In 2004, the IRS launched their Business Systems Modernization (BSM) Program in an effort to update its technology and related business processes. A major component of that program is the modernized e-file system (MeF), an Internet-based filing platform designed to enhance and expedite service to taxpayers.
If you work with or are considering working with a tax preparer, you will want to review the following points to be aware of these changes imposed by the IRS that affect you and your tax preparer:
As of January 1, 2012, all tax return preparers that prepare and file eleven or more Forms 1040 and 1041 tax returns during a calendar year must use IRS e-file, with few exceptions. With the advent of new technology and regulations instituted by the IRS, it is more important than ever to be aware of these new procedures to work with a tax preparer who is in compliance with complicated IRS regulations.
Individual taxpayers may still elect to paper file but may be required to complete and attach Form 8948, Preparer Explanation for Not Filing Electronically, when filing their tax return. When you are selecting a tax preparer or working with your current tax preparer, be sure to ask him/her if they file their returns electronically with the IRS. If they do not, then you will want to explore why and consider the importance of the IRS Modernized e-file system and how it can expedite the tax return process more effectively than paper filing.
It is important that taxpayers make sure the individual that prepares their taxes is current with any continuing education requirements regarding tax law and regulation changes that could affect their tax return.
The IRS changes their rules and regulations to better serve their constituents — U.S. taxpayers. Tax preparation firms, such as ATBS, are committed to proactively adjusting and adapting to new IRS requirements to ensure clients are in compliance with IRS requirements.
As a taxpayer, you want to avoid mistakes and maximize the deductions you are entitled to and a tax preparation firm like ATBS can provide you the comfort of knowing you are receiving a high-quality return that complies with tax laws and regulations.