Creating and submitting e-files in TaxWise is an essential process for electronically filing tax returns with the IRS. Here's a step-by-step guide on how to create and submit e-files in TaxWise:
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Steps to Create and Submit E-files in TaxWise
1. Prepare the Tax Return
Log into TaxWise and create or open the tax return that you want to e-file.
Enter all necessary taxpayer information (name, address, Social Security Number, income, deductions, etc.), and ensure all relevant forms are completed.
Review the return: Double-check for any missing information or errors. Ensure the return is accurate and complete before proceeding to e-file.
2. Complete the E-filing Authorization (Form 8879)
The taxpayer must sign an e-file authorization form (IRS Form 8879, IRS e-file Signature Authorization). This form confirms that the taxpayer authorizes you to submit their return electronically.
Obtain the signature: The taxpayer can sign Form 8879 physically or electronically, depending on your office's e-signature setup.
Enter signature details: If using electronic signature, follow the steps in your TaxWise software to capture and store the signature.
3. Verify ERO Information
Ensure that your ERO (Electronic Return Originator) information is correctly entered in the return. The ERO details, such as your EFIN (Electronic Filing Identification Number), must be included for e-filing to proceed.
Confirm that the TaxWise E-file Settings are configured properly, including your ERO’s IRS e-file provider number.
4. Create the E-file
Once the return is complete and all forms are signed, check Diagnostics first to verify that there are no errors or lacking information in your return to E-file.
Once Diagnostics are clear, click the Create E-file button.
A Print Return button will be shown to your screen then select the print set that you wish to print.
After doing so, a new pop up will be shown to your screen saying that the pdf of the return is being created - just click OK.
After a few moments of clicking OK, a new notification will be shown that the PDF copy is already available to be downloaded.
Return to this prompt and click create e-file again.
Click Create. After doing so, you have successfully created the e-file! Do not forget to Save and Close the return.
6. Transmit the E-file
Once the e-file is created, go back to the main menu and choose e-filing.
Click on the "Submit e-files" button.
NOTE: State and Federal e-files must be submitted separately, but the process is same for the both. You can also submit multiple e-files at once by clicking the checkbox.
Lastly, click Continue to submit the e-file(s)!
TaxWise will establish a connection with the IRS e-file system and submit the return electronically.
7. Review E-file Status
After submitting the e-file, you can monitor the status of the return by going to the E-file Status section in TaxWise.
The system will notify you if the return was accepted or rejected by the IRS.
If accepted, the return will be successfully filed with the IRS, and you’ll receive a confirmation notification.
If rejected, TaxWise will provide an error code and description. You'll need to resolve the issue (e.g., incorrect taxpayer information) and resubmit the e-file.
8. Track Submission and Confirmation
IRS Acknowledgement: After successful submission, the IRS will send an acknowledgment confirming the submission of the return. This is typically received within 24-48 hours. TaxWise will store the IRS acknowledgment for your records.
Print or Save the Acknowledgement: For future reference or audit purposes, save or print the IRS acknowledgment for the e-filed return.
9. Follow Up on E-file Rejections
If the e-file is rejected, review the rejection code or message provided by TaxWise.
Common rejection reasons can include issues with:
Incorrect taxpayer identification numbers (Social Security Number or Employer Identification Number).
Missing forms or incorrect forms (like a missing signature or missing schedules).
IRS system issues (e.g., temporary outages).
Correct the errors in the return, save the updated version, and then re-submit the e-file.
10. Keep Records of E-filed Returns
Once the e-file is successfully accepted, keep a copy of the filed return, IRS acknowledgment, and Form 8879 (signature authorization) for your records.
Store e-file records securely as required by IRS regulations (at least 3 years for e-filed returns).
Troubleshooting Common E-file Issues in TaxWise
Here are some common issues you may encounter when e-filing with TaxWise and how to address them:
Error in Taxpayer Identification Number (TIN)
Verify that the Social Security Number (SSN) or Employer Identification Number (EIN) is entered correctly. The IRS will reject a return if there are discrepancies in these numbers.
Missing Signature (Form 8879)
Make sure that Form 8879 has been signed by the taxpayer. If it’s missing or incomplete, the e-file will be rejected.
Rejected due to Incorrect Income Information
Ensure that the income, deductions, and credits match the information provided to the IRS and that all relevant forms are correctly entered.
Software Update Required
Sometimes, TaxWise software needs to be updated to reflect changes in IRS filing rules or form updates. Ensure your TaxWise version is up to date before submitting e-files.
IRS System Downtime
If the IRS is experiencing system issues, e-filing might be temporarily unavailable. Check IRS alerts or try submitting the return again later.
Best Practices for E-filing in TaxWise:
Check the IRS e-file status regularly to ensure smooth processing of returns.
File returns early to avoid last-minute issues or delays.
Backup your records regularly to prevent data loss.
Stay updated on IRS filing deadlines and ensure that all forms are correctly filled out before e-filing.
By following these steps and troubleshooting tips, you can successfully create and submit e-files in TaxWise, ensuring your returns are filed accurately and efficiently.