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In this issue:
The ABC's of e-filing...
To begin with, there are two methods of e-filing forms—web-based and file-upload. With web-based e-filing, the user must manually log in to a government website and fill out the necessary information on a succession of screens. When finished, the user hits a "submit" button, and the form is filed. With web-based e-filing, our software can indirectly aid the user by compiling data and providing software-generated reports containing the information to be manually entered online.
With the file-upload method of e-filing, the user creates a file from within a software program, and the file is uploaded to a government website. Usually, the software user/preparer directly submits the file to the government. However, sometimes the file-upload method requires the software company to act as an intermediary or third-party provider; the user sends the file to the software company, and the software company forwards the file to the government. With the file-upload method of e-filing, it may be possible for our software to create the file to be uploaded. However, if the software company is required to submit the file, CFS is not equipped to act as a third-party provider.
When a third-party provider is required, the burden of successfully filing the form lies with the software company, and they must charge a service fee to cover their costs. Tax preparers are accustomed to the ease in which Form 1040 is e-filed with this method. Because so many 1040's are e-filed and the system has been in place for so long, this third-party file-upload method is relatively inexpensive and virtually trouble-free. However, other third-party filing systems—Form 941, for example—are more expensive, and our surveys have determined that CFS customers would not be willing to pay the service fee required.
The bottom line is, we can only offer e-file for forms where the file-upload method is available and no third-party provider is required.
CFS Payroll System currently supports payroll form e-filing for a number of states that use the file-upload method with no third-party provider requirement. We will offer e-filing for additional state forms—and for Form 941—if and when it is possible to submit those forms using the file-upload method with no third-party provider requirement.
As soon as the California State Board of Equalization permits the file-upload method, CFS also plans to develop the necessary program code to provide e-filing for California Sales Tax Preparer.
Payroll System now includes e-file for New Jersey.
Before using CFS Payroll System to e-file these forms, users must obtain an authorization number from the state and make sure their clients are set up to make payments electronically. For more information, see the posting in our Community Forums, here.
Also by May 31st, be sure to:
The easiest way to renew your CFS products is by using your MyCFS account to renew online. Your MyCFS account gives you secure access to your customer information, as well as allowing you to shop securely at our online store. You can view your order history, see if you have vouchers available, and view and fill out your renewal order form online.
To log in to your MyCFS account and access your renewal information, click here. If you don't have a MyCFS account, it's easy to register. Just go to TaxTools.com and click on "Create Account" under the MyCFS menu, or click here. You will need to provide a valid e-mail address and a password.
NOTE: If you renew online, you do not need to return the paper renewal form.
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