E-file Disclosures

1. Current status

TakoTax 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)
• Schedules and forms listed on the Supported forms page and marked as in scope for e-file

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 listed as supported on the supported-forms page and not validated for IRS ATS scenarios

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. 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.

7. 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, the IRS treats a timely filed return that is subsequently rejected as timely if it is corrected and re-transmitted within the IRS perfection period (generally five calendar days for individual returns, subject to IRS guidance and the original due date).

8. 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.

9. 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.

10. 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.

11. 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. If the return is corrected and re-transmitted and the corrected return is Accepted, the same authorization is captured.
• If correction is not successful within the IRS 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.

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).

12. 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.

13. 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.

14. 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.

15. 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.

16. 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.

17. Sources

• IRS Publication 3112 — IRS e-file Application and Participation
• IRS Publication 1345 — Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns
• IRS Publication 1436 — Test Package for Electronic Filers of Individual Income Tax Returns
• IRS Publication 4164 — Modernized e-File (MeF) Guide for Software Developers and Transmitters
• IRS Publication 4557 — Safeguarding Taxpayer Data
• Internal Revenue Code §7216 and Treasury Regulation §301.7216
• California Franchise Tax Board Pub. 1345 (current edition)
• California Business and Professions Code §17530.5
• Colorado Department of Revenue e-file program guidance
• Georgia Department of Revenue e-file program guidance and annual Letter of Intent

18. 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.