2011-02 — As a Result of Late Tax Law Changes, Stockpiling Rule Does Not Apply

The IRS has issued a quick alert to inform tax preparers that, as a result of late tax law changes, there are certain tax returns that will not be accepted, either electronically or on paper, until mid to late February. The stockpiling rule does not apply in this situation. Stockpiling is

• collecting returns from taxpayers or from another Authorized IRS e-file Provider prior to official acceptance in IRS e-file; or

• after official acceptance to participate in IRS e-file, stockpiling refers to waiting more than three calendar days to submit the return to the IRS once the ERO has all necessary information for origination

Details on who is affected can be found in IRS News Release IR- 2010-126.

EROs and Online Providers may hold tax returns containing one or more of these forms until the IRS can accept them. The EROs and Online Providers must advise taxpayers that the returns will not be e-filed until the IRS can accept the returns.