Electronic filer handbook individual income tax

              OKLAHOMA TAX COMMISSION
Electronic Filer Handbook
Individual Income Tax
Tax Year 2010
Revised 10-2010
Table of Contents
Chapter Section Titles Page
Introduction 1
Oklahoma Electronic Filing Calendar 2
Publications 3
1 Changes for Tax Year 2010 4
2 Federal/State Electronic Filing 8
* General Information
* How Federal/State Electronic Filing Works
* How State-only Electronic Filing Option Works
* Acknowledgement
* Who May Participate
* Mandate
3 Filing and Electronic Return 10
* Composition of an Electronic Return
* Electronic Portion of Returns
* Non-Electronic Portion of Returns
* Exclusions from Electronic Filing
4 Rejected Returns 13
5 Form 511EF 14
6 Refunds 15
7 Payment of Balance Due Returns 16
8 Information Electronic Filers Must Provide
to the Taxpayer 16
9 Responsibilities of Electronic Filers 18
*Penalties
*Advertising Standards
*Monitoring and Suspension of an Electronic Filer
1
Introduction
The Oklahoma Tax Commission (OTC) joined with the Internal Revenue Service
(IRS) to provide for electronic filing of state individual income tax returns.
The Federal/State Electronic Filing Program (JELF) enables taxpayers to file
both returns electronically through their tax prepare. Beginning with Tax Year
2007, Oklahoma began participating in the State-Only portion of the Electronic
Filing Program which enables taxpayers to electronically file their Oklahoma
return separately from the filing of the Federal return. Oklahoma relies on the
IRS to receive the State’s electronic data. The IRS checks the data for proper
format and makes it available to OTC for retrieval.
Beginning with tax year 2009, OTC, in conjunction with the IRS, began
accepting returns filed by method of the Modernized e-File system (MeF). This
transmission method is a Web Service using Simple Object Access Protocol
(SOAP) with attachments messaging capability. State returns can be submitted
as linked to the IRS submission (also referred to as a Fed/State return) or as an
unlinked return (also referred to as a State Standalone return). Oklahoma
expanded e-File under MeF to include part-year and nonresident returns
(511NR); check with your software provider to see if they are supporting Form
511NR for tax year 2010.
Electronically transmitted individual income tax returns will be accepted from
all participants that are accepted into the Federal electronic filing program and
are using accepted Federal/State Electronic Filing software, subject to
suitability checks.
IRS Publication 1345, Handbook for Electronic Filers of Individual Income Tax
Returns, as well as all rules, regulations and requirements governing tax
preparers, transmitters, and originators of returns put forth by the IRS are used
by OTC.
The Oklahoma Handbook is to be used in conjunction with the IRS Publication
1345. Since most functions in the Federal/State Electronic Filing Program are
the same, the Oklahoma Handbook highlights the special features unique to
Oklahoma.
Your comments on this handbook are appreciated.
Suggestions may be directed to: Oklahoma Tax Commission
Communications Division
PO Box 26890
Oklahoma City OK 73126-0890
2
Oklahoma Electronic Filing Calendar
For Tax Period January 1, 2010 to December 31, 2010
Begin Federal/State Software Testing
PATS (JELF) November 1, 2010
ATS (MeF) November 9, 2010
End Federal/State Software Testing
PATS (JELF) January 7, 2011
Begin Transmitting Return to IRS/OTC
JELF Same Date as IRS
MeF Same Date as IRS
Last Date to Transmit Oklahoma Returns
JELF October 15, 2011
Note: Federal/State software testing will begin in November of 2010 and for
PATS will end January 2011. Oklahoma conforms to the dates established
by the IRS and are subject to any changes the IRS may make.
3
Publications
The following publications describe the process of electronic filing :
Internal Revenue Service Publications
Publication 1345, Handbook for Authorized IRS e-file Providers
Publication 1346, Electronic Return File Specifications and Record
Layouts for Individuals Income Tax Returns (Tax Year 2010)
Publication 1436, Test Package for Electronic Filers of Individual Income
Tax Returns (Tax Year 2010)
Publication 3112, IRS e-file Application and Participation
Publication 4164, Modernized e-File (MeF) Guide for Software Developers
and Transmitters (Tax Year 2010/Processing Year 2011)
Oklahoma Tax Commission Publications
Oklahoma Individual Income Tax Electronic Filers Handbook (Tax Year
2010)
Oklahoma Tax Commission JELF Electronic Return Filing Guide (For
Software Developers) (Tax Year 2010)
2010 MeF Schemas (For Software Developers)
Oklahoma Test Package for Electronic Filing of Individual Income Tax
Returns (For Software Developers) (Tax Year 2010)
4
Chapter 1
Changes to 2010 Income Tax
Taxable Income:
Standard Deduction – The Oklahoma standard deduction is equal to the basic Federal standard
deduction. For tax year 2010, the standard deduction for filing statuses married filing joint and
qualifying widow is $11,400, for head of household it is $8,400 and for single and married
filing separate it is $5,700.
Other Retirement exclusion – The Other Retirement exclusion is no longer subject to the
modified Oklahoma Adjusted Gross Income limit. Taxpayer of any income level may now
qualify for this exclusion. Last year, modified Oklahoma Adjusted Gross Income could not
have exceeded $100,000 for single & $200,000 for married filing joint.
Federal Civil Service Retirement in Lieu of Social Security exclusion – The percentage of the
taxable portion of civil service retirement received in lieu of social security which may be
excluded has increased from 60% to 80%.
Military Pay exclusion – Effective July 1, 2010 through tax year 2014, the military pay
exclusion will increase from $1,500 to 100%. The military member will be entitled to a $1,500
exclusion for the income earned during the first six months and a 100% exclusion on the
income earned during the 2nd six months. There will be a worksheet in the income tax packet
to help determine the exclusion.
Payments received as a result of a Military member being killed in a combat zone: Any
payment made by the United States Department of Defense as a result of the death of a member
of the Armed Forces who has been killed in action in a designated combat zone shall be exempt
from Oklahoma income tax during the taxable year in which the individual is declared
deceased by the Armed Forces.
Income earned by an individual whose Military spouse was killed in a combat zone: Any
income earned by the spouse of a member of the Armed Forces of the United States who has
been killed in action in a designated combat zone shall be exempt from Oklahoma income tax
during the taxable year in which the individual is declared deceased by the Armed Forces.
Income from Discharge of Indebtedness Add-back – Income from discharge of indebtedness
deferred under Section 108 (i)(1) of the Internal Revenue Code, as provided for in the
American Recovery and Reinvestment Act of 2009, must be added back to compute Oklahoma
taxable income. Such income will be deducted from Oklahoma taxable income when ratably
included in Federal income over five subsequent tax years.
Emergency Medical Personnel Death Benefit exclusion - Expands the exemption for the
$5,000 death benefit, provided for in Title 63 O.S. § 1-2505.1, to include the death benefit paid
to the designated beneficiary of a registered emergency medical responder whose death is a
result of their official duties performed in the line of duty.
5
Tax:
Business Activity Tax – Every sole proprietor or farmer doing business in Oklahoma is
required to file a Form 511-BAT “Oklahoma Business Activity Tax” to report their
Oklahoma net revenue. If they have been doing business in Oklahoma for more than 1
year, as of December 31st, they are subject to the annual Business Activity Tax of $25.
Credits: - there are three new credits and several have been amended.
Credit for Wire Transfer Fee – A credit is allowed for the electronic funds transfer fee
paid pursuant to the Drug Money Laundering and Wire Transmitter Act (Title 63 O.S.
Section 2-503.1j). Taxpayers will claim the credit for all fees paid during tax years 2009
and 2010 on their 2010 tax return. Any credit allowed but not used will have a five year
carryover provision. Upon request you must be able to document the amount of fees paid
upon which the credit is based.
Credit for Manufacturers of Electric Vehicles - Establishes a credit for the manufacturer
of low-speed electric motor vehicles, medium-speed electric motor vehicles or electric
motor vehicles which are manufactured after June 30, 2010. The manufacturer must have
a manufacturer exemption permit. The credit will be as follows:
• For low-speed electric motor vehicles the credit is $500 per vehicle manufactured.
• For medium-speed electric motor vehicles the credit is $1,000 per vehicle
manufactured.
• For electric motor vehicles, which are not low-speed or medium-speed vehicles,
the credit is $2,000 per vehicle manufactured.
Any credit allowed but not used will have a five year carryover provision.
Business Activity Tax Credit – Establishes a credit equal to the $25 Oklahoma Business
Activity Tax paid on Form 511 or 511NR. The credit may only be taken for the year in
which the Business Activity Tax is levied and if such tax is timely paid.
Credit for Investment in Qualified Electric Motor Vehicle Property – Establishes a sunset
date for the Credit. No credit will be allowed for investments in qualified electric motor
vehicle property placed in service on or after July 1, 2010. Extends the unused carryover
provision from 3 years to 5 years on qualified investments made during the period
January 1, 2010 through June 30, 2010. See Form 567-B
Credit for Investment in Clean-Burning Motor Vehicle Fuel Property – Several
amendments have been made to the credit, among them are:
• Hydrogen has been added as a qualified fuel, but for tax year 2010 only.
• Methanol and “M-85” are no longer considered qualifying fuels.
• The credit, for property directly related to the delivery of a qualified fuel into the
fuel tank of a motor vehicle and the storage of such fuel, increased from 50% to
75% of the cost of the qualified property.
• Adds a credit for a public access recharging system for vehicles propelled by
electricity equal to 75% of the cost of the qualified property.
• Adds a credit for a natural gas refueling station in a private residence equal to the
lesser of 50% of the cost of the qualified property or $2,500.
• Extends the unused carryover provision from 3 years to 5 years.
See Form 567-A
6
Credit for Tourism Development or Qualified Media Production Facility
􀂾 The definition of “tourism attraction” was expanded to include a destination hotel
whose location and amenities, including but not limited to upscale dining,
recreation and entertainment, make the hotel itself a destination for tourists.
􀂾 The amount of the credit was modified to up to 10% or up to 25% of approved
costs, but will be limited to the percent of the approved costs that will result in the
project being revenue neutral to the State as determined by the Oklahoma Tax
Commission. Previously, the amount of such credit was 10% or 25% of approved
costs. Revenue neutral means the amount by which increased tax revenues from
the tourism attraction project or the film, digital media or music production and
development facility will exceed the credit.
􀂾 Proof of expenditures is required prior to the Tax Commission issuing a tax credit
memorandum to the approved company which may be satisfied by a report from
an independent certified public account.
Tax Credit Moratorium
A Tax Credit Moratorium has been placed on many Oklahoma credits. For more
information see Form 511CR and, when applicable, the specific form for a particular
credit.
The following credit has been placed under a moratorium from June 1, 2010 through June
30, 2011.
• Credit for Electricity Generated by Zero-Emission Facilities*
The following credits have been placed under a moratorium from June 1, 2010 through
December 31, 2011.
• Small Business Capital Credit
• Rural Small Business Capital Credit
The following credits have been placed under a moratorium from July 1, 2010, through
June 30, 2012.
• Credit for Hazardous Waste Control
• Gas Used in Manufacturing Credit
• Oklahoma Investment/New Jobs Credit*
• Credit for Energy Assistance Fund Contribution
• Coal Credit
• Oklahoma Agricultural Producers Credit
• Credit for Employers Providing Child Care Programs
• Credit for Entities in the Business of Providing Child Care Services
• Small Business Guaranty Fee Credit
• Credit for Manufacturers of Small Wind Turbines
• Credit for Food Service Establishments that Pay for Hepatitis A Vaccination for
their Employees
• Credit for Qualified Rehabilitation Expenditures*
• Credit for the Construction of Energy Efficient Homes
• Credit for Modification Expenses Paid for an Injured Employee
7
• Credit for Wages Paid to an Injured Employee
• Credit for Qualified Recycling Facility
• Credit for Qualified Ethanol Facilities
• Credit for Qualified Biodiesel Facilities
• Oklahoma Local Development and Enterprise Zone Incentive Leverage Act
Credit
• Poultry Litter Credit
• Film or Music Project Credit
• Dry Fire Hydrant Credit
• Credit for Railroad Modernization
• Credit for Breeders of Specially Trained Canines
• Credits for Employers in the Aerospace Sector
• Credit for Employees in the Aerospace Sector
• Credit for Financial Institutions Making Loans Under the Rural Economic
Development Loan Act
• Credit for Stafford Loan Origination Fee
• Research and Development New Jobs Credit
Carryover Provisions: Credits established before the moratorium are eligible to be
claimed under normal carryover provisions, if applicable.
* These credits can be established during the moratorium but will accrue and may not be
claimed until tax year 2012.
Check-offs: – There are three new check-offs:
Support of Folds of Honor Scholarship Program – Individual taxpayers may donate from
a tax refund for the benefit of the Folds of Honor Scholarship Program, a nonprofit
charitable organization providing academic and vocational training scholarships to
dependents of military servicemen and servicewomen who were either killed or wounded
in action due to military service in the war in Iraq or Afghanistan.
Y.M.C.A. Youth and Government program - Individual taxpayers may donate up to $25
from a tax refund for the benefit of the Oklahoma chapter of the Y.M.C.A. Youth and
Government program. Monies donated will be expended by the State Department of
Education for the purpose of providing grants to the Program so young people may be
educated regarding government and the legislative process.
Multiple Sclerosis Society Fund - Individual taxpayers will be provided the opportunity
to donate up to $25 from a tax refund for the benefit of the Multiple Sclerosis Society.
Monies donated may be expended by the State Department of Health to provide grants to
the Multiple Sclerosis Society for the purpose of mobilizing people and resources to drive
research for a cure and to address the challenges of everyone affected by multiple
sclerosis.
Please see the 2010 Legislative Update located on our website for a complete list of all
changes.
8
Chapter 2
Federal/State Electronic Filing
General Information
2009 Tax Year
Electronic filing continues to be very successful. During the 2010 filing
season there were over 1 million taxpayers that filed e-file. Direct
Deposit refunds were issued in approximately 3 to 5 days and paper
refunds in 10 to 12 days. The Tax Commission would like to thank all
preparers and software developers for their participation.
How Federal/State Electronic Filing Works
For the Federal/State Electronic Filing Program (JELF), both the Federal
return and the State return must be filed in one transmission to the IRS
Service Center.
For the Modernized e-File Program (MeF), the Federal and State returns
do not have to be transmitted together. The State return can be
transmitted after the Federal return is transmitted and has been
accepted by the IRS. The Federal and State returns will be linked by
including the Submission ID of the Federal return in the State manifest.
For both JELF and MeF, the IRS will acknowledge to the transmitter the
acceptance of the Federal return and receipt of State data. The State
data will then be made available for retrieval by the OTC where it will be
entered and processed in the State Income Tax system.
How State-only Electronic Filing Option works
The Federal return does not have to be electronically filed and accepted
before electronically filing the Oklahoma State-Only return. However, the
Federal return must be computed before computing the Oklahoma tax
return and a copy of the Federal information must be included with the
Oklahoma return. Tax preparers will have to indicate in their software
that it is a State-Only/Unlinked filing. The IRS will receive the return
and the data will be made available for retrieval by OTC. After the data is
retrieved, it will be acknowledged and processed by Oklahoma.
For both the Federal/State Electronic Filing Program (JELF) and the
Modernized e-File Program (MeF), the Federal return does not have to be
electronically filed and accepted before electronically filing the Oklahoma
State-Only / Unlinked return.
9
Acknowledgement
The OTC will acknowledge, in a separate acknowledgement, receipt of the
Oklahoma data to the transmitter through the IRS. The transmitter’s
acknowledgement should be available within 3 days for JELF and within
24 hours for MeF from the time the return data is received from the IRS
Service Center.
Who May Participate
Federal/State Electronic Filing for Oklahoma returns is available to all
interested parties who have been accepted in the Federal electronic filing
program and transmit returns to the IRS Service Centers.
State-Only/Unlinked Electronic Filing for Oklahoma returns is also
available to such interested parties if it is supported by their software.
Note: You do not need to register with the OTC. When the IRS approves you for
electronic filing of tax returns, Oklahoma automatically accepts you.
Mandate
All “specified tax return preparers” must file individual income tax returns electronically.
This will apply to returns filed after December 31, 2010.
The term specified tax return preparer has the same meaning as provided in Section 6011
of the Internal Revenue Code.
10
Chapter 3
Filing an Electronic Return
Composition of an Electronic Return
In total, an Oklahoma electronic return contains the same information as a
comparable return filed entirely on paper documents. An electronic return
consists of:
* Data transmitted electronically to the OTC using the IRS as a conduit; and
* Paper documents (sent directly to OTC) that contain information which
cannot be electronically transmitted, such as taxpayer signatures, documents
prepared by third parties, etc. This does not include forms or schedules which
are not accepted by the electronic filing system.
Note: The Oklahoma form 511 requires an accompanying copy of the taxpayer’s Federal
return. The vendor’s software will fulfill his/her requirement by copying the Federal data into the
unformatted records of the state packet before the return is transmitted to the IRS.
Electronic Portion of Returns
The following forms and schedules can be transmitted electronically and
are considered the electronic portion of the return.
Both the MeF and JELF programs support the following forms:
* All Federal individual income tax forms and schedules accepted for IRS e-file
* Oklahoma Resident Individual Income Tax Return & Schedules (OTC Form 511)
* Oklahoma Business Activity Tax form (OTC Form 511-BAT)
* Oklahoma Income Tax Other Credits form (OTC Form 511CR)
* Oklahoma Credit for Tax Paid to Another State (OTC Form 511TX)
* Refund of Sales Tax (OTC Form 538-S) when attached to Form 511
* Refund or Credit for Property Tax (OTC Form 538-H) when attached to Form 511.
Only the MeF program supports the following forms:
* Oklahoma Part-year and Nonresident Individual Income Tax Return & Schedules
(OTC Form 511NR)
* Oklahoma Capital Gain Deduction for Residents Filing Form 511 (OTC Form 561)
* Oklahoma Capital Gain Deduction for Part-year and Nonresidents Filing Form 511NR
(OTC Form 561NR)
* Binary Attachments for any supporting documentation (PDFs)
11
Non-Electronic Portion of Returns
The non-electronic portion of the return consists of the following:
􀂃 Oklahoma Individual Income Tax Declaration for Electronic Filing
(OTC 511-EF), required for all electronic returns, is to be retained
by the ERO for 3 years.
􀂃 Copies of forms W-2, W-2G, or 1099-R, which would normally be
attached to a paper return, must be attached to the form 511EF
and retained by the preparer. ERO’s may be subject to inspection
of records by the OTC during the filing season.
􀂃 If a return contains any forms or supporting schedules listed below
and binary attachments* are not supported, they should be
attached to the 511EF and mailed to the Oklahoma Tax
Commission by the taxpayer. These are not part of the electronic
record and may be required by OTC.
􀂙 Form OW-8-P-Sup-I - Annualized Income Installment
Method for Individuals
􀂙 Form 575 - May 8 or 9, 2003 Tornado Tax Credit
􀂙 Form 511-NOL – Oklahoma Net Operating Loss
􀂙 Form 573 - Farm Income Averaging
􀂙 COFT’s Form – Oklahoma Volunteer Firefighter Tax Credit
􀂙 Form 561 – Oklahoma Capital Gain Deduction
􀂙 Include a copy of other state’s income tax return if Form
511TX is filed
􀂙 Any Oklahoma statements containing additional
information
Note: The 511EF should be placed on top as a cover page. Do not
mail copies of the Oklahoma Income Tax Return, Federal Income
Tax return or withholding statements. Only mail the 511EF to the
OTC if you have any of the above forms as part of the transmitted
tax return.
* If binary attachments are supported these forms and /or supporting
schedules are attached, as PDFs, to the e-Filed return.
12
Exclusions from Electronic Filing
The following types of returns are excluded from electronic filing for tax
year 2010:
* All returns and schedules excluded from IRS e-file
* Returns from preparers, originators or transmitters who have not
been accepted into the Electronic Filing Program
* Amended returns or corrected returns
* Returns for any tax year other than calendar year 2010 if filed
through the JELF program
* Returns for any tax year other than calendar year 2009 and 2010
if through the MeF program
* Returns with dollars and cents entries. Only whole dollars are
accepted
* Returns containing more than 3 form 511TX (Credit
for Tax Paid to Another State)
* Returns transmitted after October 15, 2011 if filed through the
JELF program (Returns can be transmitted year-round through
the MeF program)
13
Chapter 4
Rejected Returns
Paper returns, to replace electronic returns that were rejected by the IRS
and not resubmitted, are to be mailed to the OTC. The following
information is required:
* A printout of the return
* The original, signed, Form 511EF
* State copies of all W-2’s, W-2G’s and 1099-R’s
* A cover letter giving the date the return was rejected by the
IRS eg: rejected 01/30/11
Mail paper returns to:
Oklahoma Tax Commission
Carol Shrum – Taxpayer Assistance Division
PO Box 269057
Oklahoma City OK 73126-9057
When the paper replacement return is received by the OTC, at the
specified address, it will be given priority processing status. Contact
Carol Shrum at 405-522-3827 for additional information, or inquiries.
Note: If non-qualifying returns are filed electronically, the
replacement returns will not be given priority by the OTC
The OTC will monitor receipt of replacement returns.
Failure to submit paper returns in a timely manner may adversely
affect your authorization to file Oklahoma electronic returns.
Changes to Electronic Returns:
After electronic returns are transmitted, they cannot be recalled or
intercepted in process. If the electronic filer or taxpayer wishes to change
any entry after a return has been accepted please note the following
* An Amended Oklahoma Individual Income Tax Return (511X)
must be filed through the normal paper filing process
* No action should be taken to change the computation between
the date transmitted and the date the OTC acknowledges the
return
* If an Oklahoma return is transmitted in error, please contact the
OTC immediately at (405) 522-5723 or by faxing to (405) 522-2072
Attn: Richard Pachankis.
14
Chapter 5
Form 511-EF Oklahoma Individual Income Tax Declaration
for Electronic Filing
Form 511-EF is the signature portion of the return. It must be completed and
signed* by all appropriate parties before the return is transmitted electronically.
The preparer is to keep the 511-EF as documentation.
Form 511-EF
• Authenticates the return
• Authorizes the ERO to file the return electronically on behalf of the
taxpayer.
Form 511-EF does not serve as a power of attorney or as a substitute for the
information required to be provided on the electronic tax return.
Use only the official Form 511-EF or an approved substitute which duplicates
the official form in format, language, content and size. Photocopies are
acceptable as long as they are legible.
The following is a sequence of events in the handling of Form 511-EF:
1. An ERO prepares the return and computes the taxes based on the
information the taxpayer provides, or accepts an already prepared
return for the purpose of electronic transmission.
2. After the return has been prepared and/or before it is transmitted,
the taxpayer must verify the information on the return and sign
the 511-EF prior to the electronic transmission of the tax return.
Both signatures* are required on a joint return.
3. A copy of the prepared return must be provided to the taxpayer.
4. Form 511-EF should be retained by the ERO for 3 years. All EROs
will be subject to periodic reviews by the OTC to assure the
paperwork is being retained. If supporting schedules are required
by the OTC please ensure taxpayer is given a copy of the 511-EF
to mail to the OTC along with the supporting documents as
mentioned in Chapter 3 Non-Electronic Portion of Returns.
Form 511-EF is part of the electronic return for the purposes of taxpayer
verification and signature. A blank 511-EF is the same as a blank tax return.
• Practitioners are prohibited from allowing taxpayers to sign a blank tax
return.
• It is permissible to have the taxpayer review the completed tax return on
the display terminal.
* Entry of the Taxpayer’s Personal Identification Number (PIN) in the electronic filing
process operated by the IRS shall service as an “electronic signature”. Entry of the
Taxpayer’s PIN as signature will only be allowed on a linked (Fed/State) electronically
filed return. Use of a PIN will not be allowed on an unlinked (State Standalone) return.
15
Chapter 6
Refunds
Taxpayers have three options when their return shows an
overpayment of their tax. They may elect to have their
overpayment:
* Refunded directly into their financial institution account
by electronic transfer (Direct Deposit) Note: Oklahoma will
only deposit into one account per tax return.
* Refunded to them in the form of a paper refund check, or
* Applied to next year’s estimated tax.
Direct Deposit offers taxpayers a quicker more convenient way to receive
their refunds, reduces the risk of loss, and allows immediate use of the
funds upon deposit.
Direct Deposit of a refund is not guaranteed. A direct deposit may
be denied due to:
* Incorrect banking data
* Oklahoma income tax due from a previous year
* Fines or debts owed to state agencies or IRS (ie: child support student
loans, etc)
* The estimated tax payments claimed on the return do not match the
estimated tax payments recorded by the OTC
* Adjustment is made to disallow a credit when the taxpayer was not
eligible for it.
* Due to changes in the electronic banking rules, the Oklahoma Tax
Commission will no longer allow direct deposits to or through foreign
financial institutions or if the taxpayer has a foreign address on their tax
return. The taxpayer will be issued a paper check. If the taxpayer’s
address contains APO or FPO that is not considered a foreign address,
direct deposit will be allowed.
Although we do not anticipate problems with the Federal/State
Electronic Filing program, a refund may be delayed. If a taxpayer owes
Oklahoma taxes, fines or a debt to a state agency, the OTC is required by
law to apply (off-set) the income tax refund to these balances.
Taxpayers should first confirm acknowledgment of their Oklahoma
return with their practitioner or transmitter. Tax preparers should wait
at least 14 days from the date of acknowledgment for a paper refund or
10 days for a direct deposit before contacting the OTC about their
refund.
Inquiries may be directed to the Taxpayer Assistance Division at
(405) 521-3160 or 1-800-522-8165.
16
Chapter 7
Payment of Balance Due Amounts
The taxpayer is responsible for paying the amount due to the OTC when a
return is filed or no later than April 20, 2011 if paid electronically.* If the
payment is not remitted electronically the amount due must be paid by April
18, 2011.
Payment may be made by check, money order, credit card, or direct debit.
􀂾 Checks or money orders should be attached to the 511-V and mailed to the
OTC no later than April 18, 2011. Mail to
Oklahoma Tax Commission
Electronic Filing
PO Box 26890
Oklahoma City OK 73126-0890
Do not mail a copy of the tax return with your payment.
If the taxpayer is not paying at the time of transmission, give them the
completed 511-V to be mailed by April 18, 2011. If the taxpayer is making a
partial payment, the form 511-V should be attached to the payment and
mailed to the OTC no later than April 18, 2011. A billing coupon will be
sent to the taxpayer for the balance due at which time the taxpayer will have
the option of paying the remaining balance in full, or making monthly
payments until the balance is paid off.
􀂾 Taxpayers who have a tax amount due may choose to have their payment
directly withdrawn from their checking or savings account. Taxpayers must
supply the bank routing and account numbers, the amount to be withdrawn
and the date the funds are to be withdrawn. No form 511-V is required. The
payment must be made no later than April 20, 2011.
􀂾 Credit Cards accepted are Discover, Master Card, Visa and American
Express. Credit card payments may be accessed via the OTC web site. The
taxpayer would click on links “payment options” and then “Credit Cards” on
the OTC website at www.tax.ok.gov or by calling 1(866)289-0455. Please
be aware a convenience fee will be added to the transaction. The payment
must be made no later than April 20, 2011.
􀂾 The taxpayer can choose to have their payment directly withdrawn from
their checking or savings account via the OTC website. The taxpayer would
click on links “payment options” and then “E-Check” on the OTC website at
www.tax.ok.gov. The payment must be made no later than April 20, 2011.
*Warning! Due to changes in the electronic banking rules, the Oklahoma Tax Commission will no longer
allow direct debits from or through foreign financial institutions. If the taxpayer uses a foreign financial
institution they will be required to pay by check, money order or credit card.
17
Chapter 8
Information Electronic Filers Must Provide to the Taxpayer
The ERO must furnish the taxpayer with documentation of all completed
Oklahoma forms and schedules filed for the taxpayer. This
documentation may be furnished on official Oklahoma forms, on copies
of official forms, or on software designed forms that have been approved
by the Oklahoma Tax Commission. These should be provided to the
taxpayers at the time they sign form 511-EF.
* The completed Oklahoma Individual Income Tax Declaration for
Electronic Filing ( 511-EF)
* Other documents containing required signatures
* Any other documents which are not Oklahoma forms or
schedules.
The ERO should advise the taxpayer to retain copies of :
* Forms W-2, W-2G’s, 1099-R
* Any other documents, not required by OTC which the taxpayer
voluntarily included with the form 511-EF as supporting material
* The signed form 511-EF
The ERO will also retain the 511-EF and copies of the W-2s etc for
3 years.
If an electronically filed return was acknowledged as accepted by the
OTC, the ERO should advise the taxpayer to wait 1 week from the
acknowledgment date before making an inquiry about his/her refund.
If an individual should find it necessary to contact the OTC regarding
his/her income tax refund, they may do so by calling the Taxpayer
Assistance Division at (405) 521-3160 or 1-800-522-8165.
* The taxpayer will be required to furnish his/her (and spouse’s
if applicable) social security number(s)
* The taxpayer should be prepared to provide bank information
if direct deposit was requested.
18
Chapter 9
Responsibilities of Electronic Filers
The guidelines in IRS Publications 1345 and 3112 must be followed for
Oklahoma Electronic Filing.
Penalties for Disclosure or Use of Information
Guidelines outlined in Section 6, IRS Revenue Procedure 93-8 should be
followed, as well as Title 68, Section 205 Oklahoma Statutes.
Penalties for Late Filing, Late Payment and Fraudulent Returns
This provision provides due notice that all penalties, interest and
criminal provisions which are applicable for paper returns, are also
applicable for electronic returns. Specifically, penalty and interest on tax
for late filing and/or late payment will be assessed.
Penalties will be assessed for any person filing a fraudulent or misleading
return. Additionally any person who willfully subscribes or presents a
fraudulent return will be subject to prosecution and the penalties.
* Other criminal provisions will be applicable to the extent that a
person attempts to commit forgery and falsify signatures on
any electronic filing form or check
* Any attempt to pass bad checks for payment of taxes will be
prosecuted.
Advertising Standards
Guidelines in IRS Publications 1345 and 3112 and Revenue Procedure
93-8, Sec 12.01 through 03 and 05 through 09 must be followed as
though references to the IRS or Service were references to the OTC, State
of Oklahoma, or the State and references to the FMS or Treasury Seals
were references to the State of Oklahoma Seal.
Monitoring and Suspension of an Electronic Filer
The OTC will monitor electronic filers for conformity to this publication.
The OTC can recommend suspension of an electronic filer for due cause
through the local IRS District Office Coordinator.
Note: Warning letters, suspension and rejection from electronic
filing will be administered by the local IRS District Director.
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For questions or inquiries please contact:
Joan Korthanke (405) 521-3637
Email: jkorthanke@tax.ok.gov
Or
Richard Pachankis (405) 522-5723
Email: rpachankis@tax.ok.gov
In State Toll Free 1-800-522-8165 ext 13637
Fax: (405) 522-1711
Email: efile@tax.ok.gov