Who uses TAXES.NET?
TAXES.NET is used by the business to file employer taxes and used by the third party
service bureau to file individual income tax. Employers, payroll providers,
Electronic Return Originators (EROs) or any business that files employers and individual
taxes, can use TAXES.NET to file taxes using the Internet.
Business Filing Employer Taxes
Employers and Payroll providers are now able to electronically file all types of
business taxes to government agencies using the Internet. Federal and State payroll
withholding, State sales tax, other State taxes such as unemployment, motor fuel, gaming,
severance and liquor taxes can now be submitted to the appropriate government
agencies. State and Federal government programs such as licenses and permits and new
hire reporting can also be handled in the same manner. All this can be done with
virtually no paper work changing hand. There is one requirement though, the
government agency receiving the tax has to be able to receive the tax form or document
electronically. Many states are still in the process of creating the infrastructure
to process business taxes electronically.
By using specific forms provided on TAXES.NET Internet Web site, the tax information is
sent directly to the TAXES.NET server. TAXES.NET verifies tax/form information and
checks for errors and omissions. Any errors may be corrected by the tax filer and
the corrected tax form resubmitted to TAXES.NET. Once the completed tax return is
received, TAXES.NET will convert the tax data to EDI or electronic data format. Some
states support electronic filing but in a proprietary format, not EDI. Then
TAXES.NET will transmit the electronic formatted file to the government agency for
approval and acceptance. If the return is rejected for what ever reason by the
government agency, the status will be presented on a web page back to the tax filer.
Tracking of the tax forms along with acceptance/rejection status is provided for by
TAXES.NET web page . Security has
received ultimate attention in all facets of this task including:
- Secure on-line area for input and review of status
- Using Standard Secure Layer (SSL) Private/Public key 128 Bit RSA to encrypt the data
- Validity of the data
- Client/Host authentication
Third Party Service Bureaus Electronically File Individual Tax Returns
Electronic Return Originators (EROs) can now file individual income
taxes using the Internet. EROs are entities, third party service bureaus,
that prepare or receive prepared federal and state individual income tax returns to be
filed electronically with appropriate government tax authority. The ERO using TAXES.NET
and 1040 Third Party Filing server software hosted on
the EnterFrame server, retrieves the income tax return
in electronic format (IRS), applies the appropriate header information for filing to the
feds and/or the state, submits the IRS formatted to thee appropriate tax agency, processes
the acknowledgement returned from the government agency and makes available the status to
the ERO via a web page.
Typical EROs received IRS formatted returns from tax professionals who
prepare returns for the individual. The tax professional may also be the ERO.
Via TAXES.NET web page, the tax preparer will retrieve the IRS formatted file from
the tax preparation software program. Most tax professional software packages
place the federal and state return in IRS format. The IRS file is then submitted to
the TAXES.NET server. The TAXES.NET server along with the 1040 Third Party Filing
server will merge the IRS file with other queued tax returns, place the appropriated
header information on the block of IRS files and electronically transmit the returns to
the appropriate government tax agency. The return(s) will either be rejected or
accepted by the the tax agency. In either case the status of the return will made
available via the TAXES.NET web page. One of the most important features of
TAXES.NET is the tracking of the return. The ERO and his client, the individual filing the
return, can access the return status by using a password and ID unique to the ERO and
individual.
Making the return status available in real-time via a web page saves
numerous phone calls from the tax payer to the ERO. Other important features
include:
- Real-time processing of the return - most electronic filing software
batch the returns.
- No long distance phone calls to file the returns - use the Internet
- Security features include data encryption, host/client authentication,
data validity
- Support via online help, e-mail, context sensitive help
- No software to install on the PC
- The ERO can set up an Extranet with clients sharing private information
- Track the returns at all stages
