Paperless e-file
PrerequisitesYou should be familiar with or have completed the Entering Client Detail exercise in this section, and the Tax Return exercise in the Before You Prepare a Return section of the Program Operations tutorial. ObjectiveIn this exercise, you will make entries required for a paperless e-file return. |
LESSONS
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Facts
Use the sample client (TUT-EF1) you created in the Entering Client Detail exercise and enter the following information in Screen 4.1, e-file PIN Main Form:
| Paperless Filing | Data entry: |
| Signature date | today's date |
Program Considerations
Paperless e-filing is the default method used in the Lacerte tax program. A paperless e-file means that the IRS will not be expecting any paper return items to be sent in after transmitting the return electronically. It is not a paperless process for you, the Electronic Return Originator (ERO), as you must retain Form 8879, IRS e-file Signature Authorization for 3 years. This is similar to Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return, which must be mailed to the service center where the e-file was transmitted within three business days after receiving the "accepted" acknowledgement (the traditional non-paperless e-file process).
When you create an electronic file in Lacerte, the program default is to generate the IRS e-file Signature Authorization form and automatically assign the 5-digit PIN(s) required for paperless e-filing (covered in the Tax Return exercise referenced in the Prerequisite section above). Based on the program defaults, the only entry you should have to make on a return would be entering the Taxpayer's signature date in Screen 4.1, e-file PIN Main Form (see e-file PIN Main Form below).
Screen 4.1, e-file PIN Main Form:
| Use this field: | To: |
| Computer date as PIN signature date [O] |
Eliminate the need to enter the PIN signature date. The program will automatically use the current computer date when the return is transmitted for electronic filing. The program does not print the current computer date on Form 8879; the computer date is only sent as part of the e-file. The program default under Tax Return Options is set to No, which requires a PIN signature date be entered in the Paperless Filing Signature Section of the Electronic Filing Screen for all returns using the e-file PIN Signature. Changing this option to Yes will alleviate the need to enter the PIN signature date. Note: The date entered on Form 8879 by the taxpayer must match the date entered in this field. Only use the Computer date as PIN signature date when you will be transmitting the e-file on the same day that Form 8879 is being signed and dated. An Informational Diagnostic will be generated when this option is selected. |
| Taxpayer's signature date | Enter the date that form 8879, IRS e-file Signature Authorization, was signed by the taxpayer (and spouse if applicable). |
| e-file PIN signature: 1=when applicable, 2= suppress [O] |
Override the "e-File PIN signature" user option in the Tax Return options. The program default is set to when applicable, which will allow you to e-file all applicable e-file returns using Form 8879, IRS e-file Signature Authorization, alleviating the need for Form 8453 to be mailed to the IRS. If the e-File Pin signature option is set to suppress and you wish to e-file this return using the PIN method, enter a 1 in this field. If the e-File Pin signature option is set to when applicable and you do not wish to e-file this return using the PIN method, enter a 2 in this field. |
| Computer generated PIN(s): 1=yes, 2=no [O] |
Override the "Computer Generated PIN(s)" user option in the Tax Return options. Beginning in tax year 2004, the IRS allows PIN signatures to be computer generated when using the paperless signature method. Use this field to The program default is set to Yes which will alleviate the need for you to enter the Taxpayer (and spouse if applicable) PIN(s) for each client. If the Computer Generated PIN(s) user option is set to yes, the program will generate a PIN signature for each client who is using the PIN signature(s) method. If the user option is set to Yes and you do not want the program to generate the taxpayer (and spouse if applicable) PIN, enter a 2 in this field. If the Computer Generated PIN(s) user option is set to no, the program will not generate a PIN signature for each client who is using the PIN signature(s) method. If the user option is set to No and you want the program to generate the taxpayer (and spouse if applicable) PIN enter a 1 in this field. |
| PIN [O] for Taxpayer/Spouse | Override the computer generated PIN which prints on Form 8879, IRS e-file Signature Authorization. Entries in these fields are necessary only if using the paperless signature method for this client and the Computer Generated PIN is not being used. The PIN must be five numeric characters and cannot be all zeros. |
| PIN authorization (Ctrl+T) [O] | Select the method by which the PIN(s) were entered into the program if not using the Computer Generated PIN. An entry in this field is necessary only if using the paperless signature method and the Computer Generated PIN is not being used. |
| Print Form 8453 on paperless e-file [O] |
Override the Tax Return user option to print Form 8453 on a paperless e-file return. Form 8453 is not required to be signed or mailed to the IRS when e-filing using the paperless signature (PIN) method. The program defaults to "No" which will not print the form 8453 when using a PIN signature. If the "Force 8453 on Paperless e-file" user option is set to No and you wish to print the 8453 with the PIN signature, enter a 1 in this field. If the "Force 8453 on Paperless e-file" user option is set to Yes and do not you wish to print the 8453 with the PIN signature, enter a 2 in this field. |
| ERO's PIN [O] | Override the ERO PIN located in the User Options Preparer Information for the preparer assigned to the return in the Client Information screen. The PIN must be five numeric characters and cannot be all zeros. E-filing a return using the paperless signature (PIN) method requires the preparer or Electronic Return Originator (ERO) to have a PIN. The PIN is the ERO signature on Form 8879, IRS e-file Signature Authorization. The program automatically fills the ERO PIN for each preparer based on the preparer assigned to the return in the client information screen. |
How?
To create a paperless e-file:
- Access the Detail tab for client TUT-EF-1.
- Open Screen 4, Electronic Filing.
- Select e-file Signature Main Form in the EF list.
- Enter the information from the Paperless Filing table above.
Tips & Shortcuts
Form 8879, the IRS e-file Signature Authorization form can be printed as a PDF and e-mailed to your clients. This can eliminate the need for an additional office visit since they can fax or mail this form back to you. More information regarding the printing of these forms is discussed in the Validating & Printing section of this tutorial.
Review
You should now be familiar with the input required for a paperless e-file return.
Troubleshooting
Problem: I am confused by the other entries in screen 4.
Solution: Screen 4, Electronic Filing contains additional entries for some electronically filed returns; most e-file returns will not require you to use screen 4 at all. Use the F1 help function in the program for field specific help (select the field in question, then press [F1] on your keyboard).