Many CPAs, particularly those with high-volume practices, feel electronic filing is an important service, but do not view it as vital to their competitive position. CPAs in smaller practices consisting of high net worth individuals are more critical and view electronic filing as impractical for the type of tax returns they do, particularly since there are limitations on returns that can be electronically filed. They do not believe that their clients really need or want the service and therefore question the need to expend the resources to get involved. Despite these criticisms, the popularity of electronic filing continues to grow, and it is becoming more practical in the process. There are limits as to which returns qualify for electronic filing.
Electronic filing can handle easy to moderately complex returns.
More complex returns, ones with more than nine rental properties or over three businesses, do not currently qualify for electronic filing. Realistically, electronic filing still isn't for everyone. The jury is still out on the subject of balance due returns. Many practitioners surveyed said they cannot imagine clients paying a fee to transmit a return with an amount due. On the other hand, some feel there is a comfort benefit in the IRS' guarantee of acceptance or rejection notification within 48 hours of receipt.