2007 TAX SEASONERO TRAINING - MODULE 31 ERO (Transmitter) Training Module 3 Transmitting and sending Training returns

Life Cycle of an E-file ERO transmit returns to CCH EFC Processes e-file and DB info CCH Batches returns for IRS Service Centers CCH transmits returns to IRS via FTP protocol Batch is received by IRS IRS drains returns Midnight & Noon IRS checks returns for various errors Acknowledgement files are generated Ack files posted to IRS Systems & Transmitters Ack File received and processed by CCH Ack file split & distributed to EROs If return is accepted, IRS forwards the return to the State for Processing and drain on next sheet

Is Return Accepted? NO YES ERO receives & processes Ack files ERO corrects return and re-creates e-file ERO completes return processing IRS accepted returns drains IRS sends info to MasterFile for posting & refund processing Paper Check processed & printed for mailing on 15 th day Direct Deposit sent via ACH for posting on 8 th day Thursday 3 From “If accepted” box on prior sheet

2007 TAX SEASONERO TRAINING - MODULE 34 Creating the e-file from Inside the Tax Return (Done by Counselor or QR)  Log in as the appropriate user Admin can edit returns for all users  Open the completed return  Run Diagnostics Press F10 from the Forms list Click on the diagnostics icon Press Ctrl-D  Click the E-file button

2007 TAX SEASONERO TRAINING - MODULE 35 TaxWise runs diagnostics on the return  Review any errors in the Diagnostics Results window Errors found. Could not create IRS electronic return IRS Electronic return is created and stored on disk

2007 TAX SEASONERO TRAINING - MODULE 36  Must open the return to correct any e-file errors Note: If you are logged in as a specific user, you only have access to returns in that user. Make IRS e-files does not allow the user to correct e-file errors

2007 TAX SEASONERO TRAINING - MODULE 37 IRS Federal/State e-file program  State return is sent with the Federal return to the IRS  Federal return is accepted IRS makes the state e-file available for the state  Federal return is rejected State e-file is not available for the state Must file the state again when the Federal is re-sent

2007 TAX SEASONERO TRAINING - MODULE 38  Quick look at what we have covered: Life cycle of an e-file Creating an e-file from inside tax return Federal/State e-file program  What questions do you have before we take a look at transmitting e-files? Quick Recap: Electronic Files

2007 TAX SEASONERO TRAINING - MODULE 39 Things to know before you transmit e-files to CCH  Create the e-file for one or more returns  Internet connection must be active if transmitting via the Internet  Printer must be turned on and ready to print the Declaration Control Report (DCR) Note:If you are running TaxWise on multiple stand alone computers, you must designate one as the transmitting computer.

2007 TAX SEASONERO TRAINING - MODULE 310 Transmitting your Federal and State returns to the TaxWise Electronic Filing Center  Login with the appropriate user name Users assigned to the Training Group will transmit to the Training Electronic Filing Center  Open the Communications menu Will display a warning box if the user is assigned to the Training group  Select Send Federal/State Returns to… Shortcut Ctrl-S

2007 TAX SEASONERO TRAINING - MODULE 311  Transmission destination defaults to Send Returns to the Electronic Filing Center  Select the returns to send Only displays eligible e-files  Click Send Selecting returns to send to the Electronic Filing Center

2007 TAX SEASONERO TRAINING - MODULE 312  Things to look for: Refund/Balance due amount is correct No duplicate Declaration Control Numbers (DCN) Returns omitted due to batching errors (Error 189) Verify that signature documents for each return have been signed Review the Declaration Control Report before transmitting

2007 TAX SEASONERO TRAINING - MODULE 313  Common 189 errors that you see during the transmitting process:  Return was edited after e-file was created  Invalid total record count  Invalid no. statements; e-file has more than 30 statements  The errors sometimes appear in a message box prior to Taxwise displaying the DCR  Click OK on each message box  Invalid e-files are removed from the transmittal file prior to transmission.  The e-file remains on your computer Troubleshooting Tips: Error 189 – The above return has been omitted

2007 TAX SEASONERO TRAINING - MODULE 314  Possible Causes: Time and date on stand alone computers are different from transmitting computer Preparer opened the return and did not create a new e-file  Solution: Synchronize date and time on all computers Open the return and create a new e-fie Error 189: Return edited after e-file created

2007 TAX SEASONERO TRAINING - MODULE 315  Cause: The return contains a blank statement  Schedule A Detail  Interest Statement  Dividend Statement Typically caused by carrying forward the return when you have these forms loaded in Tax Form Defaults  Solution: Remove the blank stmt Error 189: Invalid Total Record Count

2007 TAX SEASONERO TRAINING - MODULE 316  Cause: Waiver amount is not entered on 2210 correctly The Penalty waived amount is zero  Solution: Enter the penalty amount you are waiving Error 189: Invalid Total Record Count

2007 TAX SEASONERO TRAINING - MODULE 317  Cause: A field in the return has the abbreviations STM Most commonly found in the local wage section of the W-2  Solution: Must use a different abbreviation Error 189: Invalid no. Statements

2007 TAX SEASONERO TRAINING - MODULE 318  Click the Printer icon  Click OK to print Click Cancel to quit the printing process  Verify the DCR printed  Close the DCR window Click the X in the upper right corner of the window Print the Declaration Control Report (DCR)

2007 TAX SEASONERO TRAINING - MODULE 319  Click Yes if the information on the DCR is correct The transmission process will begin  Click No if the information on the DCR is not correct Cancels the transmission E-files remain on your system to correct and resend Answer Yes or No to send the transmission

2007 TAX SEASONERO TRAINING - MODULE 320  Displays the first time you transmit returns Will not see on a network  Helps you avoid duplicate DCNs  Read the message  Click OK Troubleshooting Tip: The Declaration Control Warning for stand alone computers

2007 TAX SEASONERO TRAINING - MODULE 321  Automatically initiates the communication session  Communication progress will be displayed Blue progress bar  Communication results will be displayed The communication process begins after clicking Yes to verify your DCR information

2007 TAX SEASONERO TRAINING - MODULE 322  Click the Disconnect button at any time to stop the transmission  Disconnect button will change to Connect when the transmission is finished Connect button will be disabled  Click Close if session was successful Note:TaxWise erases the electronic file once the transmission is successful. Cancel the Transmission at any time

2007 TAX SEASONERO TRAINING - MODULE 323  Click the Details button Task check boxes change to detailed session logs  Click the Print Log button to print the detailed information if desired. Session log information provides detailed communication information

2007 TAX SEASONERO TRAINING - MODULE 324  Displays transmission messages  Identifies the files you are picking up  Indicates if you do not pick up any files No Mail to Toss  Indicates if your communication session was successfull Review the Session Information for transmission messages

2007 TAX SEASONERO TRAINING - MODULE 325  Click Connect to try again TaxWise will try to resend the transmission  Click Close to try again at a later time TaxWise stores the transmittal file  Will be prompted to send the transmittal file the next time you click Send Federal/State Returns to. Click Retransmit Batch to send the transmittal file Click Unbatch to remove the transmittal file Troubleshooting Tip: What should I do if my communications session is not successful?

2007 TAX SEASONERO TRAINING - MODULE 326  CCH cannot stop returns that have been electronically filed  E-files are automatically placed into a transmittal file to send to the IRS  Correct mistakes if the IRS rejects the return  File a 1040X if the IRS accepts the return Troubleshooting Tip: Can CCH stop a return that I filed by mistake? NO

2007 TAX SEASONERO TRAINING - MODULE 327  The site must submit returns to CCH as soon as possible  Must be submitted within 3 calendar days from completion of return  Place the signed Forms 8879 in numerical order by DCN  Print the DCR  Review the DCR for any errors 3189 Guidelines: Transmitting Returns

2007 TAX SEASONERO TRAINING - MODULE 328  Year round training tool  Gives preparers the opportunity to experience tax season all year  Simulates IRS acknowledgements Accepted returns Rejected returns What is the Training Electronic Filing Center?

2007 TAX SEASONERO TRAINING - MODULE 329  Requirements: Must be logged in as the Training User or any user assigned to the Training Group Must have internet access Must use TaxWise 2007 prior to December 10 th Must use TaxWise 2008 after December 10 th  Recommendations: Access to a printer to print out DCR and Acknowledgement reports Training Electronic Filing Center Requirements

2007 TAX SEASONERO TRAINING - MODULE 330  IRS Accepted acknowledgement for returns in which the primary SSN starts with an even number (0, 2, 4, 6, 8)  IRS Rejected acknowledgement for returns in which the primary SSN starts with an odd number (1, 3, 5, 7, 9) » Rejects codes are random and not related to the return information » Rejected returns will never be accepted because the primary SSN is an odd number Experience both Accepted and Rejected returns

2007 TAX SEASONERO TRAINING - MODULE 331 The last 6 digits of the Social Security Number must be the same as the EFIN used to register your software » TaxWise displays a status box indicating the correct 6 digits to use The last 6 digits of any EIN must be the same as the EFIN used to register your software Troubleshooting Tip: I receive an error message when I enter a SSN or EIN

2007 TAX SEASONERO TRAINING - MODULE 332 Login as the Training User or any user assigned to the Training Group Create a return Create an e-file Open the Communications menu Select Send Federal/State Returns Click Yes on the confirmation box Transmitting to the Training Electronic Filing Center

2007 TAX SEASONERO TRAINING - MODULE 333  In this lesson we have covered:  The life cycle of an e-file  How to create an e-file  Sending returns to CCH  Processing Acknowledgements  Correcting rejected returns  The Training Electronic Filing Center  What questions do you have? Lesson Summary: Transmitting