{"id":58,"date":"2024-10-23T20:05:36","date_gmt":"2024-10-23T20:05:36","guid":{"rendered":"https:\/\/www.taxcoursesonline.com\/blog\/?p=58"},"modified":"2024-10-23T20:05:38","modified_gmt":"2024-10-23T20:05:38","slug":"electronic-return-originatorsero-due-diligence-requirements","status":"publish","type":"post","link":"https:\/\/www.taxcoursesonline.com\/blog\/electronic-return-originatorsero-due-diligence-requirements\/","title":{"rendered":"Electronic Return Originators(ERO) Due Diligence requirements."},"content":{"rendered":"

\"tco_logo1<\/a><\/p>\n

Welcome to Tax Courses Online Newsletter. We strive to keep you current on information relevant to Tax Preparers.<\/p>\n

Electronic Return Originators(ERO) Due Diligence requirements.<\/p>\n

Having been an ERO since 1994, it’s been a while since I have looked at Publication 1345 Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns Publication 1345. IRS updated the publication in 2022, so it was worth a look.<\/p>\n

Some of the important issues are outlined below.<\/p>\n

1. Please check the accuracy of your current information in your e-services account. We are required to update our account information within 30 days if there is a change of address, telephone number, email address, change of business structure, or a responsible individual.<\/p>\n

IRS also requires Website addresses if any information is being collected from taxpayers for federal income tax returns on that website.<\/p>\n

2. EROs are required to be diligent to prevent fraud in the IRS\u2019s E-file system. If the ERO is also the preparer of a return, extra due diligence is required for returns involving Earned Income Tax Credit (EITC), a popular area of abuse.<\/p>\n

3. As an ERO, we are required to:
\nConfirm the identity of all parties listed on the tax return.
\nInspect a valid government-issued ID for all new taxpayers to the firm.<\/p>\n

Examples of valid IDs are:
\nGovernment-issued driver’s license or ID Card
\nGovernment employer, school, state, military, national ID Card
\nVoter ID or visa or passport.<\/p>\n

Verify a taxpayer’s Social Security card or ITIN letter for accuracy
\nVerify the W-2 matches the identification number provided
\nVerify and input the address on a W2 record that differs from the filing address on the tax return<\/p>\n

4.. Other requirements for ERO\u2019s
\nFile returns within 3 days of obtaining signatures
\nDo not charge a separate fee for direct deposit
\nDo not have any of the taxpayer’s refund directly deposited into the ERO or preparers account
\nDo not file any return before receiving the Form W2, W2G, or Form 1099R. If any of these forms cannot be obtained Form 4852 Substitute for Form must be used.
\nAny changes to the tax return after the taxpayer has signed the electronic transmission form (Form 8879 or Form 8453) if the amount of change to AGI is more than $50 or the change to tax is more than $14 requires the taxpayer to sign a new form.<\/p>\n

5. The following signature methods are acceptable:
\nHandwritten signature on an electronic signature pad
\nHandwritten signature on a display screen using a stylus
\na digitized image of a handwritten signature that is attached to an electronic record
\nthe typed name typed into the signature block on a website form<\/p>\n

Additional requirements if the signature is obtained remotely:
\nCapture the digital image on the signed form
\nCapture the date, time, and IP address
\nThe electronic signature process must be able to generate evidence that the person is the person the electronic signature belongs to and that the identified person is actually associated with the electronic record.<\/p>\n

6. Create a written Information Security Plan for your Tax & Accounting Practice using publication 5708 as a guideline.<\/p>\n

7. Add multi-factor authentication to the basic security steps<\/p>\n

My final advice is when in doubt, get more information and document, document, document.<\/p>\n

Thank You,
\nThe Tax Courses Online team<\/p>\n","protected":false},"excerpt":{"rendered":"

Welcome to Tax Courses Online Newsletter. We strive to keep you current on information relevant to Tax Preparers. Electronic Return Originators(ERO) Due Diligence requirements. Having been an ERO since 1994, it’s been a while since I have looked at Publication 1345 Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns Publication 1345. IRS […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[1],"tags":[],"yoast_head":"\nElectronic Return Originators(ERO) Due Diligence requirements. - Tax Courses Online Blog<\/title>\n<meta name=\"description\" content=\"ERO, E Filing, Due Diligence\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.taxcoursesonline.com\/blog\/electronic-return-originatorsero-due-diligence-requirements\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Electronic Return Originators(ERO) Due Diligence requirements. - 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