FEDERAL / STATE ELECTRONIC TAX FILING - (2004) E-File
|
What is E-File? |
| E-File stands for the Federal/State Electronic Filing Program, a joint program between the Internal Revenue Service ("IRS") and the Delaware Division of Revenue ("DDOR") to provide electronic filing capability of both Federal and State income tax returns in a one-transmission fashion. In essence, the Federal and State returns are "packaged" together and transmitted to the IRS. The State return is stripped from the Federal return by the IRS and forwarded to the State for prompt processing. Both the IRS and the DDOR reply back to the Electronic Filer with an acknowledgment that the returns (Federal and State) have been received accepted. Some exciting features of this program are: |
| Single data entry. Since both Federal and State returns are
packaged together, most information needs to be entered only once to file both
returns. |
| Proof of
return receipt and acceptance by both the IRS and the DDOR. Acknowledgements
are sent back to the Electronic Filer indicating receipt (a substantial
savings over the cost of a registered letter.) |
| Immediate
review of returns for correctness of information. Each is
reviewed upon arrival at the IRS for obviously incorrect data (such as
incorrect SSNs or mis-matching dollar amounts.) |
| Convenience
by providing taxpayers a one-stop opportunity to file both Federal and
State returns. |
| Quick
processing of Federal and State returns meaning refund checks will be
back in the hands of taxpayers in record time! |
|
Who Can
Participate? |
| There are
three classifications of participants in the electronic filing
program: Electronic Return Originators (ERO), Transmitters, and Software
Developers. |
| Preparers
and Software companies need not apply to process. If you have been approved by
the IRS and have received an EFIN from them, you will be able to electronically
file with the State of Delaware. If you become disengaged with the IRS E-File
Program, your filing privileges with the State of Delaware will reflect
the same status. |
| Electronic
Return Originators (ERO) gather forms from taxpayers and prepare them for
electronic transmission using tax preparation software that has been approved by
the Division. They may be paid preparers who will fill out the returns for
the taxpayers or they may simply be drop-off points for the collection of
completed returns which will be processed electronically. |
|
Transmitters
actually transmit electronic returns directly to the IRS Service Center, again
using software approved by the Division. A company may be both an
ERO and a transmitter to use their computer services. |
| Software
Developers create and/or produce the tax preparation and transmission software
which formats the electronic returns and allows the data to be transmitted via
computers. Software developers must complete rigorous testing with the IRS
and the DDOR before their software will be approved for use in creating and/or
transmitting Delaware tax returns electronically.
|
|
The
Application/Acceptance Process |
| To apply for
the federal program you must complete IRS Form 8633, "Application to
Participate in the Electronic Filing Program", which is available from the
IRS. Federal Publication 1345 specifies the application progress and
requirements for federal participation. |
| The Division
reserves the right to deny participation in the program if a company is not
registered to do business in the state or has any outstanding tax liabilities
with the state. Software Developers, EROs and Transmitters do not
have to reapply each year unless federal requirements (as listed in IRS
Publication 1345) change or they have been suspended from the program.
Software Developers DO have to retest each year. |
|
What Can Be
Electronically Transmitted? |
| The following are the
only Delaware state tax forms which can be electronically transmitted: |
| Form 200-01 Individual Resident Income Tax Return. |
| Form 200-02 NR, Individual Non-Resident Income Tax Return. |
| Form 200-03 EZ Individual Resident Income Tax Return (EZ). |
| For tax year
2003,
Delaware will be accepting the following type of income tax returns.
General rules concerning which taxpayers may file electronically are as follows: |
| 1.
Residents and
Non-Resents of the State of Delaware may file their Delaware returns
electronically.
|
| 2.
Refund, Direct Deposit,
Zero-Balance Due and Balance Due returns will be accepted. Balance Due
returns must mail their payment prior to the last day to file, but need not
remit payment at the time of electronic filing. |
|
What Cannot Be
Electronically Transmitted? |
| In addition to the type
of forms which are excluded, the following types of returns cannot be
electronically transmitted. |
| Non-Calendar Year Filers. |
| Prior Year Returns. |
| Amended or Corrected Returns. |
| Returns reporting a Delaware Lump Sum Distribution. |
| Returns on which the
number of exemptions claimed on the State return does not match the number of
exemptions claimed on the Federal Return. The only exception to
this ruling would be additional exemptions for a taxpayer and/or spouse 60
years of age or over. |
|
Requirements |
| Electronic filing
requires a PC with a modem which gives access to the IRS computer system.
Transistors are required to subscribe to the G A C Taxpro, Incorporated, which
is used to communicate acknowledgment records back to the transmitter.
More specific equipment requirements are listed in IRS Publication 1345. |
|
How Can I Learn More
About Electronic Filing? |
| Delaware has created two
handbooks which can be helpful to potential participants in the E-File program: |
| DE 1345 - Handbook for Electronic Filers of Individual Income Tax Returns, and |
| DE
1346 - Electronic Return File Specifications and Record Layouts. |
| Publication DE 1345
outlines the program and requirements in detail for potential Electronic Filers. |
| Publication DE 1346
outlines the program and provides specifications
for potential Software Developers. The DE
1346 can be ordered by contacting Lisa L. Jones through the contact information
provided below. DE 8453 Individual Income Tax - Declaration for Electronic Filing DE 8453OL - Delaware Individual Income Tax - Declaration for On-Line Filing
|
|
IRS E-File Specifications Delaware E-File Specifications |
|
Contact Information: |
| To speak to a Delaware
E-File Representative, call: |
| James A. Stewart, III, E-File Project Manager at (302) 577-8170 or james.stewart@state.de.us |
| Lisa
L. Jones, E-File Project Assistant at (302) 577-8171 or lisa.l.jones@state.de.us |
| or write to: |
|
Delaware Division of Revenue
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