TAX Issues e-Alert on Corporate e-Filing Waiver Requests

The Virginia Department of Taxation (TAX) has issued an e-alert providing instructions on how tax preparers should submit a waiver request for the corporate electronic filing requirement. Use it as is or reformat for your purposes. Questions should be directed to Nancy Wilson.

e-Alert to Tax Preparers – 11/6/12
Subject:  Virginia’s Corporate Electronic Filing Requirement – Submission of Waiver Requests by Tax Preparers
The Virginia Department of Taxation would like to clarify how Tax Preparers should submit the Corporate Income Tax Electronic Filing Waiver Request on behalf of their clients.    

• Complete a single Corporate Income Tax Electronic Filing Waiver Request Form.
• Attach a list of the Corporations for which you prepare tax returns and/or submit payments and include the following information for each corporation.
• Corporation Name
• Corporation FEIN
• Indicate whether you have a Power of Attorney for each client
• Fax the Waiver Request and list to 804-367-3015
• The Department will issue a single waiver to the tax preparer covering all their clients.

Listed below are some valid reasons that a Tax Professional would request a waiver.

• The Tax Preparer’s software does not support electronic filing
• The cost to purchase software supporting e-File would be a cost burden on the firm.   
• The fact that the IRS does not support a specific federal form or schedule through their e-File program is not a valid reason for a waiver on its own merit.  Since Virginia’s e-File program supports PDF attachments, the federal return or form can be attached as a PDF and filed as an “unlinked” return to Virginia.  Please check with your software company as to whether they support both linked and unlinked returns.
• If you do not have a scanner or other means to produce a PDF, then request a waiver.
• If your software does not support unlinked filing of returns to the state, then request a waiver.