New Rules Close Loophole for Tax Preparers Looking to Avoid E-Filing

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Tax preparers looking for an escape from mandatory e-filing by saying they did not “file” a tax return for a client are thwarted by final rules issued March 28 by IRS. Rules proposed in December said if tax preparers did not mail a return for a client, they were not subject to the e-file mandate. Many tax preparers had expectations they could wiggle out of the rules by stating that they prepared tax returns but did not file them for clients, but the final rules clarified that the e-filing mandate will apply to any tax preparer who “prepares and/or files” a tax return.