Working with remote colleague

[Strongsilence-CPA]

I decided to make some income by letting someone else use my software.  She is an enrolled agent and I trust her. (Has worked with HRB for a decade and decided the environment wasn't right for her.) She will be working on her clients. I'll charge her $20 per return and a consulting fee for my time to assist her with software and filing issues. 

There is more for me to learn.  Will she need to be an ERO is one question.

Security is needed. I put passwords on all my clients.  She has updated all her computer equipment.  I need 2FA for her account.

[sjrcpa]

She better be signing under your firm name and using your EFIN. Otherwise she needs her own software license.

[Strongsilence-CPA]

This is a useful comment. We are not trying to avoid a license. I added her and paid the Lacerte fees.

[sjrcpa]

As a user on your account?

That's different than a separate license.

[Strongsilence-CPA]

I disclosed all the details about our relationship and was transparent that about my business and Intuit advised nothing more than adding a user to my account.  She is filing under my Efin. I think an additional software license isn't required.

[George4Tacks]

That sounds like the page 2 of 1040 will show it is prepared by your office with your address and EFIN, but the paid preparer will show this other person's name. My guess is that any contact info will also be your business name and number on the client letter, invoice, etc. 

Is this what you intended? 

[sjrcpa]

I agree. You didn't have all that info in your OP.

I did not mean to imply you were doing anything wrong.

She does not need to be an ERO. 

[itonewbie]

The ones that George highlighted would be my concerns.  Understand you trust this person and would like to defray part of the cost of your software license by charging this lady a fee for every return she prepares and for your time helping her with the software.

Since she will be transmitting returns using your EFIN, you will be personally responsible for all returns transmitted using your EFIN and could be subject to sanction for failing to comply with any requirement or provision for e-filing.

Also, your company name will be attached to every single return she prepares.  This could potentially be a reputational risk (and possibly a legal one too) if things go awry.  It would be different if she were your employee under your direct supervision and were allowed to access your account/resources using only company-issued hardware with company-managed security setup.

However low the risk may be, are you sure you want to stick your neck out for $20 per return (plus some pocket change for "consulting fees") when you are not actually supervising her or in control of what she (or a hacker) may do?

[itonewbie]

IMHO, she'd be better off getting a PPR license and her own EFIN.  The cost may be slightly higher than paying your $20 per return but that's the cost of doing business and it's a much cleaner setup from her perspective and yours.

[Strongsilence-CPA]

I so appreciate the advice from all of you.  There is more to this community than I realized.

I admit to the lure of a bit of "passive" income. After reading these comments, I now admit to myself the seriousness of this endeavor so that I then can instill in her the responsibility that is on me.

she'd be better off getting a PPR license and her own EFIN". I'll look at that.