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Q & A: Required Electronic Filing for Tax Professionals


  1. If I have more that one location will both be required to efile?
  2. My business is located outside of Connecticut; does the Regulation apply to me?
  3. I cannot comply with the regulation this year; can I apply for a waiver?
  4. Will tax preparers be required to send in any paper documentation, such as copies of another state’s return, when a taxpayer claims credit for tax paid to another jurisdiction?
  5. Is there a separate signature requirement for Federal and State returns?
  6. If federal rules prohibit me from filing my client's federal return electronically  but I am mandated to electronically file the Connecticut return, what should I do?
  7. If the taxpayer e-files the return early in the season but schedules payment for April 15th, will the taxpayer receive a bill each month?

Answer: Tax practitioners that prepared 50 or more prior year Connecticut Income Tax returns will be required to file electronically.


Q2. If a tax preparer prepared 25 CT-1040NR/PYs and 25 CT-1040s last year, does that trigger the requirement to file all current year CT-1040NR/PYs and all CT-1040s electronically?

Answer:Yes.  Any combination of individual Connecticut income tax returns filed by the tax preparer in the prior year that adds up to 50 will trigger the requirement.  However, this requirement only applies to the individual income tax series. 


Answer: You will be notified by mail by the DRS that you will be required to file electronically.  If you are unsure you can call the Electronic Filing Help Desk at 860-297-4713 after November 15 to find out if you are required to file.


Answer: The 50 return threshold is based on the total number of returns prepared by all of your employees.


Answer: If you prepared more than 50 returns the regulation will apply, regardless of your location.


Q6. I received a letter indicating that I have to file electronically, how do I get started?
 
Answer: In order to file returns electronically, you need to become an Electronic Return Originator (ERO).  The Internal Revenue Service must approve all ERO's.  Please see the IRS website for Tax Professionals for information on how to apply.  The approval process takes about 45 days.  Once you have been approved by the IRS, you will be assigned an Electronic Filing Identification Number (EFIN).  The IRS approval qualifies you to electronically file Connecticut returns; however, if you are located outside of Connecticut, please fax a copy of your approval letter to DRS Electronic Commerce Unit at 860-297-4761 or mail a copy of your approval letter to:

Department of Revenue Services
Electronic Commerce Unit
450 Columbus Blvd. Ste. 1
Hartford, CT 06103


 
 

Answer: The approval from the IRS takes approximately 45 days.   Once the IRS approves your application you are automatically qualified to file electronically in Connecticut.


Answer: No.  If you are already approved by the IRS and have a valid EFIN, you do not have to apply.


 

Answer: Electronic Filing:


 
Answer: The costs of electronic filing may include:
  • Electronic Filing Software (some packages are available that include unlimited transmission of federal and state returns)
  • Costs associated with changing procedures for preparing tax returns.  For example, a return that has been rejected must be corrected immediately, rather that after the filing season ends.
  • Costs to upgrade computers and communications equipment if outdated.

Q11. Where can I find a list of approved software developers?

 

Answer: To find a list of approved software developers, please visit our approved software developers webpage.


 

Answer: You should explain the benefits of filing electronically to your client.  If he or she still does not want you to file the return electronically, you must attach a letter signed by the client to the client's paper Connecticut return indicating the client has opted to not have the return filed electronically for the specified tax year year.


Q13. Does this Regulation require that I file other returns electronically?

Answer: This regulation applies only to Connecticut personal Income Tax Returns. This is a separate regulation that requires payment by EFT for some business taxes.  


Q14. What if I do not comply with the Regulation?
 

Q15. I cannot comply with the regulation this year; can I apply for a waiver?
 
 
Department of Revenue Service
Electronic Commerce Unit
450 Columbus Blvd. Ste. 1
Hartford, CT 06103
 
You must clearly indicate why the requirement causes undue hardship and provide a list of all factors that make it difficult for you to file returns electronically.  These requests will be handled on a case by case basis and you will only be notified by DRS if your waiver is denied.

 
Q16. Will tax preparers be required to send in any paper documentation, such as copies of another state’s return, when a taxpayer claims credit for tax paid to another jurisdiction?

Answer: Practitioners are not required to send any documentation to Connecticut when they use efile.  All supporting documents (W-2's, 1099's, copies of other states’ returns) should be retained by the preparer for three years to be furnished to the DRS only upon request.  e-file is a truly paperless process... (As a note, Form CT-8453 has been retired.  This form no longer exists.)  

Q17. Is there a separate signature requirement for Federal and State returns?

 

Answer: No.  DRS accepts the federal signature as our own signature.  Depending on what Federal Signature Option the preparer uses, all backup documentation should be retained with either the Federal Form 8879 or Federal Form 8453 for three years, to be furnished to DRS only upon request.

Q18. If federal rules prohibit me from filing my client's federal return electronically  but I am mandated to electronically file the Connecticut return, what should I do?

 

Answer: If the client is a resident of Connecticut who filed a Connecticut return in the prior year, you can use the TSC to file the Connecticut return, thereby meeting the electronic filing requirement.  If you cannot use the TSC to file the Connecticut return, you should attach a cover letter to the paper Connecticut return stating that your client's return cannot be e-filed for federal purposes and, therefore, you cannot efile the Connecticut return.

Q19. If the taxpayer e-files the return early in the season but schedules payment for April 15th, will the taxpayer receive a bill each month?

 

Answer: No. The Department will not bill the taxpayer unless there is a balance due after April 15th. However, if the taxpayer files early and does not schedule an electronic payment, the Department will send a reminder notice with a bill payment stub to the taxpayer stating that the return was filed and the balance due must be paid on or before April 15th.