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In this issue:
- There's Still Time to Save!
- Please Check Your Customer Info
- Forms 5500-EZ and 5558
- Why CFS Doesn't Provide 941 E-Filing
There's Still Time to Save!
Don't worry if you missed the May 31st deadline for spring renewal discounts. If you renew your CFS software by August 31st, you will still receive:
- $5 off every program renewed early;
- 20% off the first-time purchase of additional software or network upgrades; and
- 15% off forms, envelopes, folders, and checks.
We'll be sending out summer renewal notices next month, but why wait? Renew online today!
Please Check Your Customer Info
Every time we do a mailing, we expect to have a good many envelopes returned to us because of outdated addresses. Often, this is the only way we find out that a customer has moved.
Please help us out by taking a moment to make sure your customer information is current. Log in to your MyCFS account and check your Customer Info. If any of the information needs to be updated, click on the "Change Firm Name/Address/Email" link under "Quick Links," and fill in the online form.
Forms 5500-EZ and 5558
Form 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan, and Form 5558, Application for Extension of Time to File Certain Employee Plan Returns, are the only forms in the 5500 series issued by the IRS and supported by CFS. Other forms in the 5500 series are part of the Department of Labor's EFAST2 system and must be filed electronically on the DOL website. (For more information, see the FAQ on the DOL website.)
Forms 5500-EZ and 5558 are included in TaxTools and Small Business Tools. For more information on these programs, or to order, click here for TaxTools, and here for Small Business Tools.
Why CFS Doesn't Provide 941 E-Filing
One of the most common requests we receive from customers is for 941 e-filing in CFS Payroll System. As we have often explained in our newsletter, CFS can only support e-filing when it is possible to upload a file directly to the taxing agency. This is not currently possible when e-filing Form 941. In fact, in order to e-file Form 941, it is currently necessary to first create an e-Services Account, then:
- Log in to e-Services and access the online application to become an IRS e-file provider;
- Select your e-file provider option — return preparers who want to e-file for a client should select Electronic Return Originator (ERO);
- Enter identification information for your firm, as well as services provided to taxpayers;
- Enter the name, home address, SSN, birth date and citizenship status for each principal and responsible official in your organization; and
- Enter current professional status and requested information if the principal or responsible official is an attorney, certified public accountant, enrolled agent, officer of a publicly owned corporation, or bonded bank official; or
- Call the IRS toll free at 866-255-0654 to request a fingerprint card for any principal or responsible official who is not an attorney, certified public accountant, enrolled agent, officer of a publicly owned corporation, or bonded bank; and
- Get fingerprinted by a trained professional at your local police station or at a company that provides this service; then
- Mail the signed and completed card to the IRS.
After that, it is necessary to pass a suitability check, which "may include: a credit check; a tax compliance check; a criminal background check; and a check for prior non-compliance with IRS e-file requirements."
Credit checks? Criminal background checks? Fingerprints? Small wonder an annual report by the Electronic Tax Administration Advisory stated that, "when taxpayers performed a cost benefit analysis of transitioning to E-Filing from paper filing, they discovered little incentive to make the change.... The current paper process is quick, easy, and extremely low cost for taxpayers to maintain. Transitioning to e-file requires an extensive enrollment processes with the IRS, requires software considerations, and entails compliance risks. Without providing some benefit for taxpayers to transition to e-file, taxpayers are unlikely to convert..."
Until the IRS changes their system, the real question is, why would anyone want to e-file Form 941?
CFS Customer Service
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