing Rhode Island personal income tax returns for not e-filing when they are required to.

For more information see the Rhode Island Division of Taxation website.


South Carolina E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is 100 or more South Carolina individual income tax returns filed in the previous tax filing season.

Taxpayer Opt-Out Provision:
The taxpayer may opt out by checking a box on their tax return that indicates they do not wish to e-file their return.

Penalty:
A penalty of $50 will apply per return not e-filed.

For more information see the South Carolina Department of Revenue website.


Utah E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is over 100 Utah individual income tax returns filed in the previous tax 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.


Virginia E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is over 50 Virginia individual income tax returns filed for the previous tax filing season.

Taxpayer Opt-Out Provision:
Election to opt out is made by filling out VA Form 8454T. The taxpayer and professional tax preparer must sign the form and the tax preparer retains the form.

Penalty:
No penalty at the present time.

For more information see the Virginia Department of Taxation website.


West Virginia E-File Requirements

E-File Practitioner Mandate Requirements:
Professional tax preparers who prepared more than 25 West Virginia individual income tax returns, and will be using professional tax software, must e-file all of their West Virginia individual tax returns.

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 e-filed.

For more information see the West Virginia State Tax Department website.


Wisconsin E-File Requirements

E-File Practitioner Mandate Requirements:
The threshold is over 50 Wisconsin individual income tax returns filed in the previous tax 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.