Best practices guide
Follow recommended best practices to streamline return delivery, improve efficiency, and create a smoother Returns experience for your firm and taxpayers.
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Welcome to our step-by-step guide to align your firm with our recommended best practices to make your experience with Returns easy and seamless.
Our most successful customers will tell you this
Streamline the process:
There are 2 approaches to processing returns in Returns:
- Administrators Only (Recommended): The ERO/Signer should complete their final review in the tax application or from a PDF before uploading to Returns. Only Administrators will process and deliver returns.
- Returns is designed to automate tax return assembly and delivery. The QA/QC process is well defined and easily learned. Administrators adopt and embrace it quickly as it lets them deliver tax returns in 3-4 minutes.
- Administrators and Partners: Administrators process the return then send it to the ERO/Signer/Partner for review. The Partner will either deliver to the taxpayer or route back to the Administrator with approval to deliver. This creates inefficiencies as 2 people are essentially performing the same task. This goes against Lean Six Sigma process improvement principles and is not recommended.
Send a templated email to taxpayers:
We recommend you send a templated email to the taxpayer before you deliver the tax return from Returns. You might consider having 2 different email templates, one for the 1040s and one for entity returns. The content of the email should include the following:
- We are using a new program called Returns to deliver tax returns electronically. You should have received an email from noreply@safesendreturns.com. If you haven’t, check your Spam or Junk folder and add it to your safe sender's list.
- The email contains a safe link. Open it and enter the last 4 digits of your Social Security number (SSN) to verify your identity. After verification, you will receive an access code in a separate email or text.
- You will gain access to your tax return where you can:
- Download, review, print
- Electronically sign your e-file authorization forms, or print, manually sign and return to us as usual (1040 template).
- The IRS requires identity verification — be prepared to answer some personal questions (1040 template).
- Electronically distribute your K-1 schedules to your Partners/Shareholders (entity template).
- Print, sign and return your e-file authorization forms (entity template).
- Find out if you owe taxes, are receiving any refunds, and review your estimated tax payments.
- For a walkthrough guide for the taxpayer, refer to Client experience.
Use for all qualified taxpayers:
Our most successful customers are sending 75% - 85% of their tax returns through Returns. This is where you will get the highest return on investment. Take the position that every tax return will be delivered through Returns unless they fall into one of the following categories:
- Taxpayers who won’t qualify for knowledge-based authentication (KBA). These taxpayers can sign the return manually using Returns:
- Children.
- Taxpayers living outside the U.S..
- Taxpayers who recently moved to the U.S..
- Taxpayers who recently married and changed their name.
- Extension packages.
Send manually filed returns in paper or as an attachment:
For returns that need to be manually filed, there are 2 approaches that have proven successful:
- Electronic: In theAttachmentssection, upload each manually filed return as a separate PDF. In addition to completing theMessage From Preparer, include any relevant instructions for the client.
- Paper: Mail them a paper copy of only the manually filed returns and provide them with instructions.
Personal preferences are problems:
When delivering paper-based tax returns, many firms and partners have personal preferences for how to assemble and deliver them. However, these preferences don't translate well to an electronic process. Accept the client copy of the tax return as it comes out of your tax application. Lean Six Sigma studies show that taxpayers typically don't share these preferences — for example, most don't have a preference for ERO signature type (wet signature or signature stamp).
Policy decisions
This section is only for new customers who haven't set up their accounts yet. Before your initial Account Setup training, have your Returns Champions discuss and agree on how your firm will handle the following items.
ERO signatures
- What is your current policy for ERO signatures on Form 8879?
- Have you considered using the SSR signature stamps? If so, consider using signer delegation, which lets you grant others permission to place your signature stamp.
- It is recommended that you use signature stamps in your tax application or in Returns, not both. If both are enabled, the signatures will stack and look odd.
E-signatures on form 8879
- Knowledge-Based Authentication: Required by the IRS and we recommend keeping it enabled.
- Entity: E-signatures are allowed for entity returns. The IRS has extended its temporary policy on accepting certain e-file forms indefinitely.
Delivery permissions
- Who will be allowed to deliver the returns?
- Any user can deliver returns (recommended) or
- Restricted to the Partner and System Admin roles (not recommended).
Voucher reminders
- Do you want Taxpayers to receive an email notification before their payments are due?
- If so, how many days before the due date do you want them to receive the reminder?
1040 authentication
- Use the first or last 4 of the SSN?
PDF download options
- Transmittals: Include them with the tax return or create a separate PDF?
- Payment Vouchers: Separate by due date or group in a single PDF?
Invoices and payments
- Will you send invoices with the returns?
- If yes, what is the source-tax application (ex. QuickBooks)?
- Will you offer online payment of invoices?
- If yes, do you have an existing PayPal account or another URL?
Default messages
- Consider default messages to taxpayers based on return type or use case scenario.
Delivered returns report
- Do you want a custom field in the Delivered Returns Report?
- If so, what are the Field Name and the related possible values/statuses?
What all users must know
It is very important that all users read and understand this section of this guide to prevent unnecessary customer support tickets and user frustration.
Return types
- If a user submits an unsupported return type, the system displays an error or unsupported status, and sends you a notification email.
E-signing form 8879
1040
- The IRS requires the taxpayer and spouse to authenticate separately with knowledge-based authentication.
- They’ll be asked 3-5 personal questions that are obtained from their credit report and other public databases.
- LexisNexis generates the questions.
1041, 1065, 1120, 1120S
- The IRS currently doesn’t generally accept the use of E-Signatures on the 8879s for these return types.note
- E-signatures are allowed for entity returns. The IRS has extended its temporary policy on accepting certain e-file forms indefinitely.
- Your firm can decide whether or not to use e-signing on entity returns.
PDF requirements
- Must be the client copy of the return. Don’t submit the Accountant or Governmental copy.
- Don’t Modify the PDF files in any way.
- Don’t delete pages or bookmarks.
- Don’t add pages or bookmarks.
- Don’t password protect the PDF file or add a digital signature that might restrict access to the file.
We don’t recommend e-signing in the following situations:
- Taxpayers or spouses that won’t qualify for KBA.
- Children.
- Those living outside the U.S..
- Those who recently moved to the U.S..
- Someone recently married and changed their name.
- Extension packages.
Electronic K-1 distribution
- Available and part of the system for 1041, 1065, and 1120S returns.
Payment vouchers
- Payment vouchers can't be edited after delivery.
- Estimated vouchers can be edited after delivery by using ourUpload Estimatesfeature.
Payment processing
- Returns don’t process any payments. We provide a link for your clients to make their payments to the correct tax authority.
Automatic withdrawal payments
- If your tax application doesn't print the voucher with the return, manually add any payments scheduled for automatic withdrawal to theVoucherstab.
- For payments required online, manually add them to theVoucherstab if your tax application doesn't print the voucher with the return.
Taxpayer preview
- Turn on pop-ups in your preferred browser to use theTaxpayer Preview. If you select theTaxpayer Previewbutton and nothing happens, it's being blocked.
Print settings
It is very important that all users read and understand the print settings for the tax application.
Additional resources
note
- If this is the client's first time using Returns, send the firm's templated email (refer to Send a Templated Email to Taxpayers).
- At the end of the preparation process, follow the normal steps, such as setting the status toComplete, exporting for e-filing, and printing PDF copies to your firm's standard document storage location.
Need help?
Customer support and training resources are as follows:
- Report a Problem: If there is an issue in processing a return, use theReport a Problemfeature in Returns. You can access it from:
- TheHelpdropdown in the top-right portion of Returns (generic form).
- TheActionsdropdown in the Delivered Returns Report (form linked to specific return).
- Call: (855) 818-3552 Ext 3
- Email: support@safesend.com