Has anyone done a side-by-side comparison? I'm nervous about missing something if I switch away from TurboTax since they have all my historical data.

I actually did run both TurboTax and FreeTaxUSA side by side the first year I switched, and they came up with identical refund amounts. The only real difference was the interface - TurboTax looks fancier but FreeTaxUSA gets the job done. You can always download your tax return PDFs from previous years and have those for reference. You'll need to manually enter some basic info the first time you use a new service, but after that initial setup, it's smooth sailing. The hundreds of dollars I've saved over the past few years has definitely been worth the small hassle of switching.

This is great advice! I'm in Massachusetts and discovered they have special rules for capital gains on collectibles that are different from federal. Almost missed it until my accountant caught it.

Thanks for this detailed breakdown! I didn't realize getting an EFIN was so involved. Do you know roughly how long the whole process takes from applying for a PTIN to getting approved for e-filing?

Getting a PTIN is pretty quick - usually just a few days if there are no issues with your application. The EFIN process is much longer. After you submit the application, get fingerprinted, and complete the background check, it typically takes 45-60 days for approval. So if you're thinking about offering this service for the upcoming tax season, you should start the application process immediately. And remember that you'll need to renew your PTIN annually, which means additional fees. The EFIN doesn't need annual renewal, but you do need to keep your information updated with the IRS.

This is misleading. An ERO still needs an EFIN from the IRS, which requires background checks and compliance with IRS e-file regulations. You can't just "become" an ERO without going through the proper channels. And for the PTIN holder, they're still taking on liability for returns they "sign" - most professionals won't do this unless they're properly compensated and have reviewed everything.

You're right, I should have been clearer. Yes, you still need an EFIN to be an ERO, which requires the background check and application process. What I was trying to say is that there are partnership arrangements where one person has the client relationship and another has the PTIN, working together to provide the service. It's definitely not a shortcut around IRS requirements - just a different business model. Thanks for the correction!

This is exactly the kind of practical advice I needed! I've been overthinking the whole process. So if I understand correctly, I should focus on the actual sensitive data they handle rather than trying to address every possible scenario in those massive templates? Should I also describe their current password policies for their systems?

Yes, that's exactly right! Focus on the actual data they handle, not theoretical scenarios that don't apply to them. A practical WISP is much more useful than a comprehensive one that includes irrelevant sections. Definitely include current password policies for all systems that store sensitive information. Document how often passwords must be changed, minimum requirements (length, special characters, etc.), and who has access to what systems. Also include any multi-factor authentication if they use it, procedures for removing access when employees leave, and any training provided about data security. These practical elements show they're actually implementing security measures, not just documenting theoretical policies.

WISP stands for Written Information Security Program. It's basically a document that outlines how a business protects sensitive information like customer data, employee records, and financial information.

thanks! so its about data protection? is this something all small businesses need now or just certain types?

That's actually not a bad idea if they're local! My old job was cool about it. The HR lady even apologized and said a bunch got lost in the mail. Way better than waiting on hold with the IRS.

This is great advice, thank you! I'll start keeping track of my attempts to get it. Do you think a simple log with dates and times of calls would be sufficient, or should I be sending emails so I have written proof?

Email is definitely better because it gives you a clear paper trail. Send a polite email to HR or payroll requesting your W-2, mentioning that you haven't received it yet and the January 31st deadline has passed. If you call, follow up with an email summarizing the call ("As we discussed on the phone today..."). For extra protection, if they don't respond to regular emails after a week, send a certified letter with return receipt. This proves they received your request. The IRS takes this stuff seriously, and if your employer is systematically failing to provide W-2s, your documentation could help with any potential investigation.

Are there any special forms I need to file if Section 965 applies to me? My tax software doesn't seem to have anything specific about this.

Yes, there are specific forms and worksheets required. You'll need to file Form 965 along with your tax return, and potentially several schedules that go with it. Most consumer tax software doesn't handle Section 965 calculations well, which is why professional help is recommended. The IRS also requires a Section 965 Transition Tax Statement to be attached to your return. Additionally, if you elected to pay the tax over installments (which was an option when the law first passed), there's ongoing reporting for that as well. If you're using consumer tax software, this is one area where it might not have the capabilities to properly guide you through the complex requirements.

Thanks for explaining that - makes much more sense now! One quick question: if I already paid foreign taxes on this income in the country where it was earned, can I claim foreign tax credits to offset the Section 965 tax?