Questions and Answers for

Tax Professionals

w w w . ir s . g o v /e f i l e

consider it done

1. What’s new for the IRS e-file Program 

in Tax Year 2006?

A. The following new forms are accepted for e-filing: 

Form 1040EZ-T, Claim for Refund of Federal 

Telephone Excise Tax

Form 5695, Residential Energy Credits

Form 8888, Direct Deposit of Refund

Form 8900, Qualified Railroad Track 

Maintenance Credit

Form 8906, Distilled Spirits Credit

Form 8907, Nonconventional Source Fuel Credit

Form 8908, Energy Efficient Home Credit

Form 8910, Alternative Motor Vehicle Credit

Form 8911, Alternative Fuel Vehicle Refueling 

Property Credit

Form 8912, Clean Renewable Energy Bond Credit

Form 8913, Credit for Federal Telephone Excise Tax Paid

B. Form 1040 Series Changes for Tax Year 2007 include:

The deduction for Educator Expenses expired and the 

line is replaced with the Archer MSA deduction on Form 

1040, and replaced with Penalty on Early Withdrawal of 

Savings on Form 1040A. 

The Tuition and Fees deduction expired and the line 

is replaced with Jury Duty Pay for Form 1040/1040A.

Several business credits that were previously reported 

on Form 1040 will be reported on Form 3800. 

The Adoption Credit has moved to a different line of 

Form 1040 and was deleted from Form 1040A. 

C. Acknowledgement File Record. There will be a new 

field on the Acknowledgement File Record to identify 

taxpayers who have not submitted the required 

Form 8453-OL in the past two years. The new field, 

Non-Compliant Indicator (8453-OL) is SEQ 0015.

D. Federal/State e-file. In Filing Season 2007 (Tax 

Year 2006), Individual e-file will accept Federal/State 

imperfect returns when indicated by the Electronic 

Return Originator (ERO) on the second or subsequent 

filing when 1) the Child’s SSN and Name Control on 

Schedule EIC does not match Master File, or 

2) when the Dependent’s SSN and Name Control 

on Form 1040/A does not match Master File.

E. Electronic Transmitted Document (ETD) Changes. 

Extension requests for deceased taxpayers can be 

filed electronically. The extension request can be for 

a taxpayer with a Date of Death in the current tax 

year or processing year. 

F. Schedule D-1, Paper Document Indicator. Paper 

Document Indicator 11 (sequence 0181) has been 

added to the Summary Record to indicate that 

Schedule D-1 or an acceptable substitute will be 

submitted with Form 8453 or 8453-OL. 

G. Processing Site Realignment. Kansas and Missouri 

e-filed returns will be processed in Kansas City instead 

of Austin.

H. Form 8888, Direct Deposit of Refund. For Filing Season 

2007, taxpayers will be able to use direct deposit to 

divide their refunds. Form 8888, which may be filed 

electronically, will allow taxpayers to deposit their 

refund in up to three designated accounts, such as 

checking and/or savings.

I. Electronic Funds Withdrawal. You can now schedule 

up to four Form 1040-ES payments while e-filing 

individual returns. These payments can be scheduled 

up to 365 days in advance of the due date. 

Tax Year 2006 

Important Dates

Begin transmitting 

live IRS e-file returns 

January 12, 2007

Last date for transmitting 

timely filed returns 

April 16, 2007

Last date for transmitting 

timely filed Forms 4868 

April 16, 2007

Last date for retransmitting 

rejected timely filed returns 

April 20, 2007

Last date for retransmitting 

rejected timely filed Forms 4868 

April 20, 2007

Last date IRS will accept 

test transmissions 

No cut-off date

Last date to submit 

new IRS e-file Applications 

No cut-off date

Transmitting timely filed 

Forms 4868 or 2350 to meet 

overseas exception 

June 15, 2007

Retransmitting rejected timely 

filed Forms 4868 or 2350 to 

meet overseas exception 

June 20, 2007

Last date for transmitting 

returns on extension from 

Form 4868 

October 15, 2007

Last date for retransmitting 

rejected late or returns on 

extension from Form 4868 

October 20, 2007
2. What’s new for credit card payments?

Beginning January 1, 2007, Form 940 and Form 

941 filers can make credit card payments for 

balances owed that are up to 10 tax years past 

due. Form 944 balance due payments can 

also be paid by credit card. Note: Federal tax 

deposits cannot be paid by credit card. Credit 

card payments will be accepted for a Trust Fund 

Recovery Penalty (TFRP) assessed against an 

individual. These payments can be made by 

phone or Internet.

3. Do your clients want to know the 

status of their refund?

Go to www.irs.gov/efile and click on Where’s 

My Refund?

You filed your client’s tax return and they are 

expecting a refund. They have just one question 

and they want the answer now—Where’s 

My Refund?

They can access this secure Web site to find out 

if the IRS received their return and whether their 

refund was processed and sent to them. They 

can get their refund status by providing the 

following information as shown on their return:

■ Social Security Number (or IRS Individual 

Tax Identification Number) 

■ Filing Status (Single, Married Filing Joint 

Return, Married Filing Separate Return, Head 

of Household, or Qualifying Widow(er)) 

■ Refund amount

Okay now, Go Get My Refund Status!

Note: If they have trouble while using 

this application, advise them to check the 

Requirements to make sure they have the 

correct browser software for this application 

to function properly.

4. Did you know the “QuickAlerts” 

Messaging System is FREE?

This online messaging system disseminates 

mass e-file messages, within seconds, to all 

subscribed Authorized IRS e-file Providers 

(Software Developers and Transmitters). 

See the enclosed Publication 4003, QuickAlerts

brochure, for detailed information, and 

sign up today!

5. Is the IRS e-file logo available on the 

Internet for download?

Yes. The IRS e-file logo is available for download 

at the IRS Web site, www.irs.gov/image/eflpc.gif.

6. What software should I use to prepare 

individual tax returns for my clients?

The IRS does not provide software but does 

issue specifications that commercial software 

developers use to write software packages 

that are available for purchase. Generally, there 

is tax preparation software and transmission 

software. Talk with vendors, resellers and 

software company representatives to find the 

best solution for your business. Shop around 

or ask other Authorized IRS e-file Providers 

what software they use to e-file. The software 

is developed specifically for tax preparers. The 

software that is developed for individuals to use 

is limited to a specific number of e-filed returns.

7. What is a Preparer Taxpayer 

Identification Number (PTIN)? 

How do I get a PTIN?

The PTIN is an identification number assigned by 

the IRS for use as an alternative to using a Social 

Security Number on the tax returns prepared by 

tax preparers. The PTIN applies to all individual 

forms that have paid preparer information on 

them. The PTIN internet application enables a 

paid preparer to request electronically a PTIN, 

request a new PTIN card, update their PTIN 

records or look up a forgotten PTIN. Access 

through www.irs.gov and click on e-services.

8. What do I do if my client’s return 

was filed April 16th, but it rejected 

because of an error with the date of 

birth the IRS received from the Social 

Security Administration?

You can file for an extension, have your client 

correct their records with the Social Security 

Administration (SSA), and resubmit the return 

electronically. It may take a few weeks before 

the SSA records are updated. If you don’t want 

to wait for the SSA corrections, the return can 

be mailed.

9. Can a nonresident alien e-file 

Form 1040 NR-EZ?

No. A paper return must be filed.

10. Can I e-file a prior year return?

No. The IRS e-file Program only accepts current 

year returns.

11. Why should I encourage my 

clients to e-file when they are not 

getting a refund?

Your client’s return can be e-filed any time 

during the filing season. Individual and 

business e-filers can authorize electronic funds 

withdrawal payments. Additionally, individual 

filers may delay out-of-pocket expenses by 

e-filing and electronically paying the balance due 

with a credit card. When a balance due return is 

filed late in the filing season, there may be more 

chance of errors in the rush to file before the 

deadline. Errors cost money, and in some cases 

additional penalties and interest. Errors can also 

cause lost time for you and your clients.

12. What are the benefits of 

paying electronically?

E-filing a balance due return with an electronic 

payment is a safe, secure and convenient way 

to be assured of on-time receipt of both the 

return and payment. This reduces the chance of 

errors. When you file and pay electronically, you 

eliminate the need to mail a paper voucher. You 

receive an electronic acknowledgement once 

the return is accepted. Integrated e-file and 

e-pay options are available throughout the e-file 

season. Many options are available year round.

13. What types of individual taxes can be 

paid by an electronic funds withdrawal, 

and when can payments be made?

Payments can be made for (1) current year 

Individual Income Tax Returns (1040 series); 

(2) Form 4868, Application for Automatic 

Extension of Time to File U.S. Individual Income 

Tax Return; (3) Form 2350, Application for 

Extension of Time to File U.S. Individual Income 

2
Tax Return; and (4) Tax Year 2007 Form 1040-ES, 

Estimated Tax for Individuals.

A payment can be scheduled to be withdrawn in 

the future beginning January 12, 2007. Payments 

scheduled for withdrawal on or before the return 

due date will be considered timely. After the 

return due date, the payment date will be the 

same as the date the return or form is filed. New 

for 2007, up to four estimated tax payments can 

be scheduled for withdrawal on the following 

dates, respectively: April 16, 2007, June 15, 2007, 

September 17, 2007 and January 15, 2008. If 

necessary, scheduled payments can be cancelled 

by calling the U.S. Treasury Financial Agent at 

1-888-353-4537, by 8 p.m. Eastern Time, at least 2 

business days before the scheduled payment date.

14. What types of business taxes can 

be paid by an electronic funds withdrawal 

and when can payments be made?

Payments can be made for:

■ Form 940 series, 941 series and 944 Employment 

tax forms 

■ Form 1041, U.S. Income Tax Return for Estates 

and Trusts

■ Form 1120, Form 1120S and Form 1120POL, 

U.S. Corporation Income Tax Return and Schedule 

K-1 (including amended returns) 

■ Form 7004, Application for Automatic Extension 

of Time to File Corporation Income Tax Return

■ Form 8868, Application for Extension of Time to 

File an Exempt Organization Return 

■ Form 990-PF, Return of Private Foundation or 

Section 4947(a)(1) Nonexempt Charitable Trust 

Treated as a Private Foundation 

■ Payments can also be made for penalties 

related to Form 1065 and Form 1065B, 

Partnership returns.

Payments scheduled for withdrawal on or before 

the return due date will be considered timely. 

Form(s) 940, 941 and 944 payments cannot be 

scheduled in advance. The payment date for these 

forms will be equal to the date the return is filed.

Businesses can e-file and pay at the same time as 

new e-file options become available. Electronic 

funds withdrawal payments must be initiated at 

the time the return or form is e-filed. 

 15. What types of payments can 

taxpayers make by credit card?

Payments can be made for (1) current year and 

past due Form 1040 series returns; (2) Form 4868; 

(3) TY 2007 Form 1040-ES; (4) TY 2004 – 2006 

Form 1040 advanced payment of a determined 

deficiency; (5) current and past due Trust Fund 

Recovery Penalty; (6) current and past due Form 940 

balance due; (7) current and past due Form 941 

balance due; and (8) TY 2006 Form 944 balance due.

Past due taxes include transactions related to 

balance due notices, Installment Agreements 

and other prior tax year payments that are up to 

10 years past due.

Check with your software provider regarding 

the availability of an integrated e-file and pay by 

credit card option. 

Your clients can pay the above-named tax types by 

phone or Internet through two credit card service 

providers. Both service providers accept American 

Express® Cards, Discover® Cards, MasterCard® 

cards and Visa ®cards. The service providers charge 

a convenience fee. A confirmation number is 

provided at the end of the transaction.

Effective January 1, 2007, taxpayers can begin 

making TY 2006 credit card payments by phone or 

Internet. Integrated e-file and e-pay options begin 

January 12, 2007.

Note: The IRS does not receive or store credit 

card numbers.

16. Is there a fee charged for 

using credit cards?

The company that processes the credit card 

payments charges a convenience fee. Convenience 

fees may vary between service providers. The fee 

is a non-deductible personal expense; however, it 

is a deductible business expense. 

Taxpayers are informed of all charges and fees 

before credit card payments are authorized. This 

fee is in addition to any charges, such as interest, 

that may be assessed by the credit card issuer. 

17. How can I get more information 

on electronic payment options?

More information is available on electronic 

payment options, the types of taxes that can 

be paid electronically and important dates at 

www.irs.gov keyword: e-pay. You may visit the 

IRS e-file Electronic Payment Options page for 

details. Also, you may refer to Publication 3611, 

Electronic Payments brochure.

18. Which electronic payment 

option is best for my clients?

There are 3 electronic payment methods available:

■ Electronic Funds Withdrawal

■ Credit Card

■ EFTPS (Electronic Federal Tax Payment System)

Each method offers distinct benefits depending 

upon the taxpayer and their payment situation.

A. What types of federal individual taxes can 

be paid by EFTPS? All individual federal tax 

payments for any year can be paid using EFTPS. 

This includes the 1040 series, extensions, estimated 

payments, past due payments, penalties, and 

installment agreement payments. EFTPS is ideal 

for those individual taxpayers who make multiple 

payments throughout the year. In addition, all 

federal business taxes can be paid using EFTPS. 

B. What’s new for EFTPS? In Spring 2006, 

EFTPS launched a new and improved version 

of the popular Batch Provider Software for tax 

professionals. With this new Windows® software 

and a secure Internet connection, you can 

make up to 5,000 payments in one transaction 

for both business and individual clients, with 

payments made from their bank accounts or 

a Master Account that you maintain. It’s an 

easy to install and use software that allows 

for registration through the software. You can 

have multiple users, receive real-time payment 

synchronization with the EFTPS database, 

and download payment information to other 

programs. The free software is available for 

download from www.eftps.gov, or by calling 

EFTPS Customer Service at 1-800-945-0966.

C. What are the benefits of becoming an EFTPS 

Batch Provider? When you become an EFTPS 

Batch Provider, you can easily maintain control 

over your clients’ federal tax payments so 

you know exactly what has been paid and 

when. In addition, you receive an immediate 

acknowledgement of each payment; you can 

schedule payments in advance to avoid missing 

deadlines, and access clients’ payment history 

real-time. As a Batch Provider, you can make it 

easier on your clients when it comes to making 

tax payments, and offer them another service 

that is secure, fast and convenient. 

3
D. What are the benefits of recommending 

EFTPS to my clients? If you choose not to 

become an EFTPS Batch Provider, you should 

recommend EFTPS to your clients for their 

use. Taxpayers can make secure payments 

by Internet or phone 24 hours a day, 7 days 

a week. For each payment, they receive an 

immediate acknowledgement number that is 

their receipt; they have access to 16 months of 

their payment history online or by phone, and 

they can safely schedule payments in advance 

to avoid missing deadlines. A live Customer 

Service representative is available 24/7 for any 

questions or assistance. Taxpayers can enroll 

online at www.eftps.gov, or call EFTPS Customer 

Service at 1-800-555-4477. 

E. What do I do if I’m making payments for 

my clients but they receive the FTD Coupon 

booklet? Many times clients forget to send 

the booklet to their provider or they need to 

retain it to make other form type tax payments. 

When it is time to make the payment, the party 

without the FTD Coupon Booklet has to call or 

visit IRS to get additional coupons. This adds 

additional time to the payment process and 

could cause a penalty to be incurred. If you 

and your client were both using EFTPS to make 

payments, you wouldn’t have to worry about 

who has the coupons.

19. How can I use IRS e-file to file my 

client’s Tax Year 2006 Form 4868, 

Application for Automatic Extension 

of Time to File U.S. Individual Income 

Tax Return?

Form 4868 may be e-filed through tax preparation 

software by the original due date of the return, 

April 16, 2007. This form is an extension of time 

to file a tax return, not an extension of time to pay 

a balance due. Check with your software provider 

regarding the availability of this e-file option. 

Filing an extension electronically is 

advantageous because you get a confirmation 

of receipt of the electronic form. You can begin 

e-filing TY 2006 Form 4868 for your clients on 

January 12, 2007. If there is a balance due, an 

electronic funds withdrawal payment can be 

authorized. Credit card payments can be made 

by phone or Internet beginning January 1, 

2007. If there is a payment due, authorizing an 

electronic payment while e-filing or paying by 

credit card eliminates the need to mail Form 

4868 or a paper payment to the IRS.

20. What are my client’s options if 

the total tax cannot be paid by the 

return due date?

Taxpayers are responsible for paying the tax 

due by April 16, 2007 or they will be subject 

to penalties and interest. If your client is 

unable to pay the total tax owed by April 16, 

2007, you can electronically file Form 9465, 

Installment Agreement Request. An approved 

installment agreement allows your client 

to make a pre-determined series of partial 

payments after the return due date. 

21. Did you know IRS has two electronic 

signature methods available for 

taxpayers to sign their e-filed tax returns?

The Self-Select PIN method and the Practitioner 

PIN method are the two types of electronic 

signature methods. Both allow taxpayers to use 

a Personal Identification Number (PIN) to sign 

the return and the Declaration of Taxpayer. 

The Self-Select PIN method requires taxpayers 

to provide their Date of Birth and prior 

year original Adjusted Gross Income (AGI) 

amount or prior year PIN for use by the IRS 

to authenticate the taxpayer. However, the 

Practitioner PIN method does not require the 

taxpayer to provide their Date of Birth, prior 

year AGI amount or prior year PIN. A signature 

authorization form must be completed when 

using the Practitioner PIN method.

Regardless of the method of electronic 

signature used, taxpayers may enter their PIN 

in the electronic return; however, the ERO may 

select the PIN, or the software may generate 

the taxpayer’s PIN, if the taxpayer agrees by 

signing an IRS e-file signature authorization 

containing the PIN.

22. How do I know if the taxpayer’s 

PIN was accepted by the IRS?

Refer to the “PIN Presence Indicator” field 

(SEQ 0065) in the Acknowledgement File Key 

(ACK) Record to confirm that IRS received a 

taxpayer PIN with the return. The ACK file, 

which is sent to transmitters, also includes other 

essential information such as the “Date of Birth 

Validity Code” (SEQ 0017) and “Debt Code” (SEQ 

0120). It identifies which returns have been 

accepted, rejected or identified as duplicates. 

Corrective action may be required to satisfy 

the condition identified. See Publication 1346, 

Electronic Return File Specifications and Record 

Layouts for Individual Income Tax Returns, for 

additional information.

23. Who can use the Self-Select 

PIN method?

The Self-Select PIN method is available 

for most taxpayers who file electronically 

using tax preparation software either by 

filing through an on-line filing company or 

through a tax professional. It allows taxpayers 

to electronically sign their e-filed return by 

selecting a five-digit Personal Identification 

Number (PIN). It eliminates the requirement 

for Form 8453 in most cases, making e-filing 

returns truly paperless for most taxpayers. 

The following taxpayers are eligible to use 

the Self-Select PIN method:

■ Taxpayers who are eligible to file Form 1040, 

1040A, 1040EZ, or 1040EZ-T for Tax Year 2006. 

■ Taxpayers who did not file for Tax Year 2005, 

but have filed previously.

■ First-time filers who were 16 or older on or 

before December 31, 2006.

■ Primary taxpayers under age 16 who filed 

previously.

■ Secondary Taxpayers under age 16 who have 

filed in the immediate prior year.

■ Military personnel residing overseas with 

APO/FPO addresses. 

■ Taxpayers residing in the American 

possessions (Virgin Islands, Puerto Rico, 

American Samoa, Guam and Northern 

Marianas) or with foreign country addresses.

■ Taxpayers filing a Form 4868 (extension of 

time to file) or Form 2350 (extension of time to 

file for certain U.S. citizens living abroad).

■ Those who are filing on behalf of deceased 

taxpayers.

Your client must furnish the following 

information to validate their identity when 

using the Self-Select PIN method:

■ Name

■ Social Security Number

■ Date of Birth (D.O.B.) and

4
■ Adjusted Gross Income (AGI) from the 

originally filed Tax Year 2005 return or the Prior 

Year PIN from the Tax Year 2005 return if signed 

electronically. The AGI amount is not the amount 

from an amended tax return (Form 1040X), or 

math error correction made by IRS. 

Note: If your client did not file a tax return in 

Tax Year 2005, the taxpayer must enter zero for 

the AGI. If taxpayer filed married filing joint for 

Tax Year 2005, they should both enter the same 

amount for AGI.

For more detailed information on qualifications 

and required taxpayer information for using the 

Self-Select PIN method, refer to www.irs.gov, 

keyword PIN, and your software package.

24. Who cannot use the Self-Select 

PIN method?

The following taxpayers are not eligible to use 

the Self-Select PIN method:

■ Primary taxpayers under age 16 who have 

never filed.

■ Secondary taxpayers (spouse) under age 16 

who did not file in the immediate prior year.

■ Taxpayers who filed Forms 1040-NR or 

1040-SS for Tax Year 2005.

■ Taxpayers whose returns require attachments 

other than W-2, W-2G, or 1099-R.

■ Taxpayers required to file the following forms 

which must be attached to Form 8453, U.S. 

Individual Income Tax Declaration for an IRS e-file 

Return: Form 3115, Application for Change in 

Accounting Method; Form 3468, Computation of 

Investment Credit, if historic Structure Certificate 

is required; Form 4136, Credit for Federal Tax Paid 

on Fuels, if certificate and/or reseller statement is 

required; Form 5713, International Boycott Report;

Form 8283, Noncash Charitable Contributions,

Section A, if statement(s) required, or Section B, 

Donated Property; Form 8332, Release of Claim 

to Exemption for Child of Divorced or Separated 

Parents; Form 8858, Information Return of U.S. 

Persons with Respect to Foreign Disregarded 

Entities; Form 8864, Biodiesel and Renewable 

Diesel Fuels Credit, if Certificate and/or reseller 

statement is required; Form 8885, Health Care Tax 

Credit, and Schedule D-1, Continuation Sheet for 

Schedule D (Form 1040) (or acceptable substitute), 

if taxpayer elects not to include their transactions 

on the electronic STCGL or LTCGL records. 

25. Are there any changes for the 

Self-Select PIN method being 

implemented for Filing Season 2007?

Beginning in Filing Season 2007, when using 

the Self-Select Personal Identification Number 

(PIN) signature method taxpayers will be able to 

use their prior year PIN for authentication. The 

prior year PIN is the PIN signature taxpayers used 

to electronically sign their e-filed return for Tax 

Year 2005. The prior year PIN DOES NOT increase 

the number of shared secrets that have to be 

submitted to IRS. Taxpayers may use either their 

original prior year Adjusted Gross Income or prior 

year PIN for authentication.

IRS encourages Tax Professionals to ensure that 

their clients are aware of the AGI requirements 

for using the Self-Select PIN method. Taxpayers 

are required to enter their originally filed TY 2005 

AGI amount. This amount is not the amount from 

an amended tax return (Form 1040X), or a math 

error correction made by IRS. If filing a Married 

Filing Joint (MFJ) return, the same AGI amount 

from the prior year return should be entered 

for both taxpayers. The amount should not be 

divided between the taxpayers. The primary and 

spouse fields should contain the same figure. If 

the taxpayers are filing MFJ for the first time, they 

should both use the AGI amounts from each of 

their TY 2005 returns; in a situation like this the 

AGI fields may not contain the same amount. 

26. What should I do if my client 

is unable to return to my office to 

input his/her Self-Select PIN?

A client who uses the Self-Select PIN method 

may authorize you to input his/her PIN 

by completing Form 8879, IRS e-file 

Signature Authorization. Provide 

this form to the taxpayer 

along with a copy of the 

completed tax return, either 

personally, by U.S. mail, 

private delivery service, 

email or Internet website. 

Instruct clients to review 

their tax return for accuracy 

and to complete Part II of 

Form 8879. Clients may 

return the signed form to your office by U.S. mail, 

private delivery service, or fax. When filing a joint 

tax return, it is acceptable for one taxpayer to 

personally input their own PIN and for the spouse 

to complete Form 8879 to authorize the ERO to 

input their PIN. 

Do not submit Form 8879 to IRS or use this form 

to transmit payments to IRS. EROs must retain 

Form 8879 in their file for three years from the 

return due date, or IRS received date, whichever 

is later. Electronic storage in accordance with 

Revenue Procedure, 97-22, Retention of Books 

and Records, is acceptable. 

27. Did you know that the Practitioner 

PIN method is available to all Authorized 

IRS e-file Providers?

The Practitioner PIN method is an additional

electronic signature option for taxpayers who 

use an Authorized IRS e-file Provider (ERO) to e-file. 

Taxpayers either sign their own return electronically 

using a five-digit PIN, or authorize the ERO to sign 

the return with their (taxpayer’s) five-digit PIN. 

The PIN can be any five numbers except ALL 

zeros. Here are some frequently asked questions:

A. Do I need any specific forms to use the 

Practitioner PIN method? Taxpayers must 

complete Form 8879, IRS e-file Signature 

Authorization, for returns using the Practitioner 

PIN method. Taxpayers can either enter 

their own PIN or authorize the ERO to enter 

their (taxpayer’s) PIN for 

them when completing 

Form 8879. 

5

Continued on page 6 ▼
B. Who is eligible to use the Practitioner PIN 

method? Taxpayers who are eligible to file 

Forms 1040, 1040A, or 1040EZ are eligible to 

use the Practitioner PIN method. There is no 

age limit on who can use the Practitioner 

PIN method. 

C. Who is ineligible to use the Practitioner 

PIN method? Taxpayers required to file the 

following forms which must be attached 

to Form 8453, U.S. Individual Income Tax 

Declaration for an IRS e-file Return: Form 3115, 

Application for Change in Accounting Method; 

Form 3468, Computation of Investment Credit, 

if historic Structure Certificate is required; 

Form 4136, Credit for Federal Tax Paid on Fuels, if 

certificate and/or reseller statement is required;

Form 5713, International Boycott Report; 

Form 8283, Noncash Charitable Contributions, 

Section A, if statement(s) required, or Section B, 

Donated Property; Form 8332, Release of Claim 

to Exemption for Child of Divorced or Separated 

Parents; Form 8858, Information Return of U.S. 

Persons with Respect to Foreign Disregarded 

Entities; Form 8864, Biodiesel and Renewable 

Diesel Fuels Credit, if Certificate and/or reseller 

statement is required; Form 8885, Health Care 

Tax Credit, and Schedule D-1, Continuation 

Sheet for Schedule D (Form 1040) (or acceptable 

substitute), if taxpayer elects not to include 

their transactions on the electronic STCGL 

or LTCGL records.

D. How does the Practitioner PIN method 

benefit the ERO? The Practitioner PIN method 

offers an additional signature option for EROs 

to use in preparing and transmitting Forms 

1040/A/EZ to IRS. More specifically, it eliminates 

the Form 8453 by providing a totally paperless

e-filed return. The Date of Birth and Adjusted 

Gross Income amount or prior year PIN are not 

needed for the Practitioner PIN method.

E. What is my responsibility as an ERO using the 

Practitioner PIN method? EROs are required 

to sign Form 8879, Part III, and input their ERO 

EFIN/PIN for all returns using the Practitioner PIN 

method. The ERO EFIN/PIN consists of eleven 

digits (the first six positions are the EFIN and the 

last five are any five numbers except ALL zeros). 

EROs should confirm the identity of taxpayers 

per Publication 1345, Handbook for Authorized 

IRS e-file Providers of Individual Income Tax 

Returns, when completing Form 8879, prior to 

transmitting returns to IRS.

F. Do I mail Form 8879, IRS e-file Signature 

Authorization, to the IRS? No. Do not mail 

Form 8879 to IRS. EROs using the Practitioner 

PIN method must retain Forms 8879 for three 

years from the return due date or IRS received 

date, whichever is later. Electronic storage in 

accordance with Revenue Procedure, 97-22, 

Retention of Books and Records, is acceptable. 

G. Can an ERO use Form 8879 to submit a 

check or money order payment to IRS for an 

electronically filed return? No. Form 8879 

should not be used to transmit check or money 

order payments to IRS. We encourage use of our 

electronic payment options, such as electronic 

funds withdrawal or paying by credit card. 

See additional information in this publication 

regarding these options. For those who prefer 

to send check and money order payments for 

electronically filed returns, they should be sent 

with Form 1040-V, Payment Voucher, to the 

applicable address on that form. 

H. Will I receive an Acknowledgment that 

the Practitioner PIN method was used? 

Yes. A PIN Presence Indicator of “1” will be 

present in the Acknowledgment File Key 

Record of a return when the Practitioner PIN 

method is used. Please be sure to check the 

Acknowledgment File for the PIN Presence 

Indicator on all returns transmitted using a 

PIN signature.

I. Where can I find the Error Reject Codes 

for the Practitioner PIN method? The Error 

Reject Codes can be found in the Publication 

1345A, Filing Season Supplement for Authorized 

IRS e-file Providers.

J. Where can I find the file specifications for the 

Practitioner PIN method? The file specifications 

can be found in Publication 1346, Electronic 

Return File Specifications and Record Layouts for 

Individual Income Tax Returns for TY 2006.

28. Did you know that you may file your 

clients’ state and federal return together?

A Federal and state return can be filed at the 

same time, it’s called Federal/State filing. The 

e-file software places your client’s Federal and 

State return data in separate packets. These 

packets are transmitted to the IRS simultaneously. 

The IRS functions as an electronic post office 

for the participating state, which receives, and 

processes, for states to retrieve.

6

Publication 3452 (Rev.10-06)

Catalog Number 28381C

Department of the Treasury

Internal Revenue Service

State Only filing is also available. A State 

return may be filed with a “dummy” State Only 

Form 1040 attached. A State Only return may 

be filed in the following instances; if a state 

return was previously rejected, a state return 

input separately from Federal return, part-year 

resident state return, multiple state returns 

for one taxpayer, non-resident state returns, 

married filing separately with state, but filing 

jointly with Federal return. 

29. How does e-filing my clients’ 

Federal and state returns benefit me?

Filing your clients’ Federal and state returns 

simultaneously reduces processing time and 

costs, expands your business opportunities, and 

strengthens client relationships. At the same 

time, your clients receive more efficient service 

that includes a faster refund, an accurate return 

and taxpayer confidentiality. 

30. Where can I find more information 

on e-filing my business return?

Visit the IRS Web site at http://www.irs.gov/

efile/article/0,,id=118519,00.html and access 

technical publications and much more. 

31. Where can I find more information 

on EITC and Due Diligence? 

Tax professionals play an important role in 

helping taxpayers understand and appropriately 

claim the Earned Income Tax Credit (EITC). Now, 

practically everything you need to know about 

EITC is available right on your own computer – 

24 hours a day, 7 days a week.

■ Visit the EITC Electronic Toolkit for Tax 

Preparers at www.eitcfortaxpreparers.com

for user-friendly listings on EITC eligibility 

requirements and full compliance information.

■ Use the EITC Assistant, an interactive tool 

that lets you show your clients whether or not 

they qualify, and why. It’s available in English 

and Spanish.

■ Get current downloadable forms, publications, 

and up to date information at www.irs.gov/eitc.

 Note: The information contained in this 

 publication is subject to change.