P-1 Preparing return (Efile Process)

Question 1

Amended tax returns from 2019 and forward can be?

Answer 1

Amended tax returns from 2019 forward can be e-filed

Question 2

The ERO must maintain forms W-2, W-2g, 1099-R for how long?

Answer 2

The ERO must maintain forms W-2, W-2g, 1099-R until the end of the calendar year.

Question 3

The ERO must maintain a copy of signed IRS e-file consent to disclosure forms for how long?

Answer 3

The ERO must maintain a copy of signed IRS e-file consent to disclosure forms until the end of the year.

Question 4

The ERO must maintain a complete copy of the electronic portion of the return that can be readily and accurately converted into an electronic transmission that the IRS can process for how long?

Answer 4

The ERO must maintain a complete copy of the electronic portion of the return that can be readily and accurately converted into an electronic transmission that the IRS can process

Question 5

The ERO must maintain the acknowledgement file for IRS accepted returns for how long?

Answer 5

The ERO must maintain the acknowledgement file for IRS accepted returns until end of the year.

Question 6

ERO may resubmit a rejected return without additional signatures if the return does not differ in what two ways?

Answer 6

The ERO may resubmit, without additional signatures, a return where the amounts do not differ by more than $50 to Total Income or AGI, or $14 to Total Tax, Federal Income Tax Withheld, or Amount You Owe.

Question 7

Can fiscal year returns be electronically filed?

Answer 7

No, fiscal year returns cannot be electronically filed.

Question 8

A preparer that files or anticipates filing more than how many return s must e-file?

Answer 8

A preparer that file or anticipates filing more than 11 returns must electronically file their returns.

Question 9

Does form 8453, U.S Individual Income Tax Transmittal for an IRS e-file require anyone’s signature?

Answer 9

No, Form 8453 U.S Individual Income Tax Transmittal for an IRS e-file does not require anyone’s signature.

Question 10

IRS e-file procedures do not require that the ERO submit Form 8879, IRS e-file Signature Authorization. At what point in the e-file procedure should the ERO transmit the tax return

Answer 10

If an IRS e-file procedure does not require that the ERO submit form 8879, IRS e-file Signature, then, the ERO should transmit the tax return after the ERO and taxpayer complete and sign Form 8879.

Question 11

How long must form 8879 IRS e-file for Signature Authorization forms be available?

Answer 11

Forms 8879 IRS e-file should be available for three years from the due date of the return or the IRS receive date, whichever is later.

Question 12

What is a popular target for fraud and abuse than electronic return provider should look out for?

Answer 12

Fraud in relation to the Earned income tax credit.

Question 13

What form must be filed if a client elects not to include his transactions on the electronic short-term capital gain (loss) or long-term capital gain (loss) records?

Answer 13

If a client elects not to include his transactions on the electronic short-term capital capital gain (loss) or long-term capital gain (loss) records then form 8453, US individual income tax transmittal for an IRS e-file return must be filed by mail by the ERO together with all supporting paper documents that are required to complete the filing of particular e-filed returns.

Question 14

For how long must an ERO retain Form 8879, IRS e-file Signature Authorization?

Answer 14

An ERO must retain Form 8879, IRS e-file Signature Authorization for 3 years from the return due date or the date the IRS received the return, whichever is later.

Question 15

What form must be filled out if a taxpayer has their final paystub but not their w-2 and wants to electronically file their income tax return?

Answer 15

If a taxpayer wants to electronically file their tax return without their w-2, using their last paystub they must sign form 4852 (Substitute for Form W-2)

Question 16

How long should a preparer keep his copy of form 8879?

Answer 16

A preparer should keep his copy of form 8879 for 3 years from the return due date or the date the IRS received the return whichever is later.

Question 17

How is form 8453 filed?

Answer 17

Form 8453, US individual income tax transmittal for an IRS e-file return must be filed by mail by the ERO together with all supporting paper documents that are required to complete the filing of particular e-filed returns.

Question 18

radio or television broadcasting regarding advertisement of electronic filing must be kept for how long?

Answer 18

radio or television broadcasting regarding advertisement of electronic filing must be kept until the end of the calendar year following the last transmission or use.

Question 19

What does the phrase “records of the client” mean?

Answer 19

“Records of the client” is electronic financial material created by the client before the engagement.

Question 20

Can tax returns using foreign or overseas addresses be filed electronically?

Answer 20

Yes, Taxpayers may file both state and federal returns using the IRS e-file system. E-file is now available for returns using a foreign or overseas address. Many software providers are now capable of filing returns electronically when the taxpayer has any foreign overseas address, where in the past it was only available for APO or FPO.

Question 21

If a practitioner encounters a questionable W-2, what should he do?

Answer 21

The practitioner should contact the IRS.

Question 22

Can an ERO practitioner sign an 8879 using a rubber stamp?

Answer 22

Yes, a practitioner can sign a form 8879 using a rubber stamp.

Question 23

In order to resubmit a rejected return without additional signatures the amounts for “Total Tax,” “Amount You Owe,” or “Federal Income Tax Withheld” cannot change by how much?

Answer 23

In order to resubmit a rejected return without additional signatures the amounts for “Total Tax,” “Amount You Owe,” or “Federal Income Tax Withheld” cannot change by more than $14.

Question 24

In order to resubmit a rejected return without additional signatures the amounts for “Total Income” and “AGI” cannot change by how much?

Answer 24

In order to resubmit a rejected return without additional signatures the amounts for “Total Income” and “AGI” cannot change by more than $50.

Question 25

When a taxpayer e-files his 1040, and the ERO enters the taxpayer PIN, what documents must the ERO sign?

Answer 25

The ERO must sign the form 8879 only.

Question 26

What form must a taxpayer appropriately sign if they use a practitioner PIN?

Answer 26

The taxpayer must appropriately sign form 8879 if they use a practitioner pin.

Question 27

Can a taxpayer amend an e-filed return to change his direct deposit selection or election?

Answer 27

No, it is not permitted, once the IRS e-file return is accepted, information pertaining to the payment, such as the account information, payment date or amount, cannot be changed.

Question 28

As an ERO, when must you mail form 8453 to the IRS?

Answer 28

If you are an ERO, you must mail Form 8453 to the IRS within 3 business days after receiving acknowledgement that the IRS has accepted the electronically filed tax return.

Question 29

If an ERO does not use the Practitioner pin method does the ERO have to complete form 8879?

Answer 29

No, If the ERO is not using the Practitioner PIN method and the taxpayer enters his or her own PIN, then a Form 8879 does not need to be completed. If a taxpayer uses their own PIN is it not neccessary.

Question 30

E-file is not available for amended tax returns prior to what year?

Answer 30

E-file is not available for amended tax returns for tax years prior to 2019.