E-filing tips from calcpa members.

BY now its no secret that starting Jan. 1, 2004, tax practitioners who file 100 or more individual state tax returns and use tax preparation software are required by state law to e-file.

Since many of your peers will e-file for the first time in 2004, we asked CalCPA members to share any gems of wisdom they have learned to make that first filing season a little easier.

Below is a list of the 10 most common themes to emerge from that poll:

1. With married taxpayers, make sure that each spouse's last name has been changed with the Social Security Administration. The most common rejection some of our members received was due to the spouse's name and SSN not matching.

2. For all returning 1040 clients, key all W2s and all 1099-Rs in full e-file detail prior to Dec. 31. Do this on the 2002 tax system now, rather than waiting for 2003 system to roll over automatically. The time spent inputting that data will save untold frustration next tax season.

3. Check your practitioner ID number. A "0" must be the number zero, not the letter "O."

4. Set up a side control folder for e-file agreements and PIN authorities so that the signed ones are all in one place. Communicate with the client that you must have the papers in hand prior to pushing the button.

5. Be sure to keep copies of all required attachments to tax returns--this is an e-file requirement.

6. In the past, the IRS required practitioners to input all 1099s completely for e-filing; now the IRS only requires one to input the whole 1099 if there is withholding.

7. When you receive error messages, they reflect all possible errors, not just the ones for your situation.

8. For all returning 1040 clients, consider entering client bank account and routing numbers to provide direct deposit of refunds. Remember, not all account numbers and check bottom numbers are set up in the same order.

9. Be prepared for a possible increase in the number of returns put on extension next year, as the first year's implementation of e-filing may not go as smooth as the FTB hopes.

10. Submit your application to be approved for IRS e-filing if you haven't already--it's the first step to e-file with the state.

Special thanks to members Donna Tomber, Daniel Siri, Jane Newbury, Hillary Tentler, Bill Hartley, Dana McCaulley, Mark Allen, Noelle Allen and Glenn Baer for offering their expertise.