E-file Mandate FAQs

In 2009, the Nebraska Legislature enacted the e-file mandate for tax preparers because e-filed returns cost less to process, contain fewer errors, and result in faster refunds to those taxpayers due refunds.

The e-file mandate for tax preparers currently applies to individual income tax, corporate income tax, and partnership returns.

The e-file mandate may be extended to other tax programs in the future.

The mandate does not apply to tax preparers who are not paid, such as the IRS Volunteer Income Tax Assistance Program (VITA), or American Association of Retired Persons (AARP) preparers. However, DOR encourages all tax preparers to e-file returns they prepare even if they are not required to do so.

Taxpayers are not required to e-file their individual income tax, corporate income tax, or partnership returns, but are still strongly encouraged to do so. Taxpayers who do not want the paid preparer to e-file their returns must complete a  Nebraska E-File Opt-Out Record for Individuals  Nebraska E-File Opt-Out for Corporations and Partnerships. This form is retained by the preparer.

Regardless of the number of returns prepared at each location, if you or your business locations collectively prepared 25 or more returns in the prior calendar year, ALL returns prepared and filed by you or your other business locations in the current calendar year must be e-filed.

Check with your software provider to see if you can submit the Nebraska return as a “state only” or “unlinked” filing. If so, you may e-file the Nebraska return separately from the federal return.

If your software does not offer a “state only” or “unlinked” filing option, you may use DOR’s NebFile system to file your client's Nebraska individual income tax return. The NebFile system only allows a filing for a Nebraska resident that meets other eligibility requirements.

If neither of these options are available, you must seek a hardship waiver from the Tax Commissioner (see question below for more information).

Yes. A tax preparer may be fined $100 for each return that is not e-filed.

Yes. You may file a  Request for Abatement of Penalty, Form 21. DOR will only abate the penalty under limited circumstances.

Yes, a tax preparer may submit a written request for a hardship waiver from the Tax Commissioner. The Tax Commissioner will only grant hardship waivers in cases where a tax preparer would be unduly burdened by the e-file mandate. Waiver requests will be evaluated and approved or denied on a case-by-case basis, and must be requested annually for review.

A tax preparer must register with the Internal Revenue Service (IRS) as an Electronic Return Originator (ERO) to electronically file tax returns with the IRS and the State of Nebraska. For additional information, visit www.irs.gov.

In addition, an ERO must use software that has been tested and approved by both the IRS and DOR to file a return electronically. For additional information on approved software, click here.

You are responsible for purchasing software that will allow you to meet the mandate requirements.

Click here for a list of the approved professional software products.

Yes, state returns must be e-filed when possible, even if there are required attachments. For various credits and deductions, DOR requires certain forms and other documents to be filed with the return. In some cases, these are low-volume forms that e-file software products do not support. Required supporting documentation may be submitted as an attached PDF document when e-filing your return if your software supports these types of attachments. If the supporting documentation is not received with the return, DOR may request the required documentation during the processing of your return. Income tax refunds may be delayed if all required documentation is not received with the e-filed return.

If the IRS does not allow you to participate in the IRS Federal/State e-file program, you may apply to the Tax Commissioner for a hardship waiver.