Preparing for E-Filing: Dealing with the Operational Pitfalls and Concerns

For the 2005 tax year, mandatory e-filing of returns only applies to the largest corporations and non-profit organizations. But the number of businesses and non-profits that must file electronically will grown exponentially for the 2006 tax year, and many of those taxpayers are not equipped to make this switch, according to Michael P. Dolan, the national director of IRS policies and dispute resolutions at KPMG LLP-Washington Tax. In a recent issue of CCH’s Journal of Tax Practice and Procedure, Mr. Dolan outlines the new requirements and what will be necessary to prepare to meet those requirements for businesses and non-profits that will be subject to the new e-filing rules. The thresholds are dropping pretty low, he notes. Business with assets of $10 million will be subject to the new requirements for the 2006 tax year-a big change from the threshold of $50 million. Practitioners and taxpayers need to prepare for this change and start the process of getting the necessary infrastructure in place.

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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products.

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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