Legal

E-file Disclosures

Effective date: June 29, 2026 · Version 0.4 · Status: pre-launch draft

1. Current status

TakoTax LLC (a Washington limited liability company) is preparing to submit the IRS e-file Application as an Online Provider, Software Developer, and Transmitter for the TY2026 filing season. Electronic filing of federal individual income tax returns through TakoTax is not available until the IRS has approved the application, issued the required identifiers (EFIN/ETIN/Software ID), and TakoTax has completed Assurance Testing System (ATS) and communication testing.

The disclosures below describe how electronic filing will operate once it is enabled. They are published in advance so prospective users can understand the model. The effective date will be updated when e-file actually launches.

2. Planned IRS e-file provider role

If approved, TakoTax will operate as an IRS e-file Provider under IRS Publication 3112 and Publication 1345. The planned provider roles are Software Developer, Online Provider, and Transmitter. TakoTax will not act as an Electronic Return Originator (ERO), Intermediate Service Provider, or third-party preparer. Returns prepared and filed through any enabled TakoTax e-file workflow are self-prepared by the taxpayer using TakoTax software.

3. Planned initial filing scope

The planned initial e-file scope is:

  • U.S. resident individual Form 1040 federal returns prepared by the taxpayer
  • State returns for taxpayers resident in California (CA Franchise Tax Board), Colorado (CO Department of Revenue), and Georgia (GA Department of Revenue)
  • Federal Form 1040 schedules and forms that TakoTax explicitly publishes as e-file enabled after IRS ATS and communication testing. The Supported forms page is preparation/output coverage only today; it is not an IRS application, approval, or ATS-tested e-file list.

This scope is not active today and may change before electronic filing is enabled. If your state has an individual income tax and is not in the supported list at launch, you will need to file your state return another way. States with no individual income tax (TX, FL, WA, NV, SD, WY, AK, TN) generally do not have a broad state income tax return for individuals.

The following are expected to be excluded from the first filing season:

  • Form 1040-NR nonresident alien returns
  • Dual-status returns
  • Tax-treaty rate claims
  • Form 8379 injured spouse allocation as final filing reliance
  • Form 1040-X amendments transmitted through e-file
  • Third-party preparer, B2B, or assisted-prep filing
  • Any form or scenario not included in official IRS/state testing evidence for the launched scope

If e-file is enabled, TakoTax will refuse to transmit returns containing facts outside the supported scope. Out-of-scope returns must be filed by another method.

4. Taxpayer authorization to file

Before any return is transmitted to the IRS or a state agency, the taxpayer (and spouse, if filing jointly) must:

  • Review the complete return summary and generated forms
  • Affirmatively authorize TakoTax to transmit the return
  • Provide the electronic signature method described below

Closing the browser, navigating away, or otherwise abandoning the workflow before the authorization step does not result in a return being transmitted. A return is transmitted only after the explicit authorization is recorded.

5. Electronic signature and identity verification

TakoTax will use the IRS Self-Select PIN method for online self-prepared individual returns, in accordance with Publication 1345. The taxpayer (and spouse, if joint) will:

  • Select a five-digit PIN that is not all zeros
  • Provide the prior-year Adjusted Gross Income (AGI) or prior-year Self-Select PIN required by the IRS to authenticate the signature
  • Provide date of birth

TakoTax records the signature, jurat acceptance text, timestamp, account or session identifier, IP address, and user-agent of the signing event. TakoTax does not accept e-file signatures collected outside the in-product workflow.

6. Consent to electronic records for e-file authorization

Draft text version: esign-consumer-disclosure-v0.1-draft

By continuing, you agree that TakoTax may provide the records and disclosures for your tax return preparation, review, authorization, electronic signature, transmission, acknowledgements, rejections, correction notices, payment/fee disclosures, and related support communications electronically instead of on paper.

This consent covers records provided through the TakoTax app or website for the return year you are working on, including federal e-file disclosures, state e-file disclosures, the IRS e-file signature authorization and jurat, Self-Select PIN identity-authentication prompts, transmission status, IRS/state acknowledgement or rejection information, correction instructions, copies of your prepared return, and related support messages.

You may choose not to consent to electronic records. If you do not consent, or if you withdraw consent before authorizing transmission, you may still prepare a return, but TakoTax may require you to print and mail the return or use another filing method because electronic filing depends on receiving and signing these records electronically. Withdrawing consent after a return has already been transmitted does not cancel records already provided, signatures already recorded, payments already authorized, or submissions already sent to the IRS or a state agency.

You have the right to request paper copies of records that TakoTax is legally required to provide. You can print or download records from the app where available. You can request a paper copy by contacting [email protected] or the support channel shown in the app. TakoTax does not charge a separate fee for electronic copies. If a mailed paper copy is requested, TakoTax may charge only a reasonable copying/postage fee after disclosing the amount.

You may withdraw consent or update your electronic contact information by contacting [email protected] or using the account/support controls available in the app. Withdrawal applies prospectively after TakoTax has a reasonable time to process it.

To access and retain electronic records, you need: an internet connection; a current browser that supports TLS/HTTPS, JavaScript, cookies, and local storage; a device and operating system capable of displaying web pages and PDF files; access to your account or email; and the ability to save, print, or otherwise retain HTML and PDF records. If these requirements change in a way that creates a material risk you can no longer access records, TakoTax will provide an updated disclosure and ask for renewed consent where required.

By checking the box and continuing, you confirm that you can access, view, save, and print or otherwise retain the electronic records described above.

7. Transmission, acknowledgement, and timing

After authorization, TakoTax packages the return into the IRS Modernized e-File (MeF) format, validates it against IRS schemas and business rules, and transmits it to the IRS. The IRS issues an electronic acknowledgement indicating whether the return was Accepted or Rejected. TakoTax records and displays:

  • The submission identifier issued by TakoTax for the return
  • The IRS submission ID once assigned
  • The acknowledgement status (Accepted, Rejected) and timestamp
  • Any reject codes and reject descriptions

IRS acknowledgements are typically issued within 24–48 hours of transmission, but IRS processing times are outside TakoTax's control and may be longer during peak filing periods or system outages. A return is not considered filed until the IRS issues an Accepted acknowledgement.

8. Rejected returns and correction

If the IRS rejects a return, TakoTax will display the reject codes, the IRS reject description, and guidance for correction where available. The taxpayer is responsible for correcting and re-transmitting the return through TakoTax, or for filing the return by paper or another method if the reject cannot be resolved electronically. For purposes of meeting a filing deadline, IRS Publication 4164 gives timely filed Form 1040-family individual income tax returns a five-calendar-day transmission perfection period after the return due date: if a rejected return was submitted on or before the due date and the corrected return is Accepted by the IRS by the fifth calendar day after that due date, the IRS treats it as received on the date of the first reject in that period.

9. Filing deadlines

The taxpayer is responsible for meeting all federal and state filing deadlines. TakoTax does not guarantee that a return submitted at or near a deadline will be accepted before the deadline. System outages at TakoTax, at the IRS, or in intermediate networks may delay transmission or acknowledgement. TakoTax does not extend filing deadlines and does not file Form 4868 extensions automatically.

10. Refunds and refund deposit

Federal refunds are issued by the U.S. Treasury, not by TakoTax. TakoTax does not hold, redirect, advance, or otherwise process refunds. If the taxpayer elects direct deposit, refund deposit timing and accuracy depend on the IRS, the U.S. Treasury, and the financial institution receiving the deposit. TakoTax is not responsible for refund delays caused by IRS review, taxpayer-supplied account information, identity verification, or third-party processors.

TakoTax does not offer, broker, or facilitate refund anticipation loans (RALs), refund anticipation checks (RACs), refund transfer products, or any product that involves the disbursement of refund proceeds through a third party.

If a return claims the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), the IRS cannot issue the refund before mid-February under the PATH Act. The IRS hold applies to the entire refund, not only the portion related to the credit.

11. Payment of tax due

For balance-due returns, the taxpayer is responsible for paying tax owed by the applicable deadline. TakoTax supports the IRS electronic payment options available through MeF (such as direct debit/Electronic Funds Withdrawal scheduled at the time of filing) and provides Form 1040-V payment vouchers for taxpayers paying by check or money order. TakoTax does not process payments directly and does not hold taxpayer funds.

12. Fees and payment

Local preparation and form generation are free. If paid electronic filing is enabled, the fee is disclosed on the Pricing page and again in-product before the taxpayer authorizes transmission. TakoTax does not charge a fee based on a percentage of the refund and does not vary the fee with refund size.

Payment is processed by Stripe using a hold-then-charge model:

  • On authorization: TakoTax places a payment authorization on the taxpayer's card for the disclosed e-file fee. No money has moved yet.
  • On IRS Accepted acknowledgement: the authorization is captured and the charge appears on the taxpayer's statement.
  • On IRS Rejected acknowledgement: the authorization is held open while the taxpayer attempts correction within the five-calendar-day IRS transmission perfection period described in Section 8. If the return is corrected and re-transmitted and the corrected return is Accepted, the authorization is captured.
  • If the card hold would expire first: where available, TakoTax may request Stripe Extended Authorization when the initial card authorization is created. If Stripe's returned hold window still does not cover the corrected-transmission window, TakoTax may cancel the stale authorization and ask the taxpayer to re-authorize payment. TakoTax will not capture a fee merely to preserve a hold.
  • If correction is not successful within the five-calendar-day IRS transmission perfection period: the authorization is canceled and no charge is made. Cancellation does not appear as a refund on the statement; it simply releases the held amount.

In plain terms: authorizing transmission places a temporary hold on the card for the disclosed fee. The hold becomes a charge only when the IRS accepts the return; if the return is not accepted within the five-calendar-day IRS transmission perfection period, the hold is released and no charge is made.

TakoTax does not currently offer subscriptions, free-trial-to-paid conversions, or any auto-renewing charge. If TakoTax ever offers a recurring or subscription fee, it will obtain the taxpayer's separate express affirmative consent to the recurring terms before charging, disclose all recurring terms clearly and conspicuously before purchase, allow cancellation by the same medium used to sign up and at least as easily, and, where required, send renewal reminders and retain consent records — consistent with the Restore Online Shoppers' Confidence Act and applicable state automatic-renewal laws.

Any state e-file fee treatment will be disclosed before electronic filing is enabled.

TakoTax does not offer, broker, or facilitate refund anticipation loans, refund anticipation checks, refund transfer products, or any product that involves the disbursement of refund proceeds through a third party (see Section 9).

13. Taxpayer responsibility to review

The taxpayer is responsible for the accuracy of the information entered into TakoTax and for reviewing the complete return before authorizing transmission. TakoTax is software and does not provide tax, legal, or financial advice, does not represent the taxpayer before the IRS or state agencies, and cannot determine whether a tax position is appropriate for the taxpayer's facts. The taxpayer should keep a copy of the filed return and supporting records.

14. IRC §7216 and state preparer-confidentiality consents

IRS rules (Internal Revenue Code §7216 and Treasury Regulation §301.7216-3) require a tax-return preparer or filer to obtain the taxpayer's written consent before using or disclosing tax return information for purposes other than preparing or filing the return. TakoTax will request a separate, IRC §7216-compliant consent before:

  • Using tax return information for any purpose other than preparing and filing the return, providing support for the return, and meeting legal obligations
  • Disclosing tax return information to any third party other than the IRS, the applicable state tax agency, and service providers strictly necessary for preparation, filing, support, or required reporting

California residents are additionally protected by California Business and Professions Code §17530.5. Where a non-preparation use or disclosure applies to a California resident, TakoTax requests a separate California §17530.5 consent (in addition to the federal §7216 consent — the two consents are never bundled into a single click).

Consent is not a condition of using TakoTax. Declining a §7216 or §17530.5 consent will not prevent the taxpayer from preparing or filing the return through TakoTax and is never a condition of using any TakoTax feature. See the State E-file Disclosures page for the California-specific summary. Consents can be revoked prospectively at any time by contacting [email protected]; revocation does not apply to uses or disclosures that have already occurred.

15. Outages and service interruptions

TakoTax may experience scheduled or unscheduled outages. The IRS MeF system itself has scheduled maintenance windows and may be unavailable for periods around the start and end of each filing season. TakoTax does not guarantee uninterrupted availability of the e-file workflow and is not liable for filing delays attributable to IRS or third-party outages. Service status will be communicated through the TakoTax website and, where applicable, in-product banners.

16. Recordkeeping and retention of e-file records

TakoTax retains the records of each e-file transmission for the period required by IRS rules for online providers (currently the end of the calendar year in which the return was filed plus the period required by Publication 1345, and any longer period TakoTax determines is necessary for legal or operational reasons). Retained records include the signed authorization, the transmitted return XML, the acknowledgement, and TakoTax's internal audit fields. See the Privacy Notice for how this data is protected.

17. Support and complaints

Questions about an e-file submission, an IRS reject, or the e-file workflow may be sent to [email protected]. Do not send Social Security numbers, full tax documents, or other sensitive information by email. See the Contact page for the supported communication channels. Complaints related to IRS e-file Provider conduct may also be submitted to the IRS; see IRS guidance on complaints about tax return preparers and providers.

18. Sources

19. Changes to these disclosures

TakoTax may update these disclosures from time to time, including to reflect the transition from pre-launch status to live e-file operation. The current version is posted on this page with a revised effective date.