Authorized e-File Provider

Before a tax preparer begins the online e-File application, he or she must have an IRS e-Services account. e-Services is a suite of web-based products that will allow tax professionals and payers to conduct business with the IRS electronically. These services are only available to approved IRS business partners and not available to the general public. All tax professionals who wish to use e-Services products must register online to create an individual electronic account. The registration process is a one-time automated process where the user selects a username, password and PIN. When the registration information has been validated, the registrant will receive an on-screen acknowledgment. When a tax preparer applies for an e-Services account, he or she will need to complete all of the following:

1. Provide his or her legal name, Social Security Number (SSN), with date, phone number, e-mail address and home mailing address (confirmation of the account will be mailed);
2. Provide his or her Adjusted Gross Income (AGI) from the current or prior tax year;
3. Create a username, a password and a PIN, and provide an answer to a reminder question for his or her username;
4. Make sure that every principal and responsible official in his or her firm signs up for e-Services;
5. Return to e-Services to confirm his or her registration within 28 days of receiving the confirmation code in the mail.

The verification and approval process for creating an account with IRS e-Services can take several days.

The tax preparer's firm can start the application to become an Authorized IRS e-File Provider once all principals are approved for e-Services. The application process is not simple. However, the complexity is necessary to protect the integrity and security of the electronic filing system.
The e-File application process is comprehensive, designed to allow you to save your data during the session and to return to the application when convenient. Plan accordingly since the IRS may take up to 45 days to approve an Authorized IRS e-File provider application. 
After the tax prepare submits the application and related documents the IRS will conduct a suitability check on the firm and each person listed on the application as either a principal or responsible official. This 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. Once approved, the tax preparer will get an acceptance letter from the IRS with his or her Electronic Filing Identification Number (EFIN).

Tax Return Preparers Must Use IRS e-File - Form 8944

Starting January 1, 2012, any tax return preparer who anticipates preparing and filing  11 or more Forms 1040, 1040A, 1040EZ and 1041 during a calendar year must use IRS e-File (unless the preparer or a particular return is administratively exempt from the e-File requirement or the return is filed by a preparer with an approved hardship waiver).
Members of firms must count returns in the aggregate. If the number of applicable income tax returns is 11 or more, then all members of the firm generally must e-File the returns they prepare and file. This is true even if a member expects to prepare and file fewer than 11 returns on an individual basis.
Specified tax return preparers may request an undue hardship waiver from the e-File requirement using Form 8944 - Preparer e-File Hardship Waiver Request. Form 8944 generally must be submitted to the IRS no later than February 15 of the year for which a waiver is being requested.

Types of Taxes in The United States - Employment Taxes

Employment taxes are Federal income tax withholding, Social Security tax, Medicare tax, and Federal Unemployment tax that an employer must submit on behalf of employees. Under the Federal Insurance Contributions Act (FICA) 12.4% of earned income up to an annual limit must be paid into Social Security, and an additional 2.9% must be paid into Medicare. If the taxpayer is a wage or salaried employee, he or she pays only half the FICA bill, and the tax is automatically withheld. The employees and the employer's FICA tax rate for 2014 consists of the Social Security tax rate of 6.2% of each employee's first $117,000 of wages, salaries, etc. and the Medicare tax of 1.45% of each employee's total wages, salaries, etc. In other words, the FICA tax rate for 2014 is 7.65% of each employee's first $117,000 of wages, salaries, etc. and then 1.45% of each employee's wages, salaries, etc. that are above $117,000.
In addition to withholding Medicare tax at 1.45%, an employer must withhold a 0.9% Additional Medicare tax from wages he or she pays to an employee in excess of $200,000 in a calendar year. The employer is required to begin withholding Additional Medicare tax in the pay period in which he or she pays wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year.
Additional Medicare tax is only imposed on the employee. There is no employer share of Additional Medicare tax.
The Federal Unemployment Tax Act (FUTA) with state unemployment system, provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both a Federal and a state unemployment tax. Only the employer pays FUTA tax; It is not deducted from the employee's wages.
Old-age, survivors, and disability insurance benefits (OASDI) payments under section 202 of title II of the social security act are not includible in the gross income of the individuals to whom they are paid. This applies to old-age insurance benefits, and insurance benefits for wives, husbands, children, widows, widowers, mothers and fathers, and parents, as well as the lump-sum death payment.

Types of Taxes in The United States - Self-Employment Tax

Self-employment tax is a tax consisting of social security and Medicare taxes primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. An individual figures self-employment tax (SE Tax) using Schedule SE (Form 1040). Social Security and Medicare taxes of most wage earners are figured by their employers. Also the taxpayer can deduct the employer equivalent portion of the SE Tax in figuring adjusted gross income. Wage earners cannot deduct Social Security and Medicare taxes.
For self-employment income earned in 2014, the self-employment tax rate is 15.3%. The rate consists  of two parts: 12.4% for Social Security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance).

Types of Taxes in The United States - Sin Tax

A Sin Tax is a state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. These types of taxes are levied by governments to discourage individuals from partaking in such activities without making the use of the products illegal. These taxes also provide a source of government revenue.
Revenue generated by sin taxes supports many projects imperative in accomplishing social and economic goals.

Types of Taxes in The United States - Excise Taxes

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product. There are also excise taxes on activities, such as on wagering or on highway usage by trucks. Excise tax has several general excise tax programs. One of the major components of the excise program is motor fuel. Excise taxes are usually paid initially by the manufacturer or retailer.

Types of Taxes in The United States - Property Tax

Property Tax is a capital tax on property imposed by municipalities; based on the estimated value of the property. Deductible real estate taxes are generally any state, local, or foreign taxes on real property. They must be charged uniformly against all property in the jurisdiction at a like rate. Many states and counties also impose local benefit taxes for improvements for streets, sidewalks, and sewer lines. These taxes cannot be deducted. However, a taxpayer can increase the cost basis of the property by the amount of the assessment. Local benefits taxes are deductible if they are for maintenance or repair, or interest charges related to those benefits. 
Deductible personal property taxes are those based only on the value of personal property such as a boat or car. The tax must be charged to the taxpayer on a yearly basis, even if it is collected more than once a year or less than once a year.