How to paper file returns in Lacerte

Sometimes a return may need to be paper filed with the IRS. To do this, you'll mark the return for paper filing in the program, and file Form 8948, Preparer Explanation for Not Filing Electronically.

Effective December 24, 2025, the USPS has changed how mailed items are postmarked. This can impact if paper filed returns and payments are considered on time. This change does not impact e-filed returns. See here for more information.

Follow these steps to mark the return for paper filing:

1. Go to Screen 1, Client Information.
2. Under the Electronic Return section, make sure the Federal box isn't checked.
   • The program will recognize the client file as being paper filed and will no longer produce e-file diagnostics, e-filing instructions, or Form 8879.

Follow these steps to generate Form 8948 in the program:

1. Go to Screen 4, Electronic Filing.
2. Click on e-file PDF/Miscellaneous from the left navigation panel.
3. Scroll down to the Form 8948 Preparer Explanation for Not Filing Electronically section.
4. Check only one box to indicate why this return isn't being e-filed.
   • For Taxpayer(s) chose to file return on paper, enter the Waiver reference number [O] and the Waiver approval date [O] if applicable.
   • For Return was Rejected by IRS, enter the Reject error code and the Number of attempts to resolve reject.
     • Check out this article for information on paper filing rejected electronic returns.
   • For Software does not support the following items on the return, enter the Form or the Schedule.
   • For This preparer is currently ineligible to e-File, enter the reason in Other: Describe other reasons the preparer is unable to e-File (Ctrl+E).

Form 8948 Taxpayer's Opt-Out statement must be signed and kept for your records when a taxpayer chooses to file their return on paper. The statement will be labeled e-file Opt-Out on the Forms tab of Lacerte. It can't be edited in the program. For more information on documenting a taxpayer's choice to paper file, see Rev. Proc. 2011-25.  

Diagnostics resolved by paper filing a return:

• If Form 1040, Earned Income Credit has a non-zero value, then one of the following must be true: (1) household employee wages, or TIP income not included in wages, or Medicaid waiver payments not reported on W-2, or Form 2441 taxable benefit amount, or Form 8839 taxable benefit amount, or total wages with no withholding amount, or other earned income amount or  nontaxable combat pay election amount must be greater than zero, or (2) the wages not shown schedule is present with excess minister's allowance added to wages or health insurance premiums for a retired public safety officer, or (3) Schedule E, has income from a partnership, or (4) the FEC Record is present with foreign income present on the wages schedule, or (5) one of the following forms is present in the return: Form W-2, Form 1099-R, Schedule C, Schedule F, Form 8919, or Form 4137. (ref. #11919)
• The program does not support Form 8978 for federal e-file. This return must be filed as a conventional paper return. (ref. #53383)
• Electronically filed returns are limited to thirty-six (36) short-term Schedule MI-8949 items. This return must be filed as a paper return. (ref. #5872)