User's Manual - Drake Software

Drake Software User’s Manual
• When the taxpayer refuses to allow the return to be e-filed and the tax return preparer
notes the refusal in the taxpayer’s records
• When the tax return preparer has been granted a waiver from mandatory participation
under section .05 (Rule 104).
Maryland
Massachusetts
For any taxable year beginning after December 31, 2010, a preparer who has prepared
more than 100 qualified returns in the prior taxable year is required to file the returns
electronically. The Act authorizes the Comptroller to impose on a preparer a $50 penalty
for each return that is not filed electronically in compliance with this Act, unless
the preparer is able to show that the failure to comply is due to reasonable cause and
not due to willful neglect. The total penalties assessed may not exceed $500 for all
returns filed by the preparer in a taxable year. Waivers are available. Tax-General Article
§10-824
Paid preparers must, under certain conditions, e-file all corporate, S corporation, and
partnership returns and corporate extensions.
Additionally, the Commonwealth of Massachusetts requires personal income tax
extensions with zero payment or with payments of $5,000 or more to be filed (and
paid, if applicable) electronically.
For tax years beginning on or after January 1, 2004, income tax return preparers who
completed 200 or more original Massachusetts Forms 1 and 1-NR-PY, including those
e-filed, during the previous calendar year are required to use electronic means to file
all personal income tax returns unless the taxpayer specifically directs on the paper
form that filing be on paper. The threshold is reduced to 100 returns for tax years
beginning on or after January 1, 2005. The preparer must continue using electronic
means to file returns in all subsequent years unless the preparer completed no more
than 25 original individual income tax returns during the previous calendar year.
(Note: Effective February 16, 2004, software-generated forms that are printed and
mailed to the Department of Revenue must contain a 2-D barcode or the return will be
sent back to the taxpayer unprocessed.)
Michigan Tax preparers completing more than 10 personal income tax returns are required to e-
file all eligible returns that are supported by their software.
Minnesota
Preparers are required to e-file all Minnesota individual income tax returns if they are
in the business of preparing tax returns and reasonably expect to prepare more than 10
MN income tax returns this year. This requirement also applies to preparers located in
other states who expect to prepare more than 10 MN individual income tax returns for
the current year. Do not include in the 10-return threshold returns prepared for businesses,
property tax refund returns, amended income tax returns or returns filed with
other states.
State law (M.S. 289A.08, subd. 16) requires tax preparers who are required to e-file
MN individual income tax returns to pay a $5 fee for each original Form M1 that is
filed on paper that could have been e-filed. The fee will be waived only if the IRS or
the department requires the federal or MN return to be filed on paper.
Tax Year 2012 E-3