Changes For Business e-File

Practitioners need to be ready to answer questions designed to authenticate the e-file for entity tax returns (such as Forms 1120S and 1065).

Beginning with returns for the 2016 tax year, practitioners must now enter the Social Security number of the officer who signs the e-file authorization form.  Practitioners must also enter information about the entity’s total income from the entity’s 2015 return.  While tax software should carry this information over from the prior year, practitioners should verify the information.  The income amount to be used from the 2015 tax return should be discussed in the help section of the software.  Intuit has indicated that the income from the 2015 tax return should be taken from the following lines: Form 1120, line 11; Form 1120S, line 6; Form 1065, line 8; Form 1041, line 9.

As part of the authentication process, practitioners must also enter the number of officers with compensation, the number of Forms W2 issued for employees, and they must check boxes indicating the types of other tax returns it files (such as Forms 940 and 941, if applicable).  Intuit has indicted that this information should be taken from an entity’s payroll and related returns for the 2016 tax year.

All of these procedures are designed to thwart the filing of tax returns by identity thieves.