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.
The taxpayer can file one Form 3115 if he or she chooses to request to change to the cash method and to change to account for inventoriable items as non-incidental materials and supplies. Two procedures exist under which an applicant may request a change in method of accounting:
- AUTOMATIC CHANGE REQUEST PROCEDURES. Unless otherwise provided in published guidance, you must file under the automatic change request procedure if:
- the change in method of accounting is included in those procedures for the requested year of change, and;
- you are within the scope of those procedures for the requested year of change/
- ADVANCE CONSENT REQUEST PROCEDURES. If you are not within the scope of any automatic change request procedures for the requested year of change, you are requesting is not included in those procedures for the requested year of change, you may be able to file under the advance consent request procedures.
For more information about form 3115 visit: Form 3115
