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E-File Waiver System Could Use Some Tweaks, Amish Preparer Says

SEP. 10, 2021

E-File Waiver System Could Use Some Tweaks, Amish Preparer Says

DATED SEP. 10, 2021
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09/10/2021

Dear Sir:

I am commenting on Proposed Reg-102951-16, This affects Regs 301.6011, 301.6012, 1.6037, 1.6045, 1.6050 and more.

My question is: Should the e-file waiver system accomodate exceptions for religious conscience?

I am an Amish tax accountant. The Amish typically shun technology to the best of their ability in the times they live in. Local church regulations vary, but generally using the Internet is taboo . . . denying ungodliness and worldly lusts, we should live soberly, righteously, and godly, in this present world; (Titus 2:12)

I do have a concern about the e-file threshold lowering to 100, and then to 10, I am commenting specifically about the Amish who also utilize the services of an Amish tax accountant, I believe these taxpayers will be adversely affected in that they need to either be outsourced to another accountant, or their entire services must be taken to a non-Amish accountant.

One reason my Amish clients come to me for my services, is that I understand their culture and values better than an outsider. For example, many Amish refused to accept the economic stimulus payments. We try to avoid government handouts. I had many clients requesting advice on the economic stimulus payments, and they felt more comfortable discussing their options with a tax accountant that shared their concerns about it as well.

Most Amish businesses are smaller businesses, and the 250 return threshold has not affected them. In some cases, they have utilized multiple entities, to circumvent the 250 return threshold. However, quite a few more will be affected by the 100 return threshold, and the 10 return threshold will impact almost all of my Form 1065, 1120 series, and 1040 filers with 941, W-2, & 1099 forms.

The current hardship waivers are not an adequate system for this situation. They must be applied for annually, and for each type of form, and must be submitted before the filing season. The filing season itself has a short window. For example, 1099-NECs must be filed within a 31 day period. Some clients will realize on January 25 they need to file 15 1099-NECs, and we will not be able to help them. Neither will they be able to go online themselves.

I suggest two options for the waiver . . .

1. Expand the current waiver request Form 8508 to an Application for Exemption from E-file Requirement Form. The taxpayer would have to explain which reason he/she is applying for, and possibly submit documentation. The exemption could then apply to all forms the taxpayer files for 1 year. Or it could be permanent, with revocation upon when a person demonstrates ability to efile. My concern is that the Internal Revenue Service is not equipped to handle these in a timely manner. Exemptions would possibly need to be approved in time for, in 1099-NEC cases, a very short time after taxpayer becomes aware of efile requirement.

2. The Form 1040 currently has a Form 8948 (Preparer Explanation for not Filing Electronically). Could this kind of form also be utilized? Filer would have to explain why the return was not efiled. I believe this would be the easiest to administer, but would possibly not reduce as many paper returns.

I am open to other ideas. Wishing you wisdom to decide your course of action.

Respectfully,

Dennis G. Hershberger
Indian Trail Tax Prep
1545 W 450 N
Howe IN 46746
Ph:260-562-2241 ext. 2 (voicemail)

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