User's Manual - Drake Software

Drake Software User’s Manual
For purposes of this law, the business entity, as a whole, is the “preparer.” If the business
employs individuals to prepare returns, the total number of returns prepared by
all employees in the business count toward the 10-return threshold. Likewise, if the
business operates from multiple locations, the total of returns prepared by all locations
count toward the threshold.
Nebraska
New Jersey
New Mexico
New York
Effective Jan. 1, 2010, any paid preparer who prepares and files more than 25 individual
income tax returns annually must file the returns electronically.
Practitioners who prepared 11 or more NJ resident income tax returns must file their
clients’ returns via one of the state’s three e-filing services. An E-File Opt-Out
Request Form, Form NJ- 1040-O, is available for taxpayers who choose not to have
their returns e-filed by a tax practitioner.
Mandatory e-file of PIT returns by preparers filing more than 25 returns; taxpayers
can opt out in writing; penalty for noncompliance $5 per return.
1. If a tax return preparer prepares 11 or more authorized tax documents for compensation,
then all authorized tax documents prepared by that tax return preparer must
be e-filed. There is no client opt-out provision. Tax preparers who do not comply
with the e-file mandate may be subject to a $50 per document penalty.
2. Individual taxpayers are required to e-file their NYS personal income tax returns
if they meet the following conditions:
– They use tax software to prepare their own return
– Their tax software supports e-filing of their return
– They have broadband access
New York State law prohibits software companies from charging an additional e-filing
fee. If individual taxpayers don't meet all three of these conditions, or if they prepare
returns using paper and pencil, they are not required to e-file.
The $25 penalty that applied when an individual was required to e-file but instead
filed using paper has been removed.
New York
City
New York City instituted a preparer mandate for the first time for tax year 2010. No
change has been made to this mandate for tax year 2011. Preparers must e-file if they
both:
• Prepared more than 100 original New York City General Corporation Tax or
Unincorporated Business Tax documents in calendar year 2011, including tax
documents for prior periods
• Used tax software to prepare one or more corporation tax documents in 2011.
Tax preparers who meet the mandated criteria above cannot opt-out of the e-filing
mandate. If a taxpayer wants to opt-out, he or she must apply for a hardship waiver
available at:
www.nyc.gov/html/dof/html/contact/contact_emailefilewaiver.shtml.
Ohio
A tax return preparer that prepares more than 11 original tax returns during any calendar
year that begins on or after January 1, 2013, shall use electronic technology to file
E-4 Tax Year 2012