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In this issue:
- Have you applied for your PTIN?
- Are you ready to e-file W2s and 1099s?
- California Sales Tax E-file
- Form Starter Kits
- Do your clients need to adjust their withholding?
- California 10% Overwithholding DE 4 Adjuster
Have you applied for your PTIN?
As you probably know, the IRS recently announced fundamental changes in how the agency will regulate the tax return preparation industry. Beginning January 1, use of Preparer Tax Identification Numbers (PTINs) on federal tax returns will be mandatory for all paid preparers.
The IRS has launched a major outreach effort to inform tax preparers of the new PTIN requirement and their need to register or renew their PTIN prior to preparing tax returns. All preparers, even those who already have PTINs, must register using the new PTIN sign-up system on IRS.gov.
Preparers will need to create an account, complete the PTIN application and pay a $64.25 fee before getting their PTINs. For more information or to apply for your PTIN, go to www.irs.gov/taxpros.
Are you ready to e-file W2s and 1099s?
If you will be using CFS Payroll System W2/1099 E-file Add-on to e-file W2s and/or 1099s, there are several requirements you should be aware of.
Before e-filing Forms W-2 for the first time via Social Security's Business Services Online, you must have:
- an EIN (file Form SS-4) and
- a User ID (call SSA at 1-800-772-6270)
Before e-filing Forms 1099 for the first time via the IRS FIRE System, you must have:
- an EIN (file Form SS-4) and
- a TCC number (file Form 4419)
Note: You must apply for the above at least 30 days before you plan to file. Passwords for both Social Security and IRS web sites must be changed at least every 90 days to keep them from expiring.
Forms SS-4 and 4419 are included in CFS Payroll System, as are links to the Social Security and IRS web sites. We have also posted Instructional Videos on our web site explaining the e-file process for W2s and 1099s.
If you don't have the W2/1099 E-file Add-on and are interested in purchasing it, click here.
California Sales Tax E-file
Good news for California customers: CFS just became the first vendor to be certified for the State Board of Equalization's Direct Transmit Program. Users of California Sales Tax Preparer will soon be able to transmit returns and payments directly to the BOE electronically and receive confirmation that the return and payment have been received.
We will be beta testing the system in the fourth quarter, and expect to include direct transmit e-file capability with the release of California Sales Tax Preparer 2011 in January.
Order California Sales Tax Preparer now, and you will receive both the 2010 and 2011 versions for just $109.
Click here to order, or for more information on the program.
Form Starter Kits
Form starter kits have been mailed to many of our W2/1099 customers. The starter kit contains a sampling of 1096 and 1099 copy A's, blank perforated stock and envelopes. The starter kit is free to customers who renewed their W2/1099 program by May 31st. For customers who did not renew early or who wish to order additional kits, they can be purchased for $39. If you need larger quantities of forms, please order here.
Do your clients need to adjust their withholding?
Due to reduced withholding, the Making Work Pay Credit provision of the American Recovery and Reinvestment Act may still cause taxpayers in certain situations to be underwithheld. In addition, last year California cut exemption credits for dependents and adjusted its state withholding tables to "borrow" an additional ten percent in withholding tax. (See California 10% Overwithholding DE 4 Adjuster, below.)
CFS W4 Calculator will accurately calculate the correct number of federal and California withholding allowances to ensure that your clients are not over- or underwithheld.
If you own CFS W4 Calculator, now is the time to use it; if you don't own it, now is the time to buy it. Order W4 Calculator now, and get both the 2010 and 2011 versions for just $89!
California 10% Overwithholding DE 4 Adjuster
Last year, California adjusted its withholding tables to "borrow" an additional ten percent from California taxpayers. We responded by developing the "California 10% Overwithholding DE 4 Adjuster," to enable our California customers to make the necessary adjustments to Form DE 4 to compensate for the 10% increase. The Adjuster was included in TaxTools and posted on our web site as a free online calculator, and both versions have been updated for the new tax year. You can access the online version from our home page or by clicking here.
By the wayŚ If you don't own TaxTools, now is an excellent time to buy it. Order TaxTools now, and get both the 2010 and 2011 versions for just $189!
CFS Customer Service
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