Getting ready for the 2008 tax season
Know your responsibilities. You and your clients are responsible for correctly reporting all information that is required by the Internal Revenue Service or applicable state taxing agency, and for the accuracy of each return that you file.
Be familiar with your computer system. If you’re unfamiliar with the basic operation of your computer or your Microsoft Windows operating system, read the owner’s guide for your computer or Windows help.
Understand the ProSeries Basic Edition License Agreement. The ProSeries Basic Edition License Agreement appears at the start of the installation procedure. After the software has been installed, you can review the ProSeries Basic Edition License Agreement by selecting License Agreement in the Help Center.
Please note the following conditions of the ProSeries Basic Edition License Agreement:
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You are licensing the software for use by a named entity and its employees at one identified location.
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You are representing to Intuit® that the firm name and address you provide is the primary firm name and location used in the normal course of business.
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This is the name and address under which you market yourself and your professional services.
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You may enter information about multiple preparers, provided that they all are employees of the firm listed at that particular address.
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Multiple preparers who operate as separate and distinct firms—even if they share office space—are considered to be unique and each preparer must purchase a license for his or her own copy of ProSeries Basic Edition software.
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Preparing for electronic filing
Electronic Filing Identification Number (EFIN). You must have an IRS‑issued Electronic Filing Identification Number (EFIN) if you want to file your clients’ federal returns (or extension request forms) electronically. In addition, you must be able to connect to the Internet from the computer on which you install the ProSeries Basic Edition program.
Applying for an EFIN
If you are new to electronic filing or no longer have a valid EFIN, you can apply for one using either of the following methods:
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Online. To use the IRS e‑file application, go to http://www.irs.gov, click the IRS e‑file logo, click on the e‑services link in the e‑file for Tax Professionals section, then follow the instructions on the screen.
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You must use the version of Form 8633 dated July 2003. If you submit an earlier version, the IRS will reject your application. The IRS recommends that you submit your application at least 45 days prior to the date that you intend to begin filing returns electronically. You can find Form 8633 and information about electronic filing at the IRS Web site, which is http://www.irs.gov.
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The IRS strongly recommends that you use the Online method to apply for an EFIN.
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You can find information about electronic filing at http://www.proseries.com. Select Products, then Electronic Filing. If you have additional questions about electronic filing, call the IRS e‑help desk at 1‑866‑255‑0654.
State enrollment requirements
Some states require additional electronic filing enrollment paperwork. Verify the electronic filing enrollment requirements for each state where you plan to file returns electronically.
You can link to each state taxing agency’s Web site from http://www.proseries.com. Select Resources, then Tax Links, then State Tax Departments, then the name of the state.
For more information about electronic filing, see Filing returns electronically.
Preparing to offer bank products
When you file your clients’ individual returns electronically, they can receive proceeds based on their expected federal refunds in the form of Refund Anticipation Loans (RALs), Refund Anticipation Loan Direct Deposits (RALDDs), Refund Transfers (RTs), and Refund Transfer Direct Deposits (RTDDs). In addition, your fees can be deducted from the client’s refund and deposited into your bank account electronically.
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Under certain circumstances, you can offer a client an RT or RTDD based on the expected refund from a state return.
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Before you can offer bank products to your clients, you must first apply to either Santa Barbara Bank & Trust or Refund Advantage to participate in their banking products program. To apply, go to http://www.proseries.com, select Products, then Bank Products, then select the Enroll Now link that you want.
For more information about bank products, see Overview of Bank Products.
Ordering presentation folders and envelopes
To purchase presentation folders and window envelopes, call Professional Tax Products at 1‑888‑236‑8137, or go to the Professional Tax Products Web site at http://www.proseriessupplies.com.
Preparing to use your ProSeries Basic Edition products
After you install the software, the ProSeries Basic Edition program performs product licensing, which licenses the software that you ordered to your firm. (For more information, see Setting up the ProSeries Basic Edition program and Product licensing.)
Product licensing information
Product licensing identifies the ProSeries Basic Edition software that’s available to you and defines the limits on your use of your ProSeries Basic Edition software.
To see product licensing information before you install ProSeries Basic Edition software:
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Go to http://www.proseries.com, then navigate to the My ProSeries area
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To see product licensing information after you install ProSeries Basic Edition software:
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Go to the Information menu and select Product Licenses
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Preparing federal returns
When you ordered ProSeries Basic Edition software, you chose one of the following ways to prepare federal returns:
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Limit of 50 federal returns. If you need to prepare more than 50 federal returns, prepare the “additional” returns on a pay-per-return basis.
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Prepare federal returns on a pay‑per‑return basis. You can prepare federal returns for $18 per return if you licensed the 50-return option, and you need to prepare more than 50 federal returns.
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Preparing state returns
You also chose one of these options for preparing state returns:
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No limit to the number of returns for four states. If you licensed the four‑state option, you can prepare an unlimited number of state returns using the four state products that you selected for licensing.
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No limit to the number of returns for two states. If you licensed the two‑state option, you can prepare an unlimited number of state returns using the two state products that you selected for licensing.
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Limit of 50 returns for two states. If you licensed the 50‑return option, you can prepare up to 50 state returns using the two state products that you selected for licensing. If you need to prepare more than 50 state returns, prepare the “additional” returns on a pay-per-return basis.
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Prepare state returns on a pay‑per‑return basis. You can prepare state returns for $14 per return under any of the following circumstances:
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You licensed the two‑state option or the four-state option, and you need to prepare returns for other states.
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You licensed the 50‑returns for two states option, and you need to prepare more than 50 state returns for those states.
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You licensed the 50‑returns for two states option, and you need to prepare state returns for other states.
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For more information about using the pay‑per‑return system, see Using ProSeries Basic Edition products on a pay‑per‑return basis.
Electronic filing
If you ordered ProSeries Basic Edition electronic filing capability, all of the following apply to your use of ProSeries Basic Edition software to file federal and state returns electronically:
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Limit of 100 federal returns and the associated state returns. You can electronically file up to 100 federal returns and all state returns that are associated with those federal returns.
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File more than 100 federal returns electronically. If you need to electronically file more than 100 federal returns (and the state returns that are associated with those federal returns), file the “additional” returns on a pay-per-return basis.
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File additional federal and state returns on a pay‑per‑return basis. You can electronically file federal returns for $3 per return and state returns for $2 per return using the pay‑per‑return system.
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For more information about using the pay-per-return system, see Using ProSeries Basic Edition products on a pay‑per‑return basis.
Monitoring your 50‑return or 100‑return usage
If you licensed a 50‑return preparation option or a 100‑return electronic filing option, here’s how you can check the status of your use of ProSeries Basic Edition software.
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Go to the Information menu and select Return Usage & State License Status
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The program informs you when only five returns remain until you reach a 50‑return preparation limit or a 100‑return electronic filing limit.
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Keeping your product licensing information up‑to‑date
You’ll need to update your product licensing information under the following circumstances:
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Before you begin to prepare client returns, you upgrade your ProSeries Basic Edition license. Before you begin to prepare client returns, you can upgrade your license:
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From the Basic 50 Returns package to the Basic Unlimited Returns package or the Basic Unlimited Returns-100 e-File package, or
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From the Basic Unlimited Returns package to the Basic Unlimited Returns-100 e-File package
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The ProSeries Basic Edition software or a ProSeries Basic Edition representative instructs you to update your product license information
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If either of these situations occur, you’ll need to update the product information for your firm. To do so, go to the Tools menu, select License Products, then select Online (Recommended) or Manual. For more information, see Updating your firm’s product licensing information.
Using ProSeries Basic Edition products on a pay‑per‑return basis
When you use ProSeries Basic Edition software on a pay‑per‑return basis, you might need to:
Add funds to your pay‑per‑return account balance. Go to the Tools menu, select Pay Per Return, then select Increase account balance.
In the Increase Account Balance dialog box, select Online or Manual, click OK, then follow the instructions on the screen.
Authorize payment for pay‑per‑return processing. If you prepare federal or state returns on a pay‑per‑return basis, you must authorize the applicable payment for each return before you can print it. If you electronically file federal or state returns on a pay‑per‑return basis, you must authorize the applicable payment for each return before you can file it electronically.
Check the balance of your pay‑per‑return account. Go to the Tools menu, select Pay Per Return, then select Show account balance.
Increase the balance of your pay‑per‑return account. Go to the Tools menu, select Pay Per Return, select Increase account balance, select Online or Manual, click OK, then follow the instructions on the screen.
View or print the Pay‑Per‑Return audit report. Go to the Tools menu, select Pay Per Return, then select View audit report or Print audit report.
Preparing to provide specific information
You will be prompted for information about the following topics while you’re setting up your ProSeries Basic Edition program. (You can enter this information later as you use the ProSeries Basic Edition program, if you prefer.)
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Firm and Preparers
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Basic information about your firm and the preparers who will be using the ProSeries Basic Edition software
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Information about the person(s) who will be the electronic filing contact(s) for your firm (if you’re going to offer electronic filing to your clients)
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Your bank products registration information, including information about the bank account where your fees will be deposited by Santa Barbara Bank & Trust (if you’re going to offer bank products to your clients through Santa Barbara Bank & Trust)
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