Please Note: You are viewing the non-styled version of SITE NAME. Either your browser does not support Cascading Style Sheets (CSS) or it is disabled. We suggest upgrading your browser to the latest version of your favorite Internet browser.
1. What is the electronic filing requirement for Ohio income tax preparers?
Paid tax preparers who filed more than 75 tax returns in either the 2008 or 2009 calendar years must, beginning on Jan. 1, 2010, use electronic filing technology to file state income tax returns. Acceptable methods of electronic filing include the IRS federal and state e-file program, Ohio I-File, or Ohio eForms.
This requirement does not apply to paid tax preparers who, during the previous calendar year, prepared 25 or fewer tax returns.
2. Why did Ohio decide to require tax preparers to file electronically?
The primary reason for the requrement is to control the costs associated with processing income tax returns. The Department of Taxation estimates that it saves more than $1 for each return filed electronically rather on pen and paper.
Electronic filing also offers several practical advantages to taxpayers and preparers. Returns submitted electronically are more accurate and allow for faster, more efficient processing procedures and quicker refunds. Electronic returns also facilitate more rapid comparisons between the federal, state and school district returns that minimize discrepancies.
3. What is the basis for this filing requirement?
The filing requirement, found in section 5747.082 of the Ohio Revised Code, was enacted by the 127th General Assembly through House Bill 562.
4. Do the 25- and 75-return thresholds associated with the electronic filing requirement refer to all returns filed during a given calendar year or just the returns that were filed electronically?
These tests refer to all returns filed by your company, whether it is an electronic or paper return.
5. When does the requirement begin?
The electronic filing for income tax preparers begins with returns filed on or after Jan. 1, 2010, for taxable year 2009 and subsequent years.
6. Who is exempt from filing electronically? To which documents does the requirement apply?
The requirement does not apply to the following:
7. Is there a way for the paid preparer to "opt out" of the Ohio electronic filing requirement?
Yes. The waiver form will be available on our Web site at Tax Forms. Waivers will be reviewed and approved or denied on a case by case basis.
8. What if my client(s) object to filing their tax return electronically?
The waiver will be completed and signed by the taxpayer explaining why they want to opt out of the e-file program. The paid preparer must provide copies of properly-completed taxpayer waiver forms to the Ohio Department of Taxation by Dec. 1 after the close of each tax year. The requests will be reviewed on a case by case basis. The taxpayer will have to complete and sign the waiver each year.
Signatures by the taxpayer are important so the preparer does not arbitrarily complete this form without taxpayer knowledge in an attempt to bypass the mandate.
9. May practitioners complete the waiver?
Yes, the paid preparer may complete a waiver for a taxpayer who requests to opt out of the federal/state e-file program. The waiver must be completed in its entirety and include the taxpayer(s) signature(s). The requests will be reviewed on a case by case basis. The preparer will have to complete the waiver each year.
10. What type of reasons will be accepted for the tax preparer waiver?
Preparers seeking to opt out of electronic filing must present strongly compelling reasons to justify the waiver of the requirement. Preparers filing tax returns with the state of Ohio should plan to comply with the electronic filing mandate, and not assume that their request to opt out will be granted.
The department's view is that there are very few reasons why a return cannot be submitted electronically. Preparers who intend to file state income tax returns for Ohio must comply with the electronic filing mandate.
11. Are there penalties if I do not file electronically?
A $50 penalty will be imposed for paper return filed, starting with return number 76. However, in an effort to give the preparer community enough time to troubleshoot any electronic filing problems, the department will not penalize any preparer the first year.
12. What happens if I don't pay the penalty for not filing electronically?
The state will issue an assessment for any payment owed to the state, but not paid. Payments that are not received during the assessment phase will be certified to the Attorney General’s office for collection.
13. What software do you recommend?
The department cannot recommend a particular software company. All approved software is tested before the beginning of the tax season and all such approved software meets the business and formatting requirements of an electronic return.
A complete list of approved software products appears on our Web site at software developers.
14. How do I select a software product?
Tax preparers should ask the following questions before selecting a software company:
15. As a preparer, do I have to submit any tests to the state of Ohio?
Currently, preparers do not have to submit any tests to the department before submitting returns electronically.
16. Do I have to register to file electronically in Ohio?
If you are registered to e-file with the IRS you are automatically registered with Ohio. We do not require a copy of the IRS acceptance letter or IRS form 8633. Our only requirement is that you use software that has been approved by Ohio.
17. Do I have to use the federal/state e-file program to file or can I use the I-File or eForms systems offered by the Department of Taxation?
You do not have to use the federal/state e-file program. Instead, you may use one of the Ohio Web-based alternatives such as I-File or eForms. However, preparers who use the Ohio Web-based alternatives may miss some of the consistency checks provided through the federal/state e-file program. The combined program allows federal and state taxing authorities to compare certain line items such as the federal adjusted gross income, number of exemptions, etc. These checks reduce errors.
18. What type of hardware/software do I need to file electronically?
The hardware that you need in order to file electronically is identified in the software you purchase. Different products require certain operating systems, memory capacity and modem connections.
19. Who do I contact if I have questions about the electronic filing program?
You may contact the Department of Taxation's electronic filing help desk at (614) 466-0197 for questions regarding the federal/state e-file program or any of Ohio’s electronic filing alternatives.
20. Who do I contact if I have questions about my software or acknowledgements?
Contact your software help desk for specific questions regarding your software or missing acknowledgements.
21. Where can I find more information about the Ohio electronic filing program?
Preparers may find the Practitioner Electronic Filing Booklet on the department’s Web site at software developers.
22. What are some of the common problems that can be experienced when filing electronically?
Some of the common challenges include:
