User's Manual - Drake Software

Drake Software User’s Manual
Opt-out Information: If a client refuses to allow you to e-file his or her return, you can
remain in compliance with the mandate by having your client complete and sign Form
IL-8948, Electronic Filing Opt-Out Declaration. Retain all Forms IL-8948 you receive
from your clients in your files for three years. The department may request copies at
any time.
Form IL-8948 is available through Drake Software.
Indiana
Professional tax return preparers who files more than 50 personal income tax returns
in a calendar year for resident or nonresident individuals must file personal income tax
returns in an electronic format in the immediately following calendar year. If a tax preparer
is part of a firm, the mandate applies to the firm as a whole. If an individual
employed by the firm prepares more than 100 returns for clients other than the firm’s
clients, that individual must also e-file the returns. Amended returns are not counted
because they cannot be e-filed.
A paid preparer’s client may refuse to allow his or her income-tax return to be e-filed.
In order for the preparer to avoid being penalized for not e-filing the tax return, a completed
Form IN-OPT must be signed by the client, and the paid preparer must keep this
form on file for five years.
Professional preparers are subject to a penalty of $50 for each return not filed in an
electronic format, with a maximum penalty of $25,000 per calendar year.
Kansas
Kentucky
Louisiana
Preparers who file 51 or more returns a year are required to file at least 90 percent of
their returns electronically. The requirement applies to any paid preparer who prepares
51 or more Kansas individual income tax returns during any calendar year. The combined
total of the returns prepared by all employees at all of the tax preparer's locations
will be used to determine whether or not the tax preparer is subject to the e-filing
requirement. The Secretary may waive the e-filing requirement if it is determined that
complying with the requirement would cause an undue hardship.
Tax preparers who file 11 or more individual income tax returns are required to e-file
their client’s returns. There are some exceptions to the mandate. Form 8948-K (Preparer
Explanation for Not Filing Electronically) is used to explain why a particular
return is being filed by paper. The form should be attached to and mailed with the
paper return.
The e-filing mandate requires tax preparers filing more than 100 individual income
tax returns to e-file at least 90 percent of the returns, as authorized by Louisiana
Revised Statute 47:1520.
Failure to comply with the e-filing requirements will result in the assessment of a penalty
of $100 or five percent of the tax, whichever is greater. The e-filing requirement
may be waived if complying with the requirement would cause undue hardship.
Maine
Tax return preparers must file by electronic data submission all original Maine tax
returns for individual income tax that are eligible for electronic filing, except:
• When for the previous calendar year, the tax return preparer prepared 10 or fewer
original Maine tax returns for individual income tax that are eligible for e-filing
E-2 Tax Year 2012