User's Manual

Taxsoftware.com is the easiest, most secure, and most complete tax e-filing system available—and it’s the least expensive! Taxsoftware.com is tax preparation software designed by programmers who helped the IRS develop the standards for e-filing, and it’s been IRS tested and approved.

Taxsoftware.com will walk you through your tax return. It prompts you for every necessary input, guides you to each required form, does all the calculations, and flags any errors—before your return gets to the IRS. It makes e-filing easy and error-free. All you do is type in numbers.

Anyone can use Taxsoftware.com—individual or professional, personal or business—whether you’re filing one return or thousands. Because you can get your updates online, you don’t have to worry about getting the latest software update, patch, or fix; it’s up-to-date all the time, every time, no matter when you log in. And Taxsoftware.com can transmit your tax return directly to the IRS, so you don’t even have to print it.

To keep your tax information safe—and make accessing your return easier—Taxsoftware.com uses digital ID certificates, or UPIDs, to identify users; there are no usernames or passwords to remember or have stolen. You can use any digital ID you already have or you can get one from Taxsoftware.com. Follow the instructions in Using Taxsoftware.com to get your digital ID.

Chapter 2: E-services

Taxsoftware.com e-services is a product designed for professionals looking for the easiest, fastest, most secure—and least expensive—system for tax preparation around. Taxsoftware.com offers all the forms and schedules you need—with none of the worry about software package updates. Because the updates come online, you don’t have to worry about getting the latest software patch or fix; it’s up-to-date all the time, every time, no matter when you log in.

E-service means paperless tax returns. No more Forms 8453! When you sign up for Taxsoftware.com e-services, you can use a practitioner PIN method to e-file. This eliminates the Form 8453 requirements for all forms. Normally, you need to fax a Form 8453S for Form 1120s, Form 8453C for Form 1120, or Form 8453EO for Form 1120POL, and mail a Form 8453P for Form 1065, Form 8453OL for Form 1040, or Form 8453F for Form 1041. With Taxsoftware.com e-services you sign up for a practioner PIN and just enter your EFIN, PTIN, and PIN when you e-file. Then no Form 8453 is required. For more information see: http://www.irs.gov/efile/article/0,,id=119998,00.html#Pract1

After you e-file Information Returns (Federal Information Returns) tax return you get Taxpayer Identification Number (TIN) matching. TIN matching is a pre-filing service offered to payers and/or authorized agents who submit any of six information returns subject to backup withholding (Forms 1099-B, INT, DIV, OID, PATR, and MISC). With Interactive TIN Matching authorized payers can match up to 25 payee TIN and name combinations against IRS records prior to submitting an information return. In order to participate in TIN matching, payers must be listed in the IRS Payer Account File (PAF) database. If your firm has not filed information returns with the IRS in one of the past two tax years, this application will not be available to you at this time.

After you e-file 100 IRS Form 1040/1040A/1040EZ tax returns next year, you will get access to the other IRS e-services products, such as:

Disclosure Authorization: Eligible tax professionals may complete authorization forms, view and modify existing forms, and receive acknowledgement of accepted submissions immediately - all online. Disclosure authorization allows tax professionals to electronically submit Form 2848, Power of Attorney and Declaration of Representative, and Form 8821, Tax Information Authorization. This e-service expedites processing and issues a real-time acknowledgment of accepted submissions.

Electronic Account Resolution: Electronic account resolution allows tax professionals to expedite closure on clients’ account problems by electronically sending/receiving account-related inquiries. Tax professionals may inquire about individual or business account problems, refunds, installment agreements, missing payments, or notices. Tax professionals must have a power of attorney on file before accessing a client’s account. The IRS response will be delivered to an electronic secure mailbox within 72 hours.

Transcript Delivery System: Use the transcript delivery system to request tax return transcripts, account transcripts, and a record of account for your individual and business taxpayers. Resolve your clients need for account information quickly in a secure, online session. Tax professionals must have authorization on file with the IRS before accessing a client's account.

Who Should Use E-services

The Taxsoftware.com e-services product is designed for tax preparers who prepare 100 returns or more per tax year. If you prepare fewer than 100 tax returns per year, use the Pay Per Return Preparer pricing package.

Taxsoftware.com transmits returns directly to the IRS—no need to print pages of paper. And when you sign up for Taxsoftware.com e-services, you can use the IRS’s practitioner PIN method to e-file. That means no more Forms 8453—a truly paperless return!

To secure your data—and the confidence of your clients—Taxsoftware.com uses digital ID certificates, or UPIDs, to identify users; there are no usernames or passwords to remember or have stolen. You can use any digital ID you already have or you can get one from Taxsoftware.com. Follow the instructions in Using Taxsoftware.com to secure your UPID.

If you already have your IRS-designated EFIN (electronic filing identification number) and PTIN (preparer tax identification number), you’re ready to go. If not, sign up with the IRS for e-services at http://www.irs.gov/taxpros/article/0,,id=109646,00.html.

Electronic Signatures with Taxsoftware.com e-services

All tax returns submitted to the IRS—whether on paper or electronically—must be signed. The advantage to using Taxsoftware.com e-services is that you can sign electronically and do away entirely with the signed paper, Form 8453, that must accompany other electronic returns.

Taxpayers filing electronically must sign both the return and the Declaration of Taxpayer—the form that authorizes submission of the return before the return is actually transmitted. Taxsoftware.com offers users the chance to use the IRS’s Practitioner PIN method of signing both forms electronically. A taxpayer who has a Form 8878 or 8879, IRS e-file Signature Authorizations, on file with an ERO has authorized the ERO to sign forms electronically for the taxpayer. Taxsoftware.com allows EROs to enter the appropriate PINs on the return to make any further paper trail unnecessary. The ERO must also sign the return with a PIN and must retain copies of the taxpayers’ Forms 8878 or 8879 for three years.

The following taxpayers are ineligible to sign individual income tax returns with an electronic signature:

1. Taxpayers who filed Form 1040-NR or 1040-SS the prior tax year; and
2. Taxpayers required to file the following forms, which must be attached to Form 8453, U.S. Individual Income Tax Declaration for an IRS e-file Return or Form 8453 OL, U.S. Individual Income Tax Declaration for an IRS e-file Online Return:

1. Form 3115, Application for Change in Accounting Method;

2. Form 3468, Investment Credit, Historic Structure Certificate;

3. Form 5713, International Boycott Report;

4. Form 8283, Non-Cash Charitable Contribution, Section B Appraisal Summary;

5. Form 8332, Release of Claim to Exemption for Children of Divorced or Separated Parents;

6. Form 8858, Information Return of U.S. Persons With Respect To Foreign Disregarded Entities; or

7. Form 8885, Health Coverage Tax Credit.

If the taxpayer is ineligible to use an electronic signature or chooses not to do so, a signature on a paper declaration must be completed.

RALs with Taxsoftware.com

Taxsoftware.com e-services is an online web site product designed for professionals looking for

Taxsoftware.com e-services give professionals a chance to offer their clients easy money: quick, low-cost RALs from a high-service bank. Taxsoftware.com has partnered with Refund-advantage. User's must sign up directly with the bank entity to process your bank products through Taxsoftware.com. Clients get their money fast, with easy-to-use check cards—no long-standing bank accounts necessary for check cashing; no giant fees associated with non-standard check cashing. And each time your clients use their money, you get paid as well. See step-by-step instructions for Refund-Advantage bank products from our web site.

When you prepare the taxpayer's tax return you give the taxpayer an ATM Cash Connection card. When the taxpayer receives a refund your tax preparation fees can be automatically deducted from the refund and deposited into your bank account. Then the balance of the refund can be deposited onto the ATM Cash Connection Card. Taxpayers can then go to any ATM machine and withdraw the refund and no check cashing-in required!!

How to Sign Up for E-services

1. First you need to sign up for the IRS e-services and get an EFIN and PTIN.

EFIN stands for Electronic Filing Identification number. To apply for that you need to click on the link below and select Registration Services. Then complete the application and wait for your EFIN to come in the mail within 28 days.

PTIN stands for Preparer Tax Identification Number and can be used for a preparer instead of a Social Security Number. A PTIN is not enough for a paid preparer to e-file.

Click here to link to the IRS e-services page and apply for a PTIN and/or EFIN.

2. You need to get a digital ID to verify your identify. You cannot use Taxsoftware.com e-services or paperless e-filing until you get a digital ID. You will need to install the same digital ID on each computer you have that will use the Taxsoftware.com e-services package. The digital ID is used to verify your identity before each time you e-file your tax returns. This security system ensures that no one can use your account improperly.

We will give you a free digital ID after you get your e-services account.

3. All that's left to do is activate for the Taxsoftware.com e-services package.

Follow the instructions below to activate your e-services account

Getting your Digital Certificate

From the e-services web page, click on the “Buy Now” graphic.

This will take you to the “Taxsoftware.com E-Mail Verification” link, shown below. You will be asked to enter your e-mail address for verification. Enter your e-mail address, then click on “Submit.” Then please close your web browser.

You will receive a verification e-mail with instructions on how to proceed. It will contain a multi-digit UPID necessary to secure your account. After you receive this UPID, please return to the web site: https://www.Taxsoftware.com.com/certsrv/get_cert.asp.

You will be prompted to cut and paste the UPID from your verification e-mail into the box provided. Then click on “Submit.”

The next page will request identifying information, as shown below. Please fill in the information for your Taxsoftware.com user certificate. The certificate is a digital ID that is used to identify you. No username or password is required when using Taxsoftware.com e-services.

Click on “submit” after you have filled in the required information.

To install your certificate, you will click through a series of prompts. You must answer “Yes” to the security questions.

Click on “yes” to request a certificate now, as shown below.

When the certificate you requested is issued, click on “Install this certificate” to install the digital ID onto your computer.

Click on “Yes” to add the certificates now, as shown below.

Click on “Yes” to install a certificate from Taxsoftware.com.

You will receive a prompt that your certificate has been successfully installed. After the certificate is installed, you can click on “Continue” to pay for your e-services account.

Activating your E-services Account

Follow the steps below to purchase/activate e-services online.

Every time you access the e-services management web site to purchase services, you will be prompted to present your digital ID/user certificate. Select your certificate and click on “OK” to present your digital ID to Taxsoftware.com.

You will see the Taxsoftware.com e-services Payment Page, shown below. This page will reflect the status of your e-services account. Any payments previously made will be listed on this web page.

Click on “Update Profile” to fill in your EFIN and PTIN information. Your EFIN and PTIN were assigned by the IRS when you first e-filed.

The next page is the New Company for e-services page, shown below. You must enter your correct EFIN and PTIN information on this web page.

You will only be able to e-file tax returns with Taxsoftware.com if your EFIN, PTIN, and digital ID all match. This protects your account from misuse. No one else will be able to e-file any tax returns under your EFIN.

Click on “Continue” after you have updated all of your information.

To purchase a new e-services package, as shown below, enter 2000 for the number of individual tax returns to receive the special price. Then click on “Update Price.” You may also purchase business tax returns from this web page by entering the number of business tax returns desired and clicking on “Update Price.”

After you have updated the price, the total amount for your purchase is shown. You can enter your payment information and click on “Pay” to pay for the returns.

You can return to the e-services management web page at any time to check on your purchases or see any payments made on your account. The e-services management web page can be accessed by clicking on the “Buy Now” graphic on the e-services web page at any time.

If you have already paid for you account, please go to "Activate e-services now."

Chapter 3: Simplified Version – Online

Please go to www.taxsoftware.com and click on the “Click here to start your tax return” bar.

Then click on the ACCEPT button and show on the next figure.

Click on the NEW button to start a tax return.

Enter your data on the first screen.

Scroll down to select what type of form you need to do and tax year.

Click on NEXT to continue entering your data throughout the entire tax return.

New pages will show up according to your previous answers.

Chapter 4: Simplified Version – Offline

1. To use our Simplified version offline, Tax software.com requires that you first install Microsoft.Net. Click on this link.

Microsoft .NET J# 2.0 2nd Edition

For 64 bit users: Microsoft .NET J# 2.0 x64 2nd Edition

2. Select RUN on this screen.

3. You will see this screen.

4. Click on CONTINUE on this screen.

5. Click on RUN on this screen.

6. Click on NEXT.

Follow the instructions below next to complete the installation.

1. Click on this link to download Taxsoftware.com

TaxsoftwareOffline2007.msi Version 1.1.229 or go to http://www.taxsoftware.com/btax2007/TaxsoftwareOffline2007.msi

2. You will see the screen below pop up. Please select RUN.

3. Click on NEXT.

4. Please read the License Agreement and check "I Agree" before you continue.

Then click on NEXT.

5. Select "Everyone" Click on NEXT.

6. Click on NEXT.

7. Click on CLOSE. Now you have Taxsoftware.com Offline installed in your computer.

Accessing your Taxsoftware.com Offline Software.

1. From your computer, go to your Start feature at the bottom left of your screen.

Select "All Programs" and then select Taxsoftware.com.

2. Two screens will pop up on your desktop.

On this screen:

Click on NEW to start a new return.

Click on OPEN to an existing return.

Click on SAVE AS to save the file in a specific directory, and a specific name you chose.

Click on SAVE to automatically save your return.

Click on PAY/PRINT to pay for your return. After you pay, the button will say PRINT, and will be used to print your entire return.

Click on EXIT/SAVE to close your software and save all your data.

Click on CHECK FOR UPDATES to come to this page.

Chapter 5: Using the Simplified Version – Online and Offline

The following instructions are common for both Online and Offline Versions of Simplified Taxsoftware.com

1. Start entering all your data on the screens. Click on NEXT every time you want to move to another screen.

On this screen:

Click on the PREV button to go back to the previous screen.

Click on the NEXT button to move to the next screen.

Click on HOME to go back to the first page (Shown to the right)

Click on HELP to see a PDF format help file.

2. Click on PAY/PRINT to pay for your return. After you pay, the button will say PRINT, and will be used to print your entire return.

A credit card input screen will pop up so you can enter the payment information.

3. Enter your data and click on NEXT. Repeat this step until you go through all the pages in your return.

4. To file a state return, just select which state you want on this page and click on NEXT.

5. Then enter all the information as appropriate. Click on NEXT.

6. Click on the E-FILE button to e-file your return.

7. Confirm your transmission on this screen.

8. The last page you will see will be the REVIEW page.

You can get to this screen at any time by clicking on the REVIEW button.

The pages listed in blue are correct.

The pages listed in red have an error.

The pages listed in black, have no been visited yet.

IMPORTANT: To uninstall Taxsoftware.com Offline, just use your "Add and Remove" or "Programs and Features" command inside your computer's CONTROL PANEL.

Chapter 6: Full Version of Taxsoftware.com Online

To start a return:

1. Start by going to http://www.taxsoftware.com

2. Click on the bar that says “Click here to start your tax return;”

3. Click on ACCEPT;

4. Click on NEW at the top of the page;

5. Fill in the name and address web page;

6. Select the form and the tax year;

8. Click on NEXT and continue and complete all the pages on the return;

At the top or bottom of every web page in the tax return interview there is a series of buttons, as shown below.

<Prev - Click on “Prev” to go back to the previous web page in the interview process.

Next> - Click on “Next” to go to the next web page in the interview process. You can go to the next web page in the interview process even if you have an error or have not completed the current web page.

Start - Click on “Start” to go back to the start page.

Review - Click on “Review” to see a review of your tax return and navigate quickly around your tax return.

Pay/Print - Click on “Pay/Print” and the price for the tax return will be deducted from your Taxsoftware.com e-services account. If you do not have an E-services account, you can pay using a credit card.

If you have already paid, you can click on “Print” to print just the tax form you are currently working on.

Help – Click on “Help” to access tax research. Tax research specific to what you are working on will show up any time you click this button.

New Stmt – Click on “New Stmt” to add a statement that is permitted by IRS E-File.

From time to time you may see the “New Stmt” button. Every statement permitted by IRS E-File will have a button. If a statement is not supported by IRS E-File, then no button will show up.

On each web page there may be check boxes such as “Check if you received a Form W-2.” When you check these boxes, the forms will be added to the interview.

If you always check the correct boxes and click on “Next,” you will be taken to every form and worksheet required for your tax return based on your answers.

You can always click on “Prev” and change your answers, and then click “Next” and the form and worksheets in the tax return will change.

At any time you can select any form from the drop down at the top of the web page, as shown below. You will jump to the form selected and stop going through the interview.

Click on the “Review” button at any time to see the review or Summary Page, as shown below. On the review page you will see a list of web pages in the tax return. This list is determined by your answers to any questions in the process, up to this point. The list of web pages may change if you change your answers.

A check in green indicates that the web page has no potential E-File errors.

An X in red indicates that the web page has a potential E-File error.

No X and no check indicates that the web page is incomplete and you still need to fill it in.

If you click on any web page in the list, you will go directly to that web page and avoid the interview order. You can fill in the interview in any order that you want.

There are five buttons on the Summary Page, as shown below.

Pay/Print All – Click on “Pay/Print All” to print the entire tax return for print copies and mail filing. The worksheets not required by the IRS will not be printed.

Errors – Click on “Errors” to show results from the acknowledgement file you last got back from the IRS after you e-filed your tax return.

Start – Click on “Start” to go directly to the start page.

Review – Click on “Review” to refresh or update the current list of web pages.

E-file – Click on “E-file” to transmit your return electronically.

Worksheets

1. You can select any worksheet from the drop down at the top of the review or Summary Page to see the calculations on the worksheet.

2. To print a worksheet, click on the worksheet web page from the review web page. Once on the worksheet web page, click on “Print” to get just the worksheet.

To Edit:

1. From the same computer where you entered your data click on the bar that says “Click here to do your tax return;”

2. Click on ACCEPT;

3. Click on the file inside the gray box, and then click on the EDIT icon at the top.

4. You can edit your return as many times as you want, until you are sure it is correct. Make sure you print and check it before you e-file. There is no limit of time for you to have access to you return, but make sure you follow the IRS deadlines.

To print:

1. From the same computer where you entered your data go to the page shown above "Taxsoftware.com Start Web Page".

2. Click on the PRINT ALL button to print you entire tax return.

or click on EDIT and select the specific form you want to print from the drop down box at the top of the page

and click on PRINT to print just that form.

3. When you are using ACROBAT, make sure the ANNOTATIONS or COMMENTS box is checked on the print dialog screen. Depending on the version you have, it could say “Print documents and annotations,” or similar language. Make sure you are using Acrobat 5.05 or later. Earlier versions of Acrobat may not print correctly. If you have a color printer, make sure you have blue color, or set it to print blank only. For more information please see: http://www.taxsoft.com/adobeprinterdialog.html

4. You can print your return as many times as you want, until you are sure it is correct. Make sure you print and check it before you e-file. There is no limit of time for you to have access to you return, but make sure you follow the IRS deadlines.

To e-file:

1. From the same computer where you entered your data go to the page shown above "Taxsoftware.com Start Web Page".

2. Click on the file, then press the EFILE button. The return is not e-filed until you press the EFILE button.

3. Then you must press the CONFIRM button. If the CONFIRM button does not show up you can manually launch the web page from Internet Explorer with the Browse button to find the file c:\btax\senddata.html If there is a balance due press the "Click to Pay".

4. You will receive an email within three business days indicating your forms have been ACCEPTED.

5. If you do not receive this email, your forms have NOT been E-Filed. The E-Mail will contain and acknowledgement file #. You will need this number for proof of your E-File if you need to later contact the IRS.

6. If there is any problems with your return or the IRS requires additional information you will receive an email indicating the file was REJECTED.

7. Then you need to return to the web site and fix any errors. You can see your IRS errors on the REVIEW screen by pressing the ERRORS button

8. Then you must print and sign, and mail Form 8453 to the IRS.

To print Form 8453, please click on NEXT until you reach the Form 8453 page, and then click on PRINT.

Chapter 8: Technical Specifications

Taxsoftware.com won’t tax your computer. If you can access the web site, you can file the returns. Following are the system and browser requirements. Microsoft Java™ yields best performance.

System Requirements

Microsoft Internet Explorer 4 or later

Microsoft Java™ or latest Sun Java™

Netscape 7.0 or later

With Sun Java™ 1.4 or later

To Print:

Adobe Acrobat Reader 5.05 or later

Also—you’ll need to add Taxsoftware.com to your list of Trusted Sites to print

Browser Requirements

Microsoft Net J Browser Controls version 1.1 or later

Chapter 9: Who Can E-File?

Individual taxpayers looking to e-file must be filing tax returns with prescribed due dates in the current year. An individual income tax return cannot be electronically filed after October 15^th following the close of the tax year, even if the taxpayer has been granted an extension to file a return beyond that date. If October 15^th falls on a Saturday, Sunday, or legal holiday, the due date is the next succeeding day that is not a Saturday, Sunday, or legal holiday.

State individual income tax returns that are filed as part of federal/state e-file become part of the electronically transmitted data. States often require the submission of paper documents to complete the return, but they are separate from paper documents for federal returns. EROs should process state paper documents according to applicable state rules.

Ineligible Returns

The following individual income tax returns and related return conditions cannot be processed using IRS e-file:

Other than current year tax returns;

Tax returns with fiscal year tax periods;

Amended tax returns;

Returns containing forms or schedules that cannot be processed by IRS e-file. Publication 1345A, Filing Season Supplement for Authorized IRS e-file Providers of Individual Income Tax Returns, published in December of each year, contains a list of accepted forms and schedules for the current tax year;

Tax returns with TINs within the range of 900-00-0000 through 999-99-9999. Exception: Adopted Taxpayer Identification Numbers (ATIN) and Individual Taxpayer Identification Numbers (ITIN) may fall within the range above. Valid ATINs contain the digits 93 in the fourth and fifth positions. Valid ITINs contain digits within a range of 70 through 80 in the fourth and fifth digits; and

Tax returns with rare or unusual processing conditions or that exceed the specifications for returns allowable in IRS e-file. These conditions change from year to year, and Taxsoftware.com will alert you to these conditions if they arise.

Chapter 10: What Is an ERO?

The IRS does not have the capability to accept millions of returns submitted from millions of different electronic sources. Individuals and professional tax preparers may, however, submit returns to Taxsoftware.com, which is an Authorized IRS e-file Provider and is authorized to transmit returns directly to the IRS.

The IRS considers the person or entity that originates the electronic submission of returns it either prepares for taxpayers or collects from taxpayers who want to e-file to be the ERO—electronic return originator. The ERO may or may not be the individual taxpayer named on the return or the paid preparer of the return. With Taxsoftware.com, the ERO is the person who accesses Taxsoftware.com and completes returns with the Taxsoftware.com program. The ERO submits the returns to Taxsoftware.com, and Taxsoftware.com transmits the returns to the IRS.

An ERO that has merely collected returns for submission to a transmitter will become a tax