Federal/State Electronic Filing
for Tax Professionals

INTRODUCTION

This program lets you prepare and file both your federal and state income tax returns electronically at the same time.

OVERVIEW

Federal/State Electronic Tax Filing allows the filing of both federal and state income tax returns electronically at the same time. The electronic filing software places your federal and state return data in separate packets. These packets are transmitted to IRS in one taxpayer "envelope." The IRS functions as an electronic post office for the participating states, who retrieve and process the state electronic returns.

QUESTIONS AND ANSWERS

What is Federal/State Electronic Filing? How does Federal/State Electronic Filing benefit me? Why should I file electronically? Can all Federal and State returns be filed electronically? How can I learn more about this program?

Q. What is Federal/State Electronic Filing?

A. Its a cooperative one-stop electronic income tax filing program between the IRS and most state tax administration agencies. This program allows the electronic filing of both federal and state income tax returns through the IRS Electronic Filing System.

Q. How does Federal/State Electronic Filing benefit me?

A. You save time and make it more convenient for your clients when you prepare and transmit both federal and state tax returns at one time.

• Your clients will also have the peace of mind that they've met all their obligations at once. The IRS and state agency will let you, the transmitter, know that both returns have been received.

• Your clients can have their refunds directly deposited into their savings or checking accounts (for IRS and most state returns.

• If your clients have a balance due, you can file their returns early and they won't have to make any payment until April 15 (for IRS and most state returns).

• Tax preparation software eliminates math errors you may make and electronic filing eliminates processing errors the IRS may make.

• You save time researching and correcting erroneous returns now, rather than months down the road.

• You'll have an edge over other tax professionals who don't offer this service.

• You'll have increased business opportunities and a new service to offer clients.

Q. Can all federal and state returns be filed electronically?

A. Most federal and state tax returns can be filed electronically. Check with your tax professional, local IRS office or state tax administration office to see if this service is available.

Q. How can I get more information?

A. Additional information is available at our toll-free telephone service (1- 800-829-1040), or the IRS Bulletin Board (606) 292-0137. Publication 1345, Handbook for Electronic Filers of Individual Income Tax Returns can be downloaded from the bulletin board. In addition, Electronic Filing Coordinators and State Electronic Filing Coordinators are available to respond to your questions.

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