GRAVES & COMPANY,
P.C.
Certified Public Accountants
& Financial Advisors
SUCCESSFUL ELECTRONIC FILING!
The processing of electronic returns has been
more suuccessful than we could have possibly projected. The
transition for most of our clients was quick, easy and
efficient. And, for some of you, no more midnight trips to
the post office to make sure your returns were mailed in time
for the April 15th deadline.
The direct deposit was also very successful. In many cases,
clients received refunds within 7 days of the electronic
transmission. All in all, we were very happy with this new
process. Direct deposit is quick and easy. Many firms
are now recommending direct deposit to all of their clients.
We offer it as an option.
As you may or may not know, effective January 1, 2004, the
State of Michigan required practitioners who prepare 200 or
more Michigan Income Tax Returns (Form MI-1040) and credits
to file client returns electronically. This mandate was
intended to enhance the state's filing and audit processes
along with providing fast refunds, more accurate returns,
proof of filing receipt, electronic signatures and electronic
payments.
Several of our clients have already been notified that they
are also required to e-file their Single Business Tax
Returns. This notification will be sent to you from the State
of Michigan, Department of Treasury and should be forwarded
to our office with your tax information. There is a Customer
Service Number (CSN) on the form that is required for efiling
purposes. You should retain a copy of the Customer Service
Number (CSN) for your records.
The State of Michigan and the Federal Government have
approved Graves & Company, P.C. to submit all eligible
returns for electronic filing. The filing will be handled
internally at our office and you will receive notification of
transmission acceptance after you have returned the necessary
forms authorizing the transmission for both State and Federal
governments. All city returns are paper filed. As tax
practitioners, we are required to electronically file
(e-file) returns. In order to make this transition to
electronic filing, we will need your help.
Social
Security:
If you have not already done so, please provide copies of the
Social Security Card(s) for the taxpayer, spouse and
dependents we will be filing for. The name on your card
must match the name on the tax return or it will be rejected
for e-file eligibility. Appropriate name changes
concerning marriage, divorce, adoptions, etc. should be made
prior to sending your information to our office. You
can contact the Social Security Administration toll free at
1-800-772-1213 or go on line at www.socialsecurity.gov
for further information. Fees can increase
substantially if you are rejected during transmission and
your return has to be reassembled for paper file due to
incorrect social security numbers. If you are
rejected and we do not have a copy of your social
security card for verification purposes, additional fees
will be passed on to you.
Processing:
Your return will be processed in our office as usual. Once
your information is input into our computer system the
determination will be made as to your eligibility to
electronically file all or part of your return. You will
receive paper copies to file for all returns that are not
eligible and a complete "client copy" to be retained for your
records. Envelopes will be provided along with
vouchers, estimates, etc. for returns that have money due.
Your return can be e-filed any time, but all payments must be
paid no later than April 15th unless your return has been
extended.
How will you receive
your return?
You will receive your return(s) by mail or be called to pick
them up depending on your preference as stated on the "Data
Form". The costs for requested special handling such as
overnight, etc. will be included in your invoice. You will
not receive a filing copy if you are eligible to
e-file.
You will receive the original and a copy of Form 8879 -
Declaration for Electronic Filing with your completed return.
Your signature(s) are/is required on this form before we can
e-file your return. Signing this form is the same as
signing your return. The original must be signed and
returned timely in order to facilitate the transmission of
your return. Important - your return can not be e-filed until
we have an executed Form 8879 on file. The receipt of your
return by mail or pick-up does not mean your return has been
filed. You will note, the form requires a personal
identification number (PIN). For ease of filing, we
will assign the PIN number in our office. If we have not
received your Form 8879 by April 5th, 2005, we will
automatically file an extension of time to file your return
at your expense.
Confirmation of
Receipt:
We will mail your e-file confirmation receipt from the
Federal and/or State to you after we receive it. You should
retain the receipt(s) for a period of seven (7) years.
We understand that we will have some clients that will elect
not to e-file. Although we can encourage you to e-file, the
decision is still yours. If you elect not to e-file, your
return will be assembled and returned to you for signature
and mailing. Remember, paper filing could take up to seven
months for processing by the State of Michigan. Returns not
eligible for e-file will include, but not necessarily be
limited to:
Amended Return(s) for a
previous year
Filing of a prior year
return
Filing a fiscal year
return
Filing of MI-1040X - Amended
Income Tax Return
Filing of Form 3581 - Michigan
Historic Preservation Tax Credit
It is apparent the list of acceptable e-file forms will
continue to expand until all forms will be filed
electronically.
Paperless filing is the wave of the future and we are happy
to be part of this future. We have been assured that
electronic filing is safe and secure for all taxpayers.
Transmissions are made over secure telephone lines, not over
the internet.
Commonly asked Electronic filing
Questions and
Answers
What do I gain by using IRS e-file?
Accuracy! Security! Electronic Signatures! Proof of
Acceptance! Fast refunds with direct deposit! Electronic
Payment Options! Federal/State e-file! Only IRS e-file offers
these advantages.
What is an Authorized IRS e-file
Provider? An Authorized IRS e-file Provider
is a tax professional or firm who is accepted into the IRS
electronic filing program. One type of Authorized IRS e-file
Provider is an Electronic Return Originator (ERO). An ERO is
a person or firm that taxpayers entrust with tax information
for the purpose of filing income tax returns electronically
to the IRS. Graves & Company, P.C. is an ERO.
What is the Personal Identification Number
(PIN)? The PIN allows you to personally sign your
electronic tax return using a five-digit number. The PIN
serves as your signature on your tax returns. Our firm will
have this form all filled out for you when you come to pick
up your returns or they are mailed to you. All you need
to do, is execute and return the form to our office.
The Federal 8879 is the only form required to file your
Federal and State return.
Do I really get my refund faster? With IRS
e-file you get it back in half the usual time. It's even
faster and safer if you have your refund deposited directly
to your bank account in as few as 10 days. ask you Authorized
IRS e-file Provider for the estimated date of deposit. For
more information about Direct Deposit, go to the Financial
Management Service (FMS) web site,
www.fins.treas.gov/eft/.
Should I wait until April 15th to file electronically if I
owe taxes? No. You can e-file your return as soon
as it is completed. Then send your payment in on or before
April 15th. Graves & Company, P.C. will give you a
payment voucher and addressed envelope to make sure it goes
to the correct IRS center.
Do I have a greater chance of getting audited by the IRS if I
use IRS e-file? . No. The chance of an audit of an
e-filed return is no greater than with a paper
return.
How do I know that the IRS really has my
return? The IRS notifies your Authorized IRS
e-file Provider within 48 hours of transmission that your
return information was received. If the IRS detects any
errors, it sends a message back to our firm indicating the
error. Our firm will correct the error and notify you to let
you know what the error was. We will then retransmit your
returns to the IRS.
Can my state tax return be e-filed with my Federal return at
the same time?
There are 37 states and the District of Columbia currently
participating in the IRS e-file program. Some of these states
have returns that can't be filed electronically unless it is
with the Federal return. Other states will be filed as
independent states - meaning that they can be filed without
the Federal return attached to it. The Michigan return needs
to be filed with the Federal return.
If my return is electronic, how do I sign
it? The most convenient way for you to sign
your electronic return is to use a Personal Identification
Number (PIN). It's completely paperless! Our firm has you
sign a document that shows that you agree with the numbers in
the return and is allowing us to e-file your return for you.
The signed forms stay at our firm for four years.
What if I owe and cannot pay the full balance due on my
taxes? The tax preparation software used by our
firm can allow you to make partial payments. In this case,
you can make a payment for less than the balance due amount
on your return. If you cannot pay in full by April 15th, you
can file Form 9465, Installment Agreement Request.
What happens if my return is filed electronically, I am
receiving a refund, and I owe taxes from previous
years? The amount owed on back taxes is automatically
deducted from your refund just as if you filed a paper
return.