Starting January 1, 2011, the IRS requires preparers who anticipate filing 100 or more federal individual or trust tax returns during the year to file these returns electronically. (Starting January 1, 2012, this number will be reduced to 11 returns or more.) If the preparer is a member of a firm, this requirement applies to the firm's total number of returns filed.
Form 8948, Preparer Explanation for Not Filing Electronically, is available for reasons for not E-Filing such as Taxpayer does not want to E-File their return. This Form should be used to explain the reason you cannot meet the above requirements for a federal or trust tax return that you prepared for your client. Form 8948, must be attached to the tax return that is mailed to the IRS. A copy of this form should also be provided with your clients copy of their individual or trust tax return.
How to generate Form 8948:
- On the Detail tab, Click Screen 1 Client information and Uncheck Efile.
- Go to Screen 2.2, Electronic Filing (US, MA, NY, WI).
- In the Section list, select Form 8948 Preparer Explanation for Not Electronically Filing.
- Complete the applicable input for the reason not filing electronically:
- Taxpayer chose to file return on paper - Check the box if the Taxpayer chose to file the return on paper. This input will also trigger the Form 8948 Taxpayer Opt Out Statement consent form for the preparer to keep on file.
- Preparer is a member of a religious group opposed to e-file - Check the box if the preparer is a member of a religious group opposed to e-file.
- Complete the Return Rejected by IRS section if the return was rejected by IRS e-file and the reject condition could not be resolved.
- Complete the Software Items not Supported section if the preparer?s e-file software package does not support the form for e-file.
- Preparer is Ineligible to file electronically because IRS e-file does not accept foreign preparers without SSNs - check the box if the preparer is ineligible to file electronically because the IRS e-file does not accept foreign preparers without SSNs that live and work abroad.
- The preparer is currently ineligible to e-file due to an IRS sanction - check the box if the preparer is currently ineligible to e-file due to an IRS Sanction.
- Describe other reasons the preparer is unable to e-file (Ctrl+E) - Describe below the circumstances that prevented the preparer from filing this return electronically
- View Form 8948 on the Forms tab. The program will also generate an e-file Opt Out statement for the taxpayer to sign.
If the Form 8948 is not generating, view the Diagnostics tab. If generating the Informational Diagnostic below, you must set the option Form 8948 (under Tax Return options) to When Applicable.
Form 8948: Starting in tax year 2010, the IRS is mandating individual e-file for anyone preparing more than 100 returns. Entries for not filing the Federal return electronically has been entered in 8948 Preparer Explanation for Not Filing Electronically (Screen 2.2), but the Form 8948 User Option is currently set to "Suppress." Please double check your inputs or verify that the option is set to "When Applicable" if you need to file Form 8948. (ref. #15453)