Self Prepared (XSP) but Proseries seems to want ERO information for efiling Federal or State returns. I am not an ERO.

[LiebeNigro]

Proseries issue:  Problems with preparing for Electronic Filing as a Self-Prepared User

I am a single user of ProSeries Professional 2020 making a joint tax return for my husband and myself.  The returns are SELF-PREPARED (XSP) designation.  I am getting errors because ProSeries seems to want ERO information. 

On the Federal and Virginia State Returns:

1. On the Federal Information Worksheet, Part V The Preparer Code on the Part V – Return Preparer and Third-Party Designee Information is XSP
2. I am NOT an ERO.  
3. On the Federal Information Worksheet, Part VI Electronic Filing of Tax Return Information, I check the File Federal Return Electronically and
4. I check File State or City Returns Electronically and
5. I select the State of Virginia for the return to be filed electronically in Virginia 
6. On the Federal Information Worksheet, Part VII Electronic Filing of Tax Return Information – Continued, I select the checkboxes Practitioner PIN Program “Taxpayer(s) entered own PIN(s)” 
7. On the Firm/Prepared Info worksheet,  I have included an EFIN, because otherwise, the field is in red as an error.  I am NOT a professional tax prepared, so the ERO section is blank.
8. On the VIRGINIA Information Worksheet, I see an Error on Part V – Electronic Filing Information “The state return will be filed electronically.” 
9. When I hover the mouse over the red X, the error message reads “Electronic Filing Yes box has been checked to efile the state return.  You have an error because you need to complete the Electronic Return Originator for this return.  Go to the Federal return and correct the errors that are related to the ERO information.  The ERO EIN or SSN/PIN should be entered on the ERO information screen.” 
10. I am NOT an ERO.   The Preparer Code on the Part V – Return Preparer and Third Party Designee Information is XSP 
11. HOWEVER, If I leave the EFIN information out on the Federal Form Firm/Prepared Information, ProSeries indicates an ERROR because the field is in RED.  But if this EFIN information is left out of the Federal Form, there is NO error on the Virginia Information Worksheet.
12. Either way, something is not right here.    Is this a bug?

[TAXOH]

If you are efiling within Proseries you need a valid EFIN because even if it is self prepared you are an ERO because you are transmitting it electronically. 

[IRonMaN]

With professional tax software, e-file = EFIN.  No EFIN, no e-file.  If you want to e-file your own return you have to use something like Turddottaxx.  If you want to use ProSeries you will have to paper file your return.

[LiebeNigro]

So if I put in an EFIN then I can file the feds electronically but not Virginia, I guess.   This does not make sense but efiling with the feds is easier than dealing with a paper form.  That is, it seems that Virginia requires me to be an ERO.  Since I am not an ERO, I can't apply to be one.

????  

[TAXOH]

Where did you get an EFIN from?  If you just made up a number to get rid of the error, you can't do that. 

[itonewbie]

@LiebeNigroAre you a tax professional?  If so, you are generally required to e-file if you will prepare more than 10 federal returns in a year.  I see that VA has a much higher threshold of 50.

In order to e-file for your client (and to use any professional tax software, including ProSeries), you must be an ERO.  To be an ERO, you must apply for and be issued an EFIN.

With an EFIN, you are an ERO and can e-file both federal and state returns.  Without an EFIN, you are not an ERO and can't e-file (whether for yourself or your client).  That's just how the process works.

In case you are not familiar with the rules, you may like to refer to this IRS webpage for the FAQs:

https://www.irs.gov/e-file-providers/frequently-asked-questions-e-file-requirements-for-specified-ta...

[itonewbie]

For example, if you prepare 20 federal returns and 20 VA returns, you are generally required to e-file your clients' federal returns but not VA.  However, it would make no sense to not e-file VA returns just because you are not required to because you should then already have applied for and issued an EFIN to be an ERO.

[LiebeNigro]

No, I am NOT  a tax professional.  That is my point.  I  have been using ProSeries for about 15 years to file our joint tax returns to the Feds and Virginia, mainly because it can deal with K1s and for no other major reason.  I thought we should try filing electronically this year, so I started to fill out the form as my note describes.  If I put an EFIN (made up number) on the TOP PART only of the Firm/Preparer information pop-up form, I do not get any errors on the federal form, but I cannot file the VA form electronically.  I do not understand why I have to be an ERO to use this software electronically.  I will never qualify as I am not a professional preparer.

[itonewbie]

If you are not a tax professional, you won't be able to e-file with any professional tax software, including ProSeries.  Entering a fictitious EFIN may not trigger an error before you actually attempt to e-file the return but Intuit will almost certainly reject your submission (without even trying to transmit the return to the IRS) because all EFIN's must first be verified by Intuit, based on an EFIN confirmation from the IRS, through a separate process.

As my friends already suggested, your only option, if you want to e-file your returns, would be to use TurboTax or other similar consumer products.

[IRonMaN]

"If I put an EFIN (made up number)"

Nothing good ever happens with "made up numbers" when dealing with the IRS.  😅

[itonewbie]

---

@IRonMaN wrote:

"If I put an EFIN (made up number)"

Nothing good ever happens with "made up numbers" when dealing with the IRS.  😅

---

I think I smell Lutekisk. 🐟

[LiebeNigro]

Ok. I surrender.  I created PINs for my husband and myself without problems.  

Over and out.  Thanks for the information.  I thought it might have been a bug, but I guess this is a feature.

Elizabeth

[Just-Lisa-Now-]

---

@LiebeNigro wrote:

No, I am NOT  a tax professional.  That is my point.  I  have been using ProSeries for about 15 years to file our joint tax returns to the Feds and Virginia, mainly because it can deal with K1s and for no other major reason.  I thought we should try filing electronically this year, so I started to fill out the form as my note describes.  If I put an EFIN (made up number) on the TOP PART only of the Firm/Preparer information pop-up form, I do not get any errors on the federal form, but I cannot file the VA form electronically.  I do not understand why I have to be an ERO to use this software electronically.  I will never qualify as I am not a professional preparer.

---

You wont be able to file electronically without being an ERO that has a valid EFIN....paper will be your only option.

[itonewbie]

---

@LiebeNigro wrote:
..I thought it might have been a bug, but I guess this is a feature.

---

Sorry to be the party pooper.  To be exact, however, it is not a feature but a requirement of the IRS.  There are other things that ProSeries could do better but this one is out of their hands.

[LiebeNigro]

Ok  If I use TurboTax, do you know WHICH version will manage K1s?  Otherwise, our returns are really simple.  Schedules A, B, C, and E.  thanks for everyone's advice.  Elizabeth

[itonewbie]

Since this Community is only open to discussions related to Intuit's professional tax products and other related professional tax questions, we won't be able to assist with queries about TurboTax.  You may like to try the TurboTax Help site for support instead.

[philchavez]

I attempted to file an extension today as a Self Prepared (XSP) return and the transmission rejected because the eFile failed to include an EFIN PIN. I've been using ProSeries Professional for years and never encountered this issue before. I tried unsuccessfully to enter my own EFIN PIN (since I'm also the ERO) into the 4868 EF Information Worksheet.

Thanks for the suggestion LiebeNigro. I did nearly the same thing...on the Form 4868 EF Information Worksheet, I checked the box "Automatically generate a PIN equal to last 5 digits of client's SSN". My extension transmitted without fail. Problem solved.

[DParrish]

Regarding paper returns filed for 2020.

I have filed two paper returns via certified mail before the due date and the IRS has not acknowledged the existence of either tax return.  They cannot be found in the system.  The certified return receipt was received about 12 weeks later, unsigned and not dated by the IRS of course.

when you are an ERO with an EFIN but you use your SS# instead of applying for a company tax id #, you still cannot file your personal taxes, which is insane to me.  I can file 60 tax returns for everyone else, but not for myself.  Where is the logic behind it?

[sjrcpa]

Per the IRS:

"As of September 25, 2021, we had 7.6 million unprocessed individual returns."

"Tax returns are opened and processed in the order received. As the return is processed, whether it was filed electronically or on paper, it may be delayed because it has a mistake including errors concerning the Recovery Rebate Credit, is missing information, or there is suspected identity theft or fraud. If we can fix it without contacting you, we will. If we need more information or need you to verify that it was you who sent the tax return, we will write you a letter. The resolution of these issues could take 90 to 120 days depending on how quickly and accurately you respond, and the ability of IRS staff trained and working under social distancing requirements to complete the processing of your return."

IRS Operations During COVID-19: Mission-critical functions continue | Internal Revenue Service

[AnnettePK]

I have filed paper returns because I only prepare a very few returns and am not an IRO. Most are self prepared for myself and immediate family. No problem for decades until covid, and half the paper returns all mailed certified got lost, didn't get processed, or got processed with omissions.    

I have not found a way to file electronically for self prepared returns using Proseries, even though I have a PTIN.

[Just-Lisa-Now-]

You need an EFIN, or you need to use consumer software like Turbotax in order to Efile a tax return.