Step by Step Guide to the Business Tax Return Process

Workflow Status: NOT STARTED

Status used when the return was created but no work has started.

Workflow Status: RECEIVED

Status used when client documents have been received, and the job is ready to move into tax return process.

Workflow Status: INCOMPLETE – NOT READY

No Time Guideline (status depends on client providing missing information).

The Supervisor or Preparer reviews client-uploaded documents and if additional information is required before preparation can begin, change status in PE to INCOMPLETE – NOT READY and FORWARD to your desk.

Workflow Status: EXTENSION PREPARATION

Time Guideline: 2 days.

The Preparer will prepare the extension and FORWARD job to themselves with workflow status of EXTENSION PREPARATION.
If a Supervisor review is required, the Preparer will FORWARD the job to the Supervisor and advance the workflow status to EXTENSION REVIEW.
The Preparer who finalizes the extension and prepares it for electronic delivery is responsible for updating the job status to ON EXTENSION.

Workflow Status: EXTENSION REVIEW

Time Guideline: 2 days.

The Supervisor will complete a detailed review of the extension.
If review notes need to be cleared, The Supervisor will complete a detailed review of the extension.
The Prepare who assembles the extension package is responsible for updating the status to ON EXTENSION.
The Supervisor can deliver the Clients’ extension package directly to the client via HubSync Outlook Plug-In (OPI), this will deliver the package to the Client’s HubSync workspace directly.
If the Supervisor prefers the Tax Processing team to deliver the extension package to the Client workspace, please FORWARD the job to Tax Processing and advance the workflow status to PREPARE FOR DELIVERY. Please leave delivery instructions in PE on the delivery page Hold/Notes section, indicating that the instructions are for EXTENSIONS. Please note, the Tax Processing team will deliver the extension package saved in the 1000 section in DMS.
If there are paper deliverables that KSM needs to mail, please FORWARD the job to Tax Processing and advance the workflow status to PREPARE FOR DELIVERY. Please leave delivery instructions in PE on the delivery page Hold/Notes section, indicating that the instructions are for EXTENSIONS.

Workflow Status: PREPARE FOR DELIVERY

Time Guideline: 1 day

The Tax Processing team will handle the shipping or mailing of extension related documents as detailed in the delivery section in the PE job.
The Tax Processing team will delivery extension packages to the Client’s HubSync workspace based on instructions is requested.
The Tax Processing team will FORWARD the job to Supervisor and advance the workflow status to ON EXTENSION.

Workflow Status: ON EXTENSION

No Time Guideline (status depends on client providing missing information).

This status indicates that the return is on extension.

Workflow Status: PREPARATION

Time Guideline: 5 days.

Shelf Returns:
1. A Preparer will pull the return according to their department’s shelf-monitoring procedures.
2. The Preparer will add their name to the Staff role and set themselves as Primary in PE (do not remove the “shelf” staff).
3. The Preparer will then FORWARD the job to themselves, so it shows on their My Desk.
Preparation Process:
1. Begin preparation of the tax return.
2. If preparation cannot continue due to missing information:
  - Confirm with the Supervisor.
  - Change the status to WAITING ON ADDITIONAL INFO (this temporarily “stops the clock” on the 5-day timeline).
  - Resume once sufficient information has been received, using professional judgment and Supervisor guidance as needed.
Completion of Preparation:
1. Update and complete the return.
2. Update the delivery section in PE, ensuring delivery options and emails are selected. Add notes for the Tax Processing team as needed. For example, if anything needs attached to paper filed return or the client copy that is not attached in Axcess.
3. Complete preparation and review using the KSM Way – Quick Check. Returns not meeting this standard will be returned.
Routing After Preparation:
1. No Supervisor/Tax Review required:
  - Complete the Finalization Process.
  - FORWARD to Signing Partner/Director → status SIGNATURE REVIEW. *The preparer must confirm with the signer whether they prefer to review a finalized copy (exported to CCH efile and printed for Client delivery) of the return or an accountant’s copy.
2. Supervisor Review required:
  - print to PDF directly out of CCH Axcess Tax.
  - Save the file in the client’s [Tax Year] document library in DMS.
  - FORWARD to Supervisor → status SUPERVISOR REVIEW.
3. Tax Review required (no Supervisor Review):
  - FORWARD to the Tax Department by choosing the applicable shelf → status TAX REVIEW.
  - Options include:
    - Business Returns, Tax Review Shelf
    - Other Returns, Tax Review Shelf (990, 1041, 709)
    - Property Tax Returns, Tax Review Shelf

Workflow Status: WAITING ON ADDITIONAL INFO

No Time Guideline (depends on client response).

When enough additional information is received to restart, the Preparer or Reviewer will advance the return to the appropriate next step.
Send updated open items lists to the client and follow up regularly to ensure the process continues.
Once sufficient information has been provided, the Preparer or Reviewer will advance the return status in PE to the appropriate next step in the process.

Workflow Status: SUPERVISOR REVIEW

Time Guideline: 5 days.

The Supervisor completes a detailed review using the Reviewer Responsibilities Document.
Focus on value-added review notes. Before writing a note, ask:
1. Does it meet a professional standard?
2. Does it help the firm make money (add value)?
3. Does it help the client make money (add value)?
The Supervisor communicates changes noted in the Return Comments workpaper.
Gold Standard: The return must be technically and visually ready to deliver to the client when passed to Tax or Signature Review. Exceptions should be documented as open items or preparer questions.
Review the delivery section in PE, ensure correct delivery options and emails are selected. Add notes for the Tax Processing team as needed.
Routing:
1. If Supervisor notes must be cleared: FORWARD to Preparer → status CLEARING SUPERVISOR COMMENTS. The Supervisor is responsible for communicating to the Preparer the next steps of the return.
2. When all comments are cleared:
  - With Tax Review:
    - print to PDF directly out of CCH Axcess Tax.
    - Save in the client’s [Tax Year] document library in DMS.
    - FORWARD to Tax Department → status TAX REVIEW.
  - Without Tax Review: *The Supervisor must confirm with the signor whether they prefer to review a finalized copy (exported to CCH efile and printed for Client delivery) of the return or an accountant’s copy.
    - If ready for Partner review and directly on to Client delivery, complete the Finalization Process and FORWARD to Signing Partner/Director → status SIGNATURE REVIEW.
    - If ready for partner internal review only (and not Client delivery yet), FORWARD accountants copy with SIG in file name to Signing Partner/Director → status SIGNATURE REVIEW.

Workflow Status: CLEARING SUPERVISOR COMMENTS

Time Guideline: 1 day.

If the preparer cannot address comments by the next business day (due to PTO or other commitments), they should inform the reviewer of the expected completion timeline (a Teams message is suffice).
Clearing Comments:
1. The Preparer is responsible for clearing all Supervisor review comments.
2. Each comment must be signed with a description of what was done to clear it.
3. If the Prepare is stuck or confused for more than 15 minutes, they must contact the Supervisor for assistance. In some cases, a peer could also help move through an issue.
After clearing comments, use the KSM Way – Quick Check to ensure readiness. Exceptions should be noted as open items or questions.
Once complete, print to PDF directly out of CCH Axcess Tax and save in the client’s [Tax Year] document library in DMS.
Routing:
1. If the supervisor has indicated that they would like to review the return after the preparer has cleared the supervisor comments, the preparer should route the return back to the supervisor with the status SUPERVISOR REVIEW.
2. No Tax Review: *The Supervisor must confirm with the signor whether they prefer to review a finalized copy (exported to CCH efile and printed for Client delivery) of the return or an accountant’s copy.
  - If ready for Partner review and directly on to Client delivery, complete the Finalization Process and FORWARD to Signing Partner/Director → status SIGNATURE REVIEW.
  - If ready for partner internal review only (and not Client delivery yet), FORWARD accountants copy with SIG in file name to Signing Partner/Director → status SIGNATURE REVIEW.
3. Tax Review required: FORWARD to Tax Department → status TAX REVIEW.
  - Business Returns, Tax Review Shelf
  - Other Returns, Tax Review Shelf (990, 1041, 709)
  - Property Tax Returns, Tax Review Shelf

Workflow Status: TAX REVIEW

Time Guideline: 3 days.

The Tax Department Reviewer completes a theory-based analytical review using the Reviewer Responsibilities Document.
Federal Tax Review Criteria
Comments must be clear and documented:
All returns: comments go in the Return Comments workpaper in DMS.
After review, the Reviewer will FORWARD to Supervisor (unless the “Return To” role is filled in PE) and advance status to CLEARING TAX COMMENTS.

Workflow Status: CLEARING TAX COMMENTS

Time Guideline: 1 day.

The Supervisor determines if it is practical to have the Preparer to assist with clearing Tax Comments.
If the Preparer gets stuck clearing tax comments for more than 15 minutes, they must contact the Supervisor.
Each comment must have a sign off with a description of what was done to clear it.
After clearing comments, the Preparer and Supervisor use the KSM Way – Quick Check to confirm readiness.
When ready for partner review: *The Supervisor must confirm with the signor whether they prefer to review a finalized copy (exported to CCH efile and printed for Client delivery) of the return or an accountant’s copy.
1. If ready for Partner review and directly on to Client delivery, complete the Finalization Process and FORWARD to Signing Partner/Director → status SIGNATURE REVIEW.
2. If ready for partner internal review only (and not Client delivery yet), FORWARD accountants copy with SIG in file name to Signing Partner/Director → status SIGNATURE REVIEW.

Workflow Status: SALT REVIEW

Time Guideline: 3 days.

This status applies only when a return goes through SALT Review after Federal Tax Review.
1. If Tax and SALT Reviews occur simultaneously, keep the return in TAX REVIEW.
2. In such cases, complete the SALT Help Desk Request Form and mark “State Return (SALT) Review.”
The SALT Reviewer completes a high-level review of state returns. See SALT review criteria
Comments must be documented in the Return Comments workpaper.
Reviewer will FORWARD to Supervisor (unless “Return To” role is completed in PE) and advance status to CLEARING SALT COMMENTS.

Workflow Status: CLEARING SALT COMMENTS

Time Guideline: 1 day.

The Supervisor determines if it is practical to have the Preparer to assist with clearing SALT Comments.
If the Preparer is stuck for more than 15 minutes, they must contact the Supervisor.
Each comment must be signed off with a description of what was done to clear it.
After clearing comments, the Preparer uses the KSM Way – Quick Check to confirm readiness.
When ready for partner review: *The Supervisor must confirm with the signor whether they prefer to review a finalized copy (exported to CCH efile and printed for Client delivery) of the return or an accountant’s copy.
1. If ready for Partner review and directly on to Client delivery, complete the Finalization Process and FORWARD to Signing Partner/Director → status SIGNATURE REVIEW.
2. If ready for partner internal review only (and not Client delivery yet), FORWARD accountants copy with SIG in file name to Signing Partner/Director → status SIGNATURE REVIEW.

Workflow Status: SIGNATURE REVIEW

Time Guideline: 3 days.

The Signature Reviewer completes a high-level review using the Reviewer Responsibilities Document.
Comments must be documented in the Return Comments workpaper. Comments should focus only on significant risk areas. The Signature Reviewer should avoid re-performing prior review steps.
Items requiring more detail should be discussed directly with the Supervisor/Preparer.
Routing:
1. If there are comments to be addressed: FORWARD the job to the Supervisor/Preparer and advance the workflow status to CLEARING SIGNATURE COMMENTS.
2. If there are no changes:
  - If the return was Finalized (return barcoded in DMS and you reviewed Client copy) then sign off on all necessary documents in DMS. FORWARD the job to Tax Processing, and advance workflow status to SIGNED TO TAX PROCESSING.
  - If you reviewed accountants copy “SIG” version, FORWARD the job to the Supervisor/Preparer and advance the workflow status to CLEARING SIGNATURE COMMENTS. Leave a comment requesting they complete Finalization Process.

Workflow Status: CLEARING SIGNATURE COMMENTS

Time Guideline: 1 day..

The Supervisor/Preparer is responsible for clearing all Signature Review comments in the Return Comments workpaper.
1. Each comment must be signed off with a description of how it was resolved.
2. If stuck for more than 15 minutes (or sooner), contact the Signature Reviewer.
After clearing all comments, FORWARD back to Signing Partner/Director → status SIGNATURE REVIEW, after completing the Finalization Process.

Workflow Status: SIGNED TO TAX PROCESSING

Time Guideline: 1 day.

Electronic Delivery:
1. The Tax Processing Team will process and deliver returns through HubSync.
2. Please note any client paper documents needing returned to the client in the delivery instructions in PE. The Tax Processing Team is responsible for returning any client paper documents stored in the file room within 24 hours of delivering the tax return.
3. Once processed and delivered, the Tax Processing Team will advance the status to DELIVERED – WAITING ON 8879 or DELIVERED – PAPER FILED.
Paper Delivery:
1. The Tax Processing Team will process, print, and assemble all paper-delivered documents.
2. The Tax Processing Team is responsible for printing and applying all mailing labels.
3. If the delivery address differs from the tax return address, the Preparer must provide this in PE under Delivery Information.
4. After delivery, the Tax Processing Team will advance the workflow status to DELIVERED – PAPER FILED, DELIVERED – WAITING ON 8879, or HOLD FOR DELIVERY.
General Rules:
1. The default delivery option for Client copies is electronic delivery.
2. Preparers are responsible for exporting returns from CCH Axcess.
3. The Tax Processing Team will assemble the Client copy in the correct format for client delivery.
4. The Preparer is responsible for attaching any necessary documents in CCH Axcess or providing special instructions in PE under Delivery Information.

Workflow Status: HOLD FOR DELIVERY

No Time Guideline (dependent on receiving additional returns to deliver).

This is to hold paper delivered tax returns for delivery. Once a complete group of returns has been received by Tax Processing, they will follow the delivery instructions provided in Practice Engine (PE).
The Tax Processing Team will do one of the following:
1. If any part of a return is to be e-filed, advance the workflow status for each such return in the group to DELIVERED – WAITING ON 8879 and complete the delivery process to the client.
2. If a return is to be entirely paper-filed, advance the workflow status to DELIVERED – PAPER FILED and complete the delivery process to the client.

Workflow Status: DELIVERED – WAITING ON 8879

Time Guideline: 5 days.

The Client Service person is responsible for contacting clients if Form 8879s are not returned within 5 days of delivery however Tax Support Coordinators will also be reaching out for missing Form 8879s. Please reach out to your Tax Support Coordinator for help with specific clients if needed.
If delivered via HubSync, clients will also receive automated email reminders.
Signed 8879s that are returned through HubSync will be automatically routed within PE to an 8879 Processor. Please note that although this process is automated, there is still a short delay while the automation runs.
Signed 8879s received by other methods (drop-off, mail, direct email, etc.) must be forwarded to form8879@ksmcpa.com.
1. The 8879 Processor will manually confirm that the form is properly signed and that the return is ready to release. Please note that because manual confirmation is required, there will be a delay in e-filing. The length of the delay will vary depending on the time of year.
Once processed, the workflow status will advance automatically to 8879 RECEIVED.

Workflow Status: DELIVERED – PAPER FILED

Return is considered complete at this status and no further action is necessary.

Workflow Status: 8879 RECEIVED

Time Guideline: 1 day.

The Tax Support Team will complete the back-end release of the return to the IRS.
Supervisors/preparers must monitor the e-file process by opening Axcess, selecting “EF Status,” and searching for their client.

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Supervisors/Preparers must also monitor their jobs in PE to ensure no returns are stalled or unfiled.
The workflow status will automatically advance to IRS ACCEPTED once CCH confirms acceptance.

Workflow Status: TRANSMITTED

Return has been transmitted to the IRS and is waiting for acceptance.

Workflow Status: IRS REJECTED

The federal e-filing has been rejected.

Workflow Status: IRS ACCEPTED

Return is considered complete at this status, and no further action is necessary. The job in PE will automatically close and roll forward 8 days after reaching this status.

The Tax Support Team releases returns to the IRS. Expect occasional delays while automation is verified or manual releases are processed. Check e-filing status in Axcess (“EF Status”) before reaching out to the Help Desk.