User's Manual - Drake Software

Drake Software User’s Manual
Appendix E: State E-filing Mandates
State e-filing mandates for tax year 2012, as collected from state tax-authority publications,
are provided below.
Alabama
If an income tax return preparer prepares 50 or more acceptable, original individual
income tax returns using tax preparation software in a calendar year, then for each
subsequent calendar year thereafter, all acceptable individual income tax returns prepared
by that income tax preparer must be filed using electronic technology. Regulation
810-3-27-.09
A taxpayer can elect to opt out of e-filing; you need only to file a signed paper original
individual income tax return. That client’s paper return will be included in your total
mandate count.
If an income tax return preparer prepares 25 or more acceptable, original corporate or
partnership income tax returns using tax preparation software in a calendar year, then
for that calendar year and for each subsequent calendar year thereafter, all acceptable
corporate and partnership income tax returns prepared by that income tax preparer
must be filed using electronic technology.
There is no opt-out provision for corporations or partnerships.
California
Connecticut
Florida
Illinois
California law requires tax preparers who prepare more than 100 individual state
income tax returns annually and prepare one or more using tax preparation software—
including preparers residing or with an office out the state—to e-file all individual
income tax returns. A $50-per-return penalty may be assessed for each return filed on
paper that should have been e-filed unless the failure to e-file is due to reasonable
cause and not willful neglect. Reasonable cause can include a taxpayer’s election not
to e-file. No practitioner waivers are available.
Connecticut agency regulations Section 12-690-1 require tax preparers who prepared
50 or more CT income tax returns during any calendar year to e-file all CT income tax
returns. Preparers may obtain a one-year waiver from the e-filing requirement by
establishing that they cannot e-file a return without experiencing an “undue hardship.”
Regs. Section 12-690-1
A corporation in Florida must file and pay its income tax electronically if it paid
$20,000 or more in tax during the State of Florida’s prior fiscal year (July 1–June 30).
File Florida corporate income tax with the Florida Corporate Income/Franchise Tax
Return (Form F-1120), and file through the IRS’s 1120 Federal/State Electronic Filing
Program using approved software.
Effective January 1, 2012, paid preparers who file more than ten (10) IL individual
income tax returns must file those returns electronically.
The majority of returns, more than 62%, are already e-filed. e-Filed returns are processed
more quickly, resulting in fewer errors and faster refunds to taxpayers.
Tax Year 2012 E-1