Q & A: Required Electronic Filing for Tax Professionals
If a tax preparer filed 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-1040 and CT-1040EZs electronically?
How will I know if I am required to file electronically?
- If I have more that one location will both be required to efile?
- My business is located outside of Connecticut; does the Regulation apply to me?
I received a letter indicating that I have to file electronically, how do I get started?
How long does it take to become approved by the IRS and Connecticut?
If I am already an ERO, do I have to apply again?
What are the benefits of filing electronically as a preparer? As a client?
What are the costs of e-file?
Where can I find a list of approved software developers?
What if my client does not want me to efile his/her return?
Does this Regulation require that I file other returns electronically?
What if I do not comply with the Regulation?
- I cannot comply with the regulation this year; can I apply for a waiver?
- 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?
- Is there a separate signature requirement for Federal and State returns?
- 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?
- 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?
Q1. Who is required to file electronically?
Answer:Tax practitioners that prepared 50 or more prior year Connecticut Income Tax returns will be required to file 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.
Department of Revenue Services
Electronic Commerce Unit
450 Columbus Blvd. Ste. 1
Hartford, CT 06103
Answer: Electronic Filing:
- Allows the Department of Revenue Service (DRS) to process returns quickly and accurately, saving tax dollars.
- Taxpayers who have a return with a balance due can file early and can choose to pay the tax due anytime on or before April 15.
- Electronically filed returns receive an acknowledgement of receipt from the Internal Revenue Service (IRS) and the State of Connecticut and are verified to be mathematically correct, eliminating data entry errors and lost or misplaced mail
- 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.
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.
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.)
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?
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?