Virginia iFile System Status

The VSCPA wants to ensure practitioners are aware of upgrades made to the iFile system by the Virginia Department of Taxation (TAX) for individuals that require a two-factor authentication and the concerns it is causing. We understand that many taxpayers – particularly senior citizens – are struggling with this update.  

Because accessing an individual's Virginia tax account now requires two-factor authentication, the client will receive the authentication codes and will exclude the CPA from the loop. Therefore, a CPA or tax preparer can no longer access a client's account without the client being involved in the process, which may be cumbersome for clients of the older generation. Since CPAs or other tax preparers often process quarterly estimated tax payments for clients and perform other account services, the two-factor authentication will now make that process more time-consuming.  Before the next quarterly payment is due, the CPA or tax preparer may want to contact their client to discuss this new arrangement.  

TAX has informed us that there are no plans to allow a tax preparer with a POA to have access. Their suggestion was for the tax preparers to use eForms, which is cumbersome and time consuming. They said they considered the impact to the tax preparer when implementing this and basically decided that they needed to move forward with the two-factor authentication process regardless. The VSCPA agrees that a system like the business iFile system which allows tax preparers to have access would be an improvement and have conveyed that to our partners at TAX and will continue to do so as opportunities arise.