Note: ProSeries and Lacerte tax software from Intuit offer support for each of the mandates listed except where specifically noted.
State Mandates Federal MandatesState Mandates
States continue to issue mandatory requirements for electronic filing of tax returns. If you prepare returns in any of the states listed below, you should be aware of the state's e-file requirements before preparing your client's tax returns.
To learn more about the requirements, click on the state name below to go to that state's e-file Web site.
Alabama- AL Individual: Tax preparers who prepared 250 or more Alabama individual income tax returns for the taxable year that began on January 1, 2004 ; prepare 100 or more returns using tax preparation software for the taxable year that begins on January 1, 2005; and those who prepare more than 50 returns for the taxable year that begins on January 1, 2006, will be required to E-File all of their current year individual returns.
California
- CA Individual: California law requires tax practitioners who prepare more than 100 California individual income tax returns annually and prepare one or more using tax preparation software to e-file all personal income tax returns.
Connecticut
- CT Individual: Effective January 1, 2006 preparers who prepared 200 or more Connecticut income tax returns, will be required to electronically file all eligible Connecticut income tax returns using the Federal/State Electronic Filing program. For more information on Connecticut e-filing requirements, go to the State of Connecticut Department of Revenue Services Web site.
Massachusetts
- MA Business Tax Returns and Corporate Extensions: Paid preparers must, under certain conditions, electronically file all Corporate, S Corp and Partnership returns and corporate extensions. For more information on e-filing requirements go to the MA Department of Revenue Web site.
- MA Individual Extensions: The state of Massachusetts requires personal income tax extensions with zero payment or with payments of $5,000 or more to be filed (and paid, if applicable) electronically.
Michigan
- MI SBT: Paid preparers must electronically file all Single Business Tax (SBT) forms.
- MI Individual: Tax preparation businesses who prepare 200 or more MI Individual returns must e-file all MI Individual returns prepared at all of their business locations.
Minnesota
- MN Individual: Paid preparers who prepare 100+ individual MN returns must e-file all individual returns. Returns that would otherwise meet the requirements of the mandate are subject to a penalty if paper filed.
New Jersey
- NJ Individual: Paid preparers who filed 200 or more NJ Resident Income Tax Returns must use one of New Jersey's three electronic filing services to electronically file all NJ Resident Income Tax Returns for their clients.
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NJ Partnership: New Jersey partnership returns with 10 or more partners must be filed electronically.
NOTE: Lacerte tax software supports NJ Partnership e-file, ProSeries tax software does not.
New York
- NY Individual (returns and extensions): For calendar year 2007, the e-file mandate will apply to individual personal income tax returns and extensions.
You must e-file beginning on January 1, 2007, if you are a return preparer who:- Prepared more than 100 New York State original tax returns for tax year 2005 in calendar year 2006, and
- Uses tax preparation software to prepare one or more New York State authorized personal income tax returns for tax year 2006 in calendar year 2007, or
- Was subject to the mandate during calendar year 2006.
Once you are subject to the e-file mandate, you must continue to e-file all of your clients' authorized personal income tax returns and extensions in all future years regardless of the number of returns and extensions filed.
Form IT-800, Opt-Out Record for Tax Practitioners, can be used if a client does not want to e-file, or if you have other reasonable cause not to e-file a return.
For more information on New York e-filing requirements, go to the New York State Department of Finance and Taxation Web site.
Oklahoma
- OK Individual: Any tax return preparer, who prepared more than 50 Oklahoma income tax returns for the prior year, must file all Oklahoma income tax returns prepared for the current tax year electronically. This section will not apply to a return upon which the taxpayer has indicated that the taxpayer did not want the return filed by electronic means.
Utah
- UT Individual: Beginning with the Tax Year 2005 return filing period, if a preparer or multiple preparers affiliated together in the same establishment, prepared 101 or more returns in the prior calendar year, they must submit all Utah Individual tax returns electronically or using 2-D bar code technology. Exceptions apply for taxpayers who elect to opt-out of electronic filing or using 2-D technology, and for undue hardship on the preparer in conforming to this mandate. For more information on Utah e-filing requirements go to the Utah State Web site.
Important Note: ProSeries and Lacerte tax software for Tax Year 2006 will support both electronic filing and 2-D bar code technology for Utah Individual returns.
Virginia
- VA Individual: If you prepare 200 or more Virginia individual income tax returns, you must file all acceptable Virginia individual income tax returns, via electronic filing or software that produces 2D barcodes in accordance with Virginia specifications. Lacerte and ProSeries tax software provide support for both electronic filing and 2D barcode for Virginia Individual returns.
West Virginia
- New for TY06 WV Individual: For tax year 2006, West Virginia will require preparers who prepared 100 or more 2005 West Virginia income tax returns to file all 2006 West Virginia personal income tax returns electronically using the Federal/State Electronic Filing Program.
Wisconsin
- WI Individual: Paid preparers who prepared 100 or more WI Individual returns must e-file all WI Individual returns.
- Updated for TY06 Federal 1120/1120S Returns and Extensions: Corporations with total assets of $10 million or more ($50 million in 2005) and filing at least 250 returns (including income tax, excise tax, employment tax, and information returns) during a calendar year are required to electronically file their 1120/1120S income tax returns for tax years ending on or after December 31, 2005. Example: If a corporation has 245 employees, it must file Form 1120 or Form 1120S electronically, because each Form W-2 and quarterly Form 941 is considered a separate return; therefore, the Corporation files a total of 250 returns (245 W-2's, four 941's, and one 1120/1120S).
For more information on corporate electronic filing go to the IRS Web site e-file for Large and Mid-Size Corporations.
ProSeries and Lacerte tax software will support corporate and corporate extension e-file for Tax Year 2006.
- Updated for TY06 Federal 990 Returns and Extensions: Certain tax-exempt organizations with total assets of $10 million or more ($100 million in 2005) and filing at least 250 returns (including income tax, excise tax, employment tax, and information returns) during a calendar year are required to electronically file their 2005 annual exempt organization tax year returns due in 2006. Example: If an organization has 245 employees, it must file Form 990 or Form 990-PF electronically, because each Form W-2 and quarterly Form 941 is considered a separate return; therefore, the organization files a total of 250 returns (245 W-2's, four 941's, and one 990/990-PF).
For more information on tax-exempt electronic filing go to the IRS Web site e-file for Charities and Non-Profits.
Lacerte tax software will support exempt organization and exempt organization extension e-file for Tax Year 2006, ProSeries tax software will not.
- Federal 1065 Returns and Extensions: Section 1224 of the Taxpayer Relief Act of 1997 requires partnerships with more than 100 partners (Schedules K-1) to file their return electronically for taxable years ending on or after December 31, 2000.
ProSeries and Lacerte tax software will support Partnership return and extension e-file for Tax Year 2006.