E-Filing Legislation: How Will it Affect You?

Because of Gov. Mark Warner's approval of H.B. 1159, e-filing legislation, you may have to change the way you file taxes in the next year or two. Preparers who qualify under this statute will have the option of either e-filing or using a paper return that has a 2D barcode feature, which is already used in most tax preparation software.

If you filed 200 tax returns or more in 2004, you must follow e-filing regulations for the 2005 filing season and every year thereafter.

If you filed 100 tax returns or more in 2005, you must follow e-filing regulations for the 2006 filing season and every year thereafter.

The VSCPA actively opposed H.B. 1159 in its original form, which would have required tax preparers who file more than 100 returns to file online or face a $5 penalty for each return. After the VSCPA met with General Assembly members to discuss concerns, the legislation language was changed to the current requirements, and the penalty portion was removed entirely. Read the VSCPA's statement on H.B. 1159.

The compromise legislation also requires Virginia Tax Commissioner Kenneth Thorsen to respond to a hardship waiver request within 45 days. The VSCPA and volunteering members successfully compromised with legislators and Virginia Department of Taxation (TAX) officials to develop legislation that allowed for advances in technology yet protected members and their clients from undue burdens.

Information from TAX is available here.

If you have any questions, e-mail VSCPA Government Affairs Director Erin Collins or call her at (800) 733-8272.