A wrote:
- quote -

I would offer just one correction and that to your last
phrase to read:
" ......unless you process hundreds of returns".

ChEAr$,
Harlan Lunsford
Sun, 16 Jan 2005

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"Jennifer D" <best_scrivener[at]yahoo.com> wrote:
- quote -

E-Filing has nothing to do with the paper forms as you know
them. Transmitting return data to the IRS is done in an
array of data protocols. The software programs take the
information you enter, whether in an interview format or
simulated forms, and format it into an electronic format
that the IRS computers process. E-Filing is not simply
emailing a replica of a paper form to the IRS.

The software that transmitters use is complex and must go
through a testing process before it can process transactions
with the IRS computer. To be a transmitter you would have to
develop your own software, or buy transmitting software that
is probably cost prohibitive unless you process thousands of
returns.

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A couple of comments ...

- quote -

Most e-filers are NOT transmitters. They e-file thru the
company they bought the software from, like ATX or Intuit
(ProSeries) or Second Story (TaxAct). Sometimes there is a
per-return fee for this, or a flat fee for unlimited
e-filing, or the fee is simply built into the price of the
software.

Transmitters e-file directly into the IRS computers. There
is no fee for this, but the software generally costs more.
None of the lower cost sofware packages (ATX, TaxAct,
ProSeries Basic/Express) support direct e-file.

- quote -

E-file is a method of entering the return directly into the
IRS computers, without the need for additional human
assistance. So if you could just e-mail a Word document to
the IRS, they would still need a human to read it and enter
the numbers into their computer. E-file does NOT use e-mail.
It's a special format designed by the IRS. Until this year
all e-files submitted to the IRS computers arrived over
dedicated or dialup telephone lines, not the internet. The
IRS is slowly adding secure internet capability. But by
simply e-filing thru your software vendor, you don't have to
worry about any of that - you can concentrate on "doing the
taxes."

(http://www.irs.gov/efile/article/0,,id=123210,00.html)

--
Don EA in Upstate NY

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Phoebe, thanks for sharing your experience with AXT.

Also, you told me that applying to be a transmitter is a
hassle. Well, I saw where the IRS gives you instruction on
how to do it. It does seem like it will take some time. I
guess I might shoot for next year on that one. You are quite
funny when you say that "your question is like asking why do
I need paper to print a letter." Of course, what might be
easy to explain to me in real life is a lot harder through
email. I guess I am just wondering WHY the software people
don't make their docs in Word and then I can save it and
email it. Does it have to be more complicated than that?

Thanks again, Phoebe.

Jennifer DeBoer

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best_scrivener[at]yahoo.com wrote:

- quote -

We're using ZillionForms, which is owned by ATX, for
miscellaneous forms our normal software won't do. In the
past, we've used SuperForms (also owned by ATX) for that
purpose. In my experience, ATX's technical support is
lacking, and has long hold times.

My most recent call to their technical support was regarding
e-filing W-2s and 1099s in the 2003 package, which I was
trying to figure out before the 2004 package came out, so
I'd know if we needed to order paper forms.

Me: I'm trying to figure out how to e-file W-2s, and I get a
little pop-up window that says I need to register with you
first. How do I register?

TechPerson: You go into <screen> and enter your credit card
number.

Me: But I have free unlimited W-2 and 1099 e-file.

TechPerson: Yes, but our system requires your credit card
number anyhow. We won't charge you.

Me: And that's all I need to do in order to send my W-2s and
1099s off to the government?

TechPerson: E-filing doesn't actually send anything to the
government; it just sends it to us. Then we print out your
W-2s and mail them to the employees.

Me: It seems unlikely to me that you'd give me an unlimited
number of 37 cent stamps for free.

TechPerson: That doesn't make sense, does it? But that's
what it says you get!

Me: Are you sure you aren't thinking of QuickSend, and not
e-filing? TechPerson: Hold on, let me check with someone.
<time passes> Yes, you're right, that's QuickSend.

The prior year, I had a similar conversation regarding an
installation program that could only be resolved by giving
me a network installation code (which I was entitled to
under the terms of the license agreement).

It took 3 layers of customer support (each trying to fix
what they thought was the problem, because I couldn't
possibly know what was happening on my computer) before they
finally gave it to me.

I know a person who does all her returns on ATX, and is
delighted with them, but you couldn't pay me enough to do
1040s with them.

- quote -

ProSeries is owned by Intuit. Lacerte (what we use) is also
owned by Intuit. Lacerte is expensive (I think something
like $40 for Federal and one state for entities, and maybe
$30 for individuals), but generally does a good job
(especially for oil and gas, which we do enough of to care).
I've always found their tech support to be friendly and
helpful unless the answer is "our software doesn't do that,"
in which case they've been indifferent.

- quote -

You don't, but going through the approval process to become
a transmitter (so you can file directly with the IRS) is
going to be more of a hassle than paying your software
vendor. The question you're asking is sort of like "Why do
I need software to print a letter from my computer?" You
could probably muck around in DOS and get something to come
out of the printer, but your time is hopefully worth more
than that.

Phoebe

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Hello,

I am starting a tax prep business this tax season. I too am
wondering which software to buy. Has anyone tried Worldwide
Web Tax?

ATX seems slightly more pricey than TaxAct. Is there an
advantage?

Those of you complaining about the tech support for
ProSeries..is that TaxAct?

Also, I am wondering *why* do I need software to efile?

Thanks!!!

Jennifer DeBoer
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- quote -

I'm not sure, but doesn't Turbo Tax have a pay per return use?

Carol
It's a cats world. I'm just here to open the cans.

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"Manc" <danman[at]snet.net (nospam)> wrote in

- quote -

Look at Tax Act, by Second Story Software. Full
professional s/w with client manager facility for $99
Federal. All-states for another small sum, or $13 per
state. It's the one I use, and I've been very happy with
it.

Catherine

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"Manc" <danman[at]snet.net (nospam)> wrote:

- quote -

Dan, since you are familular with turbotax, you may want to
look into pay per return of the ProSeries version of
turbotax. You will not have to pay the full amount like we
others have to pay. You will pay only for what you use. I
buy the full 1040 package and my state, then pay per return
for the other states and trusts and estates, etc.

Missy Doyle

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"Manc" <danman[at]snet.net (nospam)> wrote:

- quote -

Check out Intuit's ProSeries. It costs $525 for an
unlimited license. They offer a license that lets you
prepare a limited number of returns for about $250.

http://www.proseries.com/products/basic/index.aspx

- quote -

No. The consumer version of TurboTax won't let you make
entries in the paid preparer section at the bottom of page 2
of Form 1040.

Barney Byrd

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"Manc" <danman[at]snet.net (nospam)> wrote:

- quote -

Being an EA is not required to be able to prepare returns
for pay, although it can help in marketing your business. It
still comes down to your competence and experience.

- quote -

Check out Intuit's Pro Series software. If you have a low
number of clients, the software is offered on a Per Return
basis (both prep and e-file, including state-specific) for a
reasonable cost (one time $75 + per return fees for each
product). In future years, as your client base increases,
you can switch over to the full, unlimited, product.

- quote -

Turbo Tax, for obvious reasons, does not offer that option.
The software is not intended for use by paid preparers and
the "self-prepared" is automatically printed on all returns.

- quote -

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"Manc" <danman[at]snet.net (nospam)> wrote:

- quote -

Check out the Pro-series from TaxAct.

https://www.taxact.com/

--
To reply to me directly, remove the XXX characters from my email address.

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- quote -

I used TaxAct last year and was quite satisfied with the
preparer's edition. It only cost $99! And you can get All
States edition for less than $60.

My only complaint so far has been that the All States only
does full year resident returns. I had to do the part-year
and nonresident returns by hand.

But that's a small sacrifice for the great price.

Kate, EA in PA

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Manc wrote:

- quote -

We use Lacerte. IIRC, the deposit is on the order of $175,
and pay per return is ~$30 a client, which uses up your
deposit until it's either gone (then they bill you) or you
stop doing returns for that year (and they keep what's
left). I'm not the person who handles ordering, so I'm
going by memory on the charges, but that's in the ballpark.

- quote -

I believe that would be a violation of the license
agreement.

Phoebe

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- quote -

Many of the professional packages have a pay-per-return
option that could work for a few returns. ATX, for example,
has a $15 per return fee (plus the basic software license).
UltraTax has higher per-return fees, as does ProSystem Fx.
But you need to consider the entire cost from each vendor,
as well as your comfort level with the data input and the
"look" of the output (I'd focus on the non-official pages,
since that is what creates the look of the package to the
client).

--
Thomas E Healy, CPA, PC
1650 38th St., Ste 202W
Boulder, CO 80301
Please send email to: tom[at]tomhealycpa.com, since I block all email at my
newsgroup address.
phone (303) 443-1804
fax (720) 489-3772

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- quote -

Congrats!

- quote -

Look for pay for return software. And there are other
software products available. I think TaxWise is fairly
inexpensive.

- quote -

See above. Many softwares have a pay per return feature.

- quote -

First of all, you can't. Secondly you are violating the way
the software is to be used (remember - ethics) and thirdly,
how can you charge someone more than they can go out and pay
for the same software and sleep at night?

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Manc wrote:

- quote -

Take a look at TaxACT: www.taxact.com

Their "preparer's" edition is under $100 bucks (as I recall).

- quote -

That would probably violate the terms of their licensing
agreement. I wouldn't do that if I were preparing returns
for OTHERS who might not wish to be dragged into your
non-complaint scheme.

MTW

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Recently became an enrolled agent and expect to represent
taxpayers before the IRS. I'm thinking of accepting
several clients for return preparation-1040's with scheds A,
B, C & D , for the most part. I've always used turbo-tax
for my own return and those that I've prepared for family. I
have done a cursory check of the web for Professional Tax
Preparation software-those that discovered were geared for
the professional with a substantial client base (somewhat
expensive). If I prepare only 10-50 tax returns, it may
not be worth spending $1500-$2500 on software. Turbo-Tax
(retail) is obviously made for self-preparation. "The term
"self-prepared" is printed on the 1040 (in preparer's
signature section). Two questions:

1. Could you suggest a decent tax prep software for my
purposes? (preferably less than $300)

2. Could I use the Turbo Tax software to prepare returns for
compensation if I am able to insert my id and delete
"self-prepared"?

Suggestions from tax professionals would be most appreciated.

Thanks,
Dan

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