What is tax software for CPA firms?
Tax software for CPA firms is professional preparation software that a firm uses to prepare, review and e-file federal and state returns for many clients, covering individual Form 1040, corporate Form 1120 and 1120-S, partnership Form 1065 and trust Form 1041. Practice tools handle the client portal, workflow and billing around it.
Also calledProfessional tax softwareTax preparation software for CPAs
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- IRS e-file mandate
- 11 or more covered returns
- E-file ID
- EFIN from the IRS
- Pricing models
- Per return or unlimited
Tax preparation products and practice tools
Intuit sells three products. ProConnect Tax is cloud-based and covers the most common forms, including 1040, 1041, 1120, 1120-S and 1065. Lacerte Tax and ProSeries Tax are desktop software with hosting as a monthly add-on; Lacerte has more than 7,200 forms, and ProSeries uses forms-based screens. All three are sold pay-per-return or unlimited. Thomson Reuters UltraTax CS covers 1040, 1041, 1120, 1120-S, 1065, 706, 709, 990 and 5500 returns, more than 370 state and local e-file returns, and works with Accounting CS and Practice CS. Drake Tax lists more than 4,300 federal and state forms with federal and state e-file: Drake Tax Pro covers unlimited individual and business returns at $3,295 list, Drake Tax 1040 covers unlimited individual returns at $2,445 list with business returns at $74.99 each, and Pay-Per-Return starts at $379.99 for 10 individual returns. To e-file for clients, a firm applies to the IRS as an Electronic Return Originator and receives an EFIN. Firms that expect to file 11 or more individual, trust or estate returns in a calendar year must e-file them. Practice platforms such as Canopy, from $74 per user a month billed annually, add the client portal, workflow, billing and IRS transcripts.
Common questions
What tax software do CPA firms use?+
Professional products such as Intuit ProConnect Tax, Lacerte and ProSeries, Thomson Reuters UltraTax CS, CCH Axcess Tax and Drake Tax, alongside practice platforms such as Canopy and TaxDome for client work.
Do CPA firms have to e-file returns?+
Yes, once a firm expects to file 11 or more covered returns in a calendar year. Covered returns are individual, trust and estate income tax returns such as Form 1040 and 1041, counted across the whole firm.
How is professional tax software priced?+
Per return or as an unlimited package. Drake Tax Pay-Per-Return starts at $379.99 for 10 individual returns, and Drake Tax Pro costs $3,295 list for unlimited returns. Intuit offers pay-per-return or unlimited on all three of its products.
What does a firm need to e-file client returns?+
An IRS e-Services account and an approved e-file application as an Electronic Return Originator. The IRS then issues an Electronic Filing Identification Number (EFIN), which takes up to 45 days.
Practice software for CPA tax work
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