Tax Return Delivery: FAQs
Tax Return Delivery provides your tax clients an online, mobile, and guided option for reviewing and signing their tax return that’s as simple as it is effective, keeping you IRS-compliant while eliminating all non-billable time otherwise spent coaching them through signing, paying balances due, and reminding them of estimates to pay.
Functionality & Features
How does Tax Return Delivery differ from sending Tax Returns through eDocs?
eDocs remains an available option for sending tax returns to clients. With Tax Return Delivery, signatures are automatically placed on the 8879 forms, saving you the extra step.
- Returns will be split out for easy client review.
- The Federal and State E-File pages will be split out for signature with automatic placement of signature fields.
- Two signers can sign the return on the same device, which is helpful for clients with only one contact in Liscio.
- For clients who owe taxes, we've made it simple for them to pay federal or state taxes directly via a hyperlink.
What Tax Software is supported for the Tax Return Delivery feature?
We currently support the importing of tax returns from UltraTax, CCH Axcess and ProSystem fx, Drake, Lacerte, and ProSeries.
Are any of the tax software platforms currently supported cloud-based or are they all desktop-based?
We support both!
What happens if the client fails to pass the knowledge-based authentication (“KBA”) questions?
If a client cannot pass KBA, Liscio offers a simple alternative. The client can print the return, sign manually, use Liscio’s scanner app to scan the signed form, and send it to their tax preparer through Liscio.
How do I send a return for electronic signature if I only have one email address for two spouses?
Liscio offers the option for taxpayers to electronically sign from the same device and same login. This option includes a discrete set of KBA questions for each signer, should you elect to activate KBA before any such clients signing.
Does Liscio's automatic signature placement include State forms?
Yes, Liscio's solution includes the following State forms:
- Alabama Form AL-8453
- Arizona Form AZ-8879
- Arkansas Form AR-8453
- California Form 8453-OL
- Colorado Form DR-8454
- Illinois Form IL-8453
- Louisiana Form 8453
- Massachusetts Form MA 8453
- New York Form TR-579-IT
Why isn't my tax return going to the Drafts - Ready to Send tab?
Tax returns will not process if:
- The return has a watermark.
- It is missing the Federal 1040 form, the 8879, or if the Federal 1040 is missing the tax partner first or last name.
- An entity (business) return is imported.
- It comes from an unsupported tax software.
Does this work like any other "task" created in Liscio where it will send reminders to the client if they have not reviewed and signed the e-file forms?
Yes! Liscio sends reminders so you don’t have to. There is also an option for text-based reminders when getting an immediate response from the client is needed.
How do I stop estimate reminders for my client if they've already paid or payments are being auto-debited?
You can delete them under the Account's Tax Details tab.
What about the due diligence forms, payment authorizations, or EIC acknowledgements in the tax return? Will the client be able to sign them?
Additional forms or pages would need to be handled outside of the automated delivery process. Here are two best practices for filings or documents we don't yet support in the Tax Return Delivery process:
- send the return as an Inbox attachment:
- if there's an additional return you need to provide the client, e.g. a locality filing.
- if you need to provide any guidance on next steps, printing/mailing, etc.
- send the return's signature form via eDocs:
- if the filing requires a separate form signed; usually this is only if the return supports e-filing.
- if there's an associated return, send that via Inbox attachment in addition to using eDocs for just the signature form.
Limitations
Can Business Tax Returns be imported at this time?
We currently support Individual (1040) returns for the Tax Return Delivery feature. Entity Returns can still go through the Liscio eDocs feature!
Can I import a State-Only Tax Return?
No, the return must include the federal 1040 & 8879.
Can I import my Canadian Tax Returns?
We currently only support U.S. Tax Returns.
Can clients sign an Engagement Letter through this feature?
No. We assume that the engagement letter was signed prior to the preparation of the return. They can be signed via Liscio's Get a Signature Task or eDocs feature!
Can clients sign Form 8878 for direct debit of estimated balance due?
We don't support signing Form 8878 or delivering Extensions at this time.
Can I send my Tax Return Requests in Bulk?
Currently, there are many variables that firms can select when sending Tax Returns through a Request, such as the Contact who's the Taxpayer, the Account, whether the spouse will be signing on same device, whether you're using KBA or not, etc. Because of these variables, it's not possible yet to efficiently send them out in Bulk. However, firms can Import them in Bulk and then send them to the respective clients after deciding on those variables.
Pricing & Billing
How much does Automated Tax Delivery Cost?
- $5 per return without KBA
- $7 per return with KBA,
- No charge until the client accepts the return.
- Liscio bills after the first client accepts all the Federal and State return forms.
- This allows clients and firms to make corrections prior to being charged.
Will I get charged if the Tax Return is cancelled before the client signs the 8879?
There is no charge until the client accepts the return. Liscio bills after the first client accepts all the Federal and State forms. This allows clients and firms to make corrections prior to being charged.
How can I ensure my clients pay me for my tax services?
We suggest collecting payment details during the engagement process using our eDoc feature. If you payment software generates a link, that link can be sent in a Liscio Task.
Compliance & Security
Is knowledge-based authentication (“KBA”) required for all individual tax returns filed on Form 1040?
According to the IRS, identity verification is not a one-time event; it must be conducted every time a taxpayer electronically signs these forms. However, there are two exceptions to this rule. First, if the taxpayer signs the form in person with the Electronic Return Originator (ERO), identity verification is not required. Second, if the taxpayer has an established multi-year business relationship with the ERO, meaning the ERO has previously prepared tax returns for the taxpayer and has already verified their identity, further verification is not needed for subsequent filings. For more details, you can refer to the IRS guidance here.
Can I disable knowledge-based authentication ("KBA") in Liscio?
Yes. You control which returns are sent using KBA and which aren’t.
Do clients need a login to access documents?
Yes, for security reasons required by the IRS.
Document Management
Where can I find the signed 8879?
The completed, signed document will be placed in the Liscio Vault (client's Files section), for easy access by both you and your clients.
Contact Us
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