Sigma Tax Pro clarifies information on state electronic filing requirement that may impact tax preparers

The “10 Business Day Rule” requires tax professionals to download and apply software product updates if they try to e-file 10 or more business days after production release.  This requirement is aimed at all software companies with the intention of decreasing error rates on returns that have not been filed with the most recent updates. The new rule will also help strengthen uniformity across the entire professional tax software industry.

Individual states do have the option of choosing to implement the new rule or not.  Presently, 33 states have implemented the new rule with the expectation of more to come.  States that have implemented the rule as of now include: Delaware, the District of Columbia, Georgia, Iowa, Illinois, Idaho, Kentucky, Kansas, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, North Carolina, North Dakota, New Mexico, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, West Virginia, and Wisconsin.

Mitch Elbarki, CEO of Sigma Tax Pro advises, “Tax Professionals working in states that have adopted this new rule need to proactively restructure their tax office workflow immediately; this will only help them save time and avoid any possible hassle later on…in simple terms, tax pros need to create returns and e-file them within 10 business days of any product release/update.  If 10 business days have expired, and new updates have not been downloaded and applied, then returns created & e-filed under these circumstances will be rejected.”

Some professional tax software vendors have been proactive in helping tax preparers safeguard themselves from potential rejections by adding useful features within the software.  These filters provide error messages and/or warnings that inform tax preparers if a return is approaching expiration or if it has expired altogether.  Elbarki also advises, “When shopping for software, tax professionals affected by this new rule should reach out to software providers and inquire as to which filters are available, if any, to help mitigate any potential rejections.”

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About Sigma Tax Pro

Sigma Tax Pro is dedicated to providing professional tax preparation software solutions at the lowest prices available. Our mission is to enable tax preparers to maximize their revenue and increase client satisfaction. We understand our client’s needs and aim to provide premium customer service and committed tax preparation support. Our software products are powered by the leading developers of tax preparation software. The volume discounts we qualify for enable us to provide these software products at considerably lower prices than the industry standard. We then pass these savings on to our clients and offer numerous incentives and rebates that can take their tax preparation business to new levels. Sigma Tax Pro knows tax preparation and we power tax professionals.