3.42.20. Preparer e-file Hardship Waiver Requests

Bankruptcy

Bankruptcy court documents

Economic

1. Two written cost estimates showing the amount a third party will charge the preparer to purchase a computer, software, or software upgrades, or for programming an existing system to produce electronic returns.

2. The estimated net income or average return preparation fee information.

3. An explanation of how the estimated additional costs would cause an economic hardship.

Presidential Disaster Area

Name and location of the disaster, and its impact on the preparer's ability to electronically file.

Other

Any documentation available to prove the hardship described on Form 8944, Line 9, and the hardship's impact on the preparer's ability to electronically file.

CLEAR button

This button MUST be used to clear the screen before adding a new record.

1

Calendar Year should be the current year that the returns will be submitted.

Calendar Year/Not Current Year drop-down list.

Database will default to current calendar year when adding a record. If other than a current calendar year select "Not Current Year".

1

Type of Submission - Original or Reconsideration.

Submission Type/Original/Reconsideration drop-down list.

Select Original or Reconsideration.

2

Preparer’s Name and Address

Preparer’s Name fill in field. Address Line 1 & 2 fill in fields. City fill in field. State drop-down list. Zip Code fill in field.

Enter preparer's Name, City, State using drop-down list and Zip Code.

3

Preparer Tax Identification Number (PTIN) consists of the letter P and 8 digits.

PTIN fill in field

This field is used to SEARCH the database by PTIN and to ADD a new entry to the database.

4

Telephone Number

Phone Number/Ext fill in field.

Enter the 10 digit Phone Number and Extension if present.

5

Aggregate Firm Information - Consists of 3 pieces: YES or NO to Aggregate status, Firm Name and Firm EIN

Firm Name fill in field.

If YES is checked enter Firm Name and there must be an entry on line 6(iv). If NO is checked continue to next line.

Firm EIN fill in field - do not use spaces or dashes in this field

If YES is checked, enter Firm EIN and there must be an entry on line 6(iv). If NO is checked continue to next line.

6a

Form Type 1040, 1040NR for which the waiver is requested.

Form 1040, Form1040NR check box

On Form 8944, both lines 6a and 6b can be checked. Check the appropriate PWR field(s).

6b

Form Type 1041 for which the waiver is requested.

Form 1041 check box

On Form 8944, both lines 6a and 6b can be checked. Check the appropriate PWR field(s).

6(i)

Number of returns filed in the prior calendar year.

Amt A fill in field

Form 1040, Form1040NR and Form 1041 have a corresponding column Amt A. Enter the data as it appears on the Form 8944.

6(ii)

Number of returns they reasonably expect to file in the current calendar year.

Amt B fill in field.

Form 1040, Form1040NR and Form 1041 have a corresponding column Amt B. Enter the data as it appears on the Form 8944.

6(iii)

YES or NO that indicates whether or not they will be using professional tax software to file returns in the current calendar year.

Computer SW radio button

This is a YES/NO field that defaults to YES. If the Form 8944 indicates that they will not use tax software to prepare returns in the current calendar year, change the default to NO.

7

Hardship Type

• Bankruptcy

• Economic

• Presidential Disaster Area

• Other

Reason For Hardship (drop-down list)

• Economic

• Presidential Disaster Area

• Bankruptcy

• Other

• Refused to Comply

• Admin Exemption

• Prior Year

Select the appropriate hardship type based on the selection made on the Form 8944.

Economic Cost estimates must be attached and entered along with Net Income ("See Cost Estimates" below), and they must have a statement on line 9 explaining how the hardship will affect their ability to electronically file this calendar year.

Presidential Disaster - Use SERP to verify the Presidential Disaster Area. In the PWR comment field enter disaster area information.

Bankruptcy - Documentation supporting claim must be attached.

Other - Documentation must be indicated in Line 9 on the Form 8944 to explain how the hardship will prevent them from filing electronically in the current calendar year. Enter detailed comments in the PWR comment field.

Refused to Comply - Is identified by statements made on Form 8944 that state the applicant will not comply with the e-file requirement. In the PWR comment field enter, "Refused to Comply without justification".

Administrative Exemption - Enter in PWR comment field the type of administrative exemption claimed.

Prior Year - Select Prior Year when PWR research shows that a waiver was filed in the prior year for the exact same hardship, and without any additional information that supports a continued hardship.

8

Economic Hardship Required Information - Consists of 3 pieces:

Economic Hardship: Estimates Attached drop-down list that defaults to zero.

In this field, select the number of cost estimates attached to the Form 8944. Selection consists of 0, 1 or 2. Correct entry in this field determines whether or not all documentation has been attached.

8

Net Income

Net Income

Enter the net income amount - this field will accept a negative number.

8

Cost Estimate 1

Third Party Cost 1 fill in field

Enter the first cost estimate amount.

8

Cost Estimate 2

Third Party Costs 2 fill in field

Enter the second cost estimate amount.

9

This is a statement from the applicant explaining how the hardship type Economic, Presidential Disaster Area, or Other affect their ability to e-file in the current calendar year.

Documentation Included check box that defaults to unchecked.

If the documentation for Form 8944 is or is not attached and/or the explanation in box 9 does not clearly explain why the hardship will prevent them from electronic filing, do not check the box.

Signature of Applicant

Waiver must have a signature.

Signature Present check box that defaults to checked.

Uncheck the box if the signature is not present on Form 8944.

Envelope

Use the Postmark Date from the envelope.

Postmark date is selected using the calendar icon next to the field.

Enter the postmark date from the envelope. A FAX or IRS Received Date may also be used if the postmark date is not present.

Comments fillable field is a maximum of 300 characters.

The PWR Database comment field has been referenced throughout this table. In addition to the uses mentioned previously it can also be used to update if new information is received that does not alter the record. The new information is entered into this field. Then click the UPDATE COMMENTS ONLY button located below this field to save the changes to the comments only.

Interim Letter check box

This will only be used when manager deems it necessary due to internal processing issues that will prevent the timely processing of the waiver request(s). When instructed to use this feature check the box and select Update. You will receive a pop up box letting you know the record has been updated.

Letter Sent systemically generated date field.

This field will automatically populate with the date the letter was printed.

Date Entered systemically generated date field

This date will automatically generate when the record is entered and saved in the database. This field cannot be altered.

Last Updated By systemically generated alpha numeric field

This field will automatically populate with the Standard Employee Identifier (SEID) of the person who last updated the record.

Process Date systemically generated date field

This field will automatically update with the date the record was last updated.

Grand Total systemically generated total field

This field will automatically populate the total number of returns the applicant states they expect to file in the current calender year. Source is the data entered in Column B.

Records Not Verified button is only available in computer specialist role

When this button is selected a list of waivers awaiting verification will appear. At this point the reviewer will have the option to select and review individual records or they can select "Verify All". This will move all records to "Letters for Preparers" making them ready to view and print.

Record Verified check box is only available in computer specialist role.