Tax Professionals Handbook

The Form NC-8633, Application to Participate in the IRS E-File Program, is not a requirement for program participation. Tax professionals interested in participating in the Federal/State E-File Program will not have to submit a new or a revised application to the NCDOR. A tax professional must complete IRS Form 8633, Application to Participate in the IRS E-File Program, submit it to the IRS, been accepted into the program, and received an Electronic Filing Identification Number (EFIN) in order to participate in State E-File. You will not have to submit to the NCDOR a copy of the federal acceptance letter. Also, tax professionals will no longer receive a letter of acceptance for the current or subsequent filing seasons from the NCDOR. The NCDOR will continue to send a letter of rejection to participants if necessary for violating the regulations and guidelines of the E-File program. The Department will have access to the Federal Applicant Database that enables the Department to reference pertinent information regarding the tax professional.

The tax professional will need software that has been approved by the IRS and the NCDOR for E-File. A list of approved software developers for the current tax year can be accessed on our web site at www.dornc.com.

The following may result in a tax professional being denied participation in the program:

• Conviction of a criminal offense under the revenue laws of the State of North Carolina, or of any offense involving dishonesty or breach of trust.

• Failure to file timely and accurate returns, both business and personal.

• Failure to pay business and personal tax liabilities.

• Suspension or rejection from the program in a prior year if corrective action is not taken and approved by the NCDOR.

• Other facts or conduct of a disreputable nature that would reflect adversely on the program.

• Unethical practices in return preparation.

• Noncompliance with North Carolina electronic filing rules and regulations as explained in this handbook.

NORTH CAROLINA TESTING PROCESS

Only software developers are required to test their software with North Carolina data. Software developers participating in the program will be provided with test data and instructions to perform the North Carolina testing of Forms D-400 and D-400TC.

Important: NCDOR recommends that a tax professional contract to purchase software capable of electronically filing the North Carolina return after the software developer has completed the testing process with the NCDOR. See page 6 for the dates software developer testing begins and ends. A master list of all approved software developers will be maintained by the E-File Development Unit and is available on the NCDOR’s web site.