Content area
Full Text
Federal and state governments have found that receiving tax returns electronically is far less expensive than processing paper ones. With budgets being strained, governmental agencies have been strongly encouraging electronic filing (e-filing).
The states have encouraged it by requiring it in certain circumstances. For example, Massachusetts requires efiling and e-payment of all taxes of existing corporations, partnerships and fiduciaries that meet certain income thresholds; see MA Taxpayer Information Release (TIR) 05-22. Practitioners who prepare 100 or more individual tax returns must e-file; see MA TIR 04-30. Other states are not as comprehensive in their requirements, but are definitely moving in that direction.
While the states have been taking a "stick" approach with their mandates, the Federal government has taken the "carrot" approach, by offering e-services for practitioners.Tax advisers who file five or more electronic individual returns over two years may apply for eservices, making resolving issues with the Service much easier; see "IRS e-file Application Updates," at www.irs.gov/ efile/article/0,,id=98246,00.html.
Practitioners who do not yet use eservices should consider e-filing Form 2848, Power of Attorney and Declaration of Representative; resolution of account disputes; and account access.
POAs
The power of attorney...