Tax preparer low scale - acts as a sole proprietorship

Forum|Forum|5 years ago
September 24, 2020
7 replies
51 views

Hey,
I'm new to tax return preparation after 8 years at the one of the big4 assurance departments. I want to start doing tax returns for friends and relatives for moneys (very limited). As of now I have 4 potential client in 2020. I want to start as sole proprietorship. I registered and received a PTIN. I have read that I don't need a EFIN as long as I don't exceed the 11 tax return threshold a year (in 2020). I file tax return for foreigners (federal tax returns only - no state).

My question is -
what should I place as Firm's name and EIN? leave it blank? I'm not associated in any sort of a business (act as a sole proprietorship).

Thank you,

This topic has been closed for replies.

IRonMaN

Level 15

But you do need an EFIN if you plan on e-filing any of those 4 returns.

Slava Ukraini!

S

shachar1831Author

Level 4

Hello,

Thanks for the comment.
According to the Publication 3112:
'Most Tax Return Preparers Must Use IRS e-file
Any tax return preparer who anticipates preparing and filing 11 or more Forms 1040 and/or 1041 during a calendar year generally must use IRS e-file.

I do not anticipate preparing and filing 11 1040 forms.

IRonMaN

Level 15

That's fine as long as you are planning on paper filing the up to ten returns that you prepare. If you have a desire to e-file even one of them, you will need an EFIN.

Slava Ukraini!

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