1. e-file Testing. We have been in close contact with representatives of the IRS and NJ, NY, and PA Departments as we prepare to submit the required samples for e-file approval. The IRS processes returns as they are received, thus allowing for testing (and any necessary re-testing) several times a day.
2. Stockpiling. After six weeks of e-mails and calls to the IRS, we finally received assurances from the IRS that the “stockpiling” rule will not apply until our e-file software has been approved.
3. Change from Legacy to Modernized e-file (“MeF”). For the curious, the change from the Legacy to Modernized e-file format can be oversimplified as follows:
Multiply this by about 2,000, and you’ll have some idea of the process that we are going through during this conversion.
4. Speed. Our initial tests show that the e-file data can be gathered from all of the necessary forms and schedules in a second or two (combined). Once we complete the data validation process, we’ll learn how many seconds will be added to the entire process. We believe, however, that the process will be substantially faster than it has been for the last four years with Legacy e-fliing.
5. Batch Processing. Time permitting, we plan to provide you with an option to check off returns from a list, then e-file an entire batch of previously validated returns with a single keystroke. Thus, when you do receive the software, it should take very little time to submit the returns that you have been gathering. You should continue processing your returns, validating them, providing them to clients, and sending out K-1s. This process has worked well for many of our customers during the past month.
Please check back here for updates on e-file as we move closer to shipment.
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