Dedicated Tax Software for the Banking Industry

IRS E-filing Requirements for Banks: An Overview

The IRS mandates banks to e-file various tax-related documents, ensuring compliance with federal regulations. The mandate includes but is not limited to the Affordable Care Act, Information Returns, and W-2 filing types.

Multi-User for Bank Associations and Branches

• Multi-User Collaboration: Allows bank associations to collaboratively manage tax filings with smaller branches.
• Divide Workload: Central teams can initiate filings, setting up the basic census data, before handing off to branch teams for individual information.
• Optimized Workflow: Enables specialization and division of labor, improving the accuracy and efficiency of tax submissions.
• Seamless Handoff Process: Ensures a smooth transition between the central team and local branches, with clear guidelines to prevent oversight.

Bank Associations

As the link between our e-filing solutions and individual banks, bank associations play a pivotal role in ensuring tax compliance across the banking sector. Our software is designed with these associations in mind by streamlining the e-filing process for various IRS forms, including Form 1095-B and Form 1099-INT. With our platform, bank associations can efficiently manage and submit these forms on behalf of their member banks with confidence to meet their IRS requirements.

By utilizing our software, bank associations enhance their operational efficiency and strengthen their support network, offering member banks a seamless, error-free approach to managing their IRS filing requirements. Our solution ensures that every step of the filing process, from data collection to submission, is streamlined and secure, reinforcing the association's role as a critical facilitator of tax compliance within the banking community.

Efficiency and Speed of Using E-file Provider

E-filing significantly improves document processing for banks. Unlike traditional paper filing, electronic submissions are processed quicker, resulting in faster IRS confirmation. This rapid turnaround is crucial for banks to stay compliant and manage their financial reporting in real time.

 For the tax year 2024, the IRS e-file threshold is only ten forms, effectively making e-filing a requirement for most institutions.

Multi-Employer Excel Import

Our e-filing software is designed to streamline the tax filing process for banking professionals, to easily handle the complexities of managing multiple employers. With just a single Excel file, you can import data for multiple Employer Identification Numbers (EINs) simultaneously. Our software easily handles separating each bank and its recipients into distinct filings. This smart filtering ensures accuracy and compliance across all submissions without the manual hassle.

To get started the process is very straightforward: Drag, Drop, & Done! This intuitive design is simple and convenient, allowing bankers to manage multiple employer filings in one seamless action. Our software saves you significant time and minimizes the potential for errors that can occur with manual data entry and processing. By consolidating this multi-employer upload into a single step, we allow professionals to focus on more strategic aspects. This feature benefits tax preparers and financial departments dealing with bulk processing, offering a streamlined, error-free approach to managing a diverse client base.

Advanced Validation: Direct In-Page Excel Editing

Take advantage of our advanced importer that simplifies your e-filing process by checking your information against hundreds of IRS rules. Our system meticulously scans your data, immediately ensuring compliance by identifying and flagging any mismatched data or errors.

What sets our solution apart is its direct in-page Excel editing: should any issues be detected, our software doesn't just stop at flagging them. Instead, it enables you to make direct, in-page edits to your spreadsheet. This approach eliminates the need to restart the import process from the beginning, saving you invaluable time and reducing the risk of additional errors. Our commitment to e-filing your tax filing extends beyond compliance; it's about enhancing efficiency, accuracy, and peace of mind. With our software, you're not just meeting IRS standards—you're setting a new standard for ease and reliability in financial reporting.

Reduced Risk of Errors

One of the most notable benefits of e-filing is the substantially reduced risk of errors. Electronic filings allow automated checks to identify and flag common mistakes before submission or worse, paper filing. Furthermore, should errors be detected post-submission, the process for making corrections is simple, straightforward, and faster than paper filings.

Faster IRS Confirmations

E-filing provides banks with almost immediate feedback on the status of their submissions. This is a significant advantage over paper filing, where confirmations take weeks or months. Quick feedback updates allow banks to promptly address any issues and ensure their filings comply with the IRS.

Operational Efficiencies

Beyond compliance, e-filing offers operational efficiencies. By streamlining the submission process, banks can allocate fewer resources to manual tax preparation and focus more on strategic activities. This shift reduces operating costs and improves overall productivity and financial management.

Identifying Compliance Challenges

Banks need help maintaining compliance with IRS e-filing requirements. These challenges often stem from the dynamic nature of tax regulations, which can change frequently, and the sheer volume of data that banks must manage and report accurately. Keeping up with these changes and managing data effectively ensures compliance and avoids penalties.

Staying Updated with Regulations

Banks must implement robust strategies to stay informed and navigate the ever-changing landscape of tax regulations. This includes dedicating resources to monitor IRS updates, engaging with professional tax advisors, and participating in industry forums. Banks can promptly adjust their compliance strategies by staying ahead of regulatory changes.

Managing Large Volumes of Data

Managing and accurately reporting large volumes of financial data is another significant challenge. Banks should leverage technology solutions that offer data aggregation, validation, and bulk filing capabilities. Investing in software that automates these processes can significantly reduce the risk of errors and improve efficiency.

Our Commitment to Data Security in E-filing

Our data centers, printing facility, and helpdesk are all HIPAA compliant, and all activity on the platform is automatically audited, monitored, and logged to fend off intrusions actively. All data received on the BoomTax platform is encrypted at every junction. From transport to encryption at rest for private blob stores (256-bit AES encryption) to database and row-level encryption in SQL Azure, we make sure your company's data and information are safe.

Social Security numbers are masked in our UI. They are also masked in employee printouts by default (as suggested by the IRS). We don't store any billing details in our system, as this is handled through a 3rd party merchant service. We will only ask for what is necessary to complete your filing. This keeps the surface area for a potential attack small and limits the fallout in the unlikely event of a breach. As a dedicated serverless Azure IaaS consumer, we also benefit from Microsoft's security posture as our resources are compliant with a myriad of security controls (including SOC-2).

How can Bankers submit forms with BoomTax?

BoomTax will streamline your filing process in 3 simple steps!

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