HOME Tax Notes Research Federal IRS Guidance publications

IRS Releases Publication 4163 (12/2016), Modernized e-file (MeF) Information for Authorized IRS e-file Providers for Business Returns Tax Returns Processed in 2016

Publication 4163 (12/2016)

DATED

DOCUMENT ATTRIBUTES

Jurisdictions
United States
Language
English

Citations: Publication 4163 (12/2016)

1 Introduction and General Information

2 MeF Rules and Requirements
3 MeF Information Applicable to All Form Types
4 MeF Information for Specific Forms
5 IRS e-File for Large Taxpayers Filing Their Own Corporate Income Tax Return
6 Exhibits

The Internal Revenue Service Mission

Provide America's taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.

Processing Year 2017

Nature of Substantive Changes

----------------------------------------------------------------------

Page Change

----------------------------------------------------------------------

All This publication was updated to reflect tax returns processed

in 2017; this includes 2014, 2015 and 2016 tax returns, and a

few 2017 tax year returns.

----------------------------------------------------------------------

All 2013 tax year products were removed.

----------------------------------------------------------------------

All 2016 and 2017 tax year products were added.

----------------------------------------------------------------------

6, 16, Updated IRS definition of a Large Taxpayer

22, 88

----------------------------------------------------------------------

12 Updated New for Processing Year section to include:

• New forms available in XML beginning Tax Year 2016

• Beginning Tax Year 2016, Schema and Business Rules will

not be available on IRS.gov

• Due date and extension changes per PL 114-41, Section 2006

----------------------------------------------------------------------

15 Added subsection for Employment Tax Returns

----------------------------------------------------------------------

Note: When reading this Publication "We" refers to the IRS, while "You" refers to the reader.

1 Introduction and General Information

1.1 What is Modernized e-File (MeF)?

Modernized e-File (MeF) is an important component of IRS re-engineering efforts to improve service, enhance enforcement, and modernize technology and work processes. It is an Internet-based system that uses standardized Extensible Mark-Up Language (XML) constructs, which provide certain businesses the capability to electronically file. MeF processes the following business forms: 720, 940, 940-PR, 941, 941-PR, 941-SS, 943, 943-PR, 944, 945, 94x On-Line Signature PIN Registration, 990, 990-EZ, 990-N, 990-PF, 1041, 1065, 1065-B, 1120, 1120-F, 1120-POL, 1120S, 2290, 7004, 8849, and 8868. Additional forms supported by MeF can be found at Modernized e-File (MeF) Forms on IRS.gov.

1.2 Using Publication 4163

This document addresses Tax Years 2014, 2015, 2016 and some Tax Year 2017 business returns filed during 2017. Publication 4163 provides authorized IRS e-file Providers and Large Taxpayers with specific requirements and procedures for electronic filing through the MeF system. E-file instructions for Large Taxpayers filing their own corporate income tax returns are included in Section 5 of this publication. The procedures in this publication apply to all MeF business e-file programs. All publications referenced in this document are available at Forms and Publications on IRS.gov. Be sure to check the web page frequently for updated information on e-filing through Modernized e-File (MeF) Program Information.

1.3 General Information

When a new tax form is added to the MeF platform, that form may only be filed electronically during the current processing year (for example, PY 2017) and future processing years. Furthermore, for any given processing year, MeF will accept returns for the most recent tax year and two prior tax years. For example, during processing year 2017 Form(s) 1120/1120S/1120-F can only be e-filed for TY 2016, TY 2015 and TY 2014.

1.4 Authorized IRS e-File Providers

Authorized IRS e-file Providers are firms and organizations that develop software, originate and/or transmit electronic returns to the IRS, and provide services to a multitude of taxpayer clients. The roles and responsibilities of providers vary according to the e-file activities that firms conduct. A firm identifies its e-file activity by selecting the appropriate Provider Option in the IRS e-file application. Each Provider Option entails a different role and may have different responsibilities that relate specifically to the e-file activity of the firm. Some providers may have more than one e-file business activity. For example, an Electronic Return Originator (ERO) may also be a Transmitter. Providers must adhere to all IRS e-file rules and requirements applicable to their multiple e-file roles. The following details the roles and responsibilities of each provider option.

1.4.1 Electronic Filing Identification Numbers (EFINs), Electronic Transmitter Identification Numbers (ETINs), and Passwords

All providers must protect their EFINs, ETINs, and passwords from unauthorized use. Providers must never share the numbers and passwords with others, including the transferring of EFINs or ETINs to another entity when transferring the business by sale, gift, or other disposition. If the IRS learns that a Provider's EFIN or ETIN is compromised, the IRS changes the number and notifies the Provider by mailing a new acceptance letter to the Provider. Refer to Publication 3112, IRS e-file Application and Participation for additional information.

1.4.2 Electronic Return Originator (ERO)

The ERO is the Authorized IRS e-file Provider who originates the electronic submission of a return to the IRS. The ERO is usually the first point of contact for most taxpayers filing a return using IRS e-file. Please refer to Publication 3112 and Revenue Procedure 2007-40, Internal Revenue Bulletin (IRB): 2007-26 for additional information. Revenue Procedure 2007-40 informs authorized IRS e-file providers of their obligations to the Internal Revenue Service, taxpayers, and other participants in the IRS e-file Program, and combines the rules governing IRS e-file.

1.4.2.1 ERO Responsibilities

Origination of an Electronic Return: Although an ERO may also engage in return preparation, that activity is separate and distinct from the origination of the electronic submission of the return to the IRS. An ERO originates the electronic submission of a return after the taxpayer authorizes the filing of the return via IRS e-file. An ERO must originate the electronic submission of only returns that the ERO either prepared or collected from a taxpayer. An ERO originates the electronic submission by any one of the following:

• Electronically sending the return to a Transmitter that will transmit the return to the IRS (most taxpayers use this method); or

• Directly transmitting the return to the IRS (rarely used); or

• Providing a return to an ISP for processing, prior to transmission to the IRS (rarely used).

In originating the electronic submission of a return, the ERO has a variety of responsibilities including, but not limited to:

• Timely originating the electronic submission of returns;

• Submitting required supporting paper documents to the IRS;

• Providing copies to taxpayers;

• Retaining records and making records available to the IRS;

• Accepting returns only from taxpayers and authorized IRS e-file Providers; and

• Working with the taxpayer and/or the Transmitter to correct rejected returns.

If the taxpayer chooses not to have the electronic portion of a return corrected and retransmitted to the IRS or if the electronic portion of a return cannot be accepted for processing by the IRS, the taxpayer must file a paper return. See 3.20, Transmission Perfection Period, for detailed instructions about filing a paper return.

Taxpayers required to e-file their return under Treasury Decision (T.D.) 9363 or Section

• Conducting a one-time communication test: no further testing is required as additional forms are added to MeF. This applies to MeF Transmitters using Software Developers' software to prepare and transmit returns;

• Transmitting all electronic portions of returns to the IRS within three calendar days of receipt;

• Retrieving the acknowledgement file within two business days of transmission;

• Matching the acknowledgement file to the original transmission file and sending, or making available, the acknowledgement file to the ERO, ISP or Large Taxpayer for all rejected and accepted returns, within two business days of retrieval;

• Retaining an acknowledgement file received from the IRS until the end of the calendar year in which the electronic return was filed, or, for fiscal year filers, for nine (9) months after the transmission date, whichever is later;

• Immediately contacting the IRS e-help Desk toll-free number 1-866-255-0654 for further instructions if an acknowledgement has not been received within 24 hours of transmission;

• Working with the ERO or Large Taxpayer to promptly correct any transmission error that caused an electronic transmission to be rejected;

• Contacting the IRS e-help Desk toll-free number 1-866-255-0654 for assistance if the electronic portion of the return has been rejected after three transmission attempts;

• Ensuring the security of all transmitted data; and

• Ensuring against the unauthorized use of its EFIN or ETIN. A Transmitter must not transfer its EFIN or ETIN by sale, merger, loan, gift, or any other transaction to another entity.

The Transmitter must notify the ERO, ISP or taxpayer of the following:

Accepted Returns

• Date the return was accepted

Rejected Returns

• Date the return was rejected;

• Business Rule(s) explaining why the return rejected;

• Steps the ERO or taxpayer need to take to correct any errors that caused the reject.

1.4.4 Software Developer

A Software Developer creates software that formats electronic return information according to IRS e-file specifications and/or transmits electronic return information directly to the IRS. IRS e-file specifications are found in Publication 4164, Modernized e-File (MeF) Guide for Software Developers and Transmitters. Additional resources, such as the Automated Enrollment (AE) External User Guide, MeF Submission Composition Guide and MeF State and Trading Partners Reference Guide can be found on the Modernized e-File (MeF) User Guides and Publications page.

Software Developers must pass the Assurance Testing System (ATS). If an Authorized IRS e-file Provider is a Software Developer whose only role in IRS e-file is software development, the Principals and Responsible Officials need not pass a suitability check during the application process. However, if a Software Developer performs the function of any provider options, in addition to software development, then suitability checks will apply.

Software Developers are not required to retest when new Schemas, either major or minor, are released. However, retesting using the ATS system is strongly recommended when updating software with Schema changes.

1.4.4.1 Software Developer Responsibilities

A Software Developer has a variety of responsibilities that include, but are not limited to:

• Adhering to specifications provided in official IRS publications;

• Ensuring its software creates accurate electronic returns;

• Promptly correcting all software errors that cause tax returns to reject; and

• Distributing the corrections to all affected parties.

1.4.5 Online Provider

An Online Provider transmits business income tax return information prepared by a taxpayer using commercially purchased software or software provided by an Internet site.

1.4.5.1 Online Provider Responsibilities

An Online Provider has a variety of responsibilities that include, but are not limited to:

• Ensuring the use of an EFIN or ETIN obtained for online filing;

• Ensuring the EFIN of the ISP is included in the electronic return data when applicable;

• Transmitting online returns electronically to the IRS;

• Notifying the taxpayer of the status of a return by:

• Sending an electronic transmission to the taxpayer or the ISP, when applicable, within two business days of retrieving the acknowledgment file from the IRS, or

• Mailing a written notification to the taxpayer within one business day of retrieving the acknowledgment file;

• Providing the Internet Protocol (IP) information, which consists of the IP Address, IP Date, IP Time and IP Time Zone;

• Entering into agreements with companies to allow access to online filing only if the company correctly captures the IP Address of the computer submitting the return and the date, time, and time zone of the computer receiving it; and

• Including the Originator Type "Online Filer" in the Return Header.

1.4.6 Intermediate Service Provider (ISP)

An ISP assists with processing return information between an ERO, or the taxpayer in the case of Online Filer, and a Transmitter.

1.4.6.1 ISP Responsibilities

An ISP has a variety of responsibilities that include, but are not limited to:

• Including its EFIN and the ERO's EFIN with all return information forwarded to a Transmitter;

• Serving as a contact point between its client ERO and the IRS, if requested;

• Providing the IRS with a list of each client ERO, if requested; and

• Adhering to all applicable rules that apply to Transmitters.

1.4.7 Reporting Agent

A Reporting Agent originates the electronic submission of certain returns for its clients, and/or transmits the returns to the IRS. A Reporting Agent must be an accounting service, franchiser, bank, or other entity that complies with Rev. Proc. 2007-38, 2007-25 IRB 1442, and is authorized to perform one or more of the acts listed in Rev. Proc. 2007-38 on behalf of a taxpayer. Reporting Agents must submit Form 8655 Reporting Agent Authorization to the IRS prior to updating or submitting an IRS e-file application.

1.4.8 Large Taxpayer

A Large Taxpayer is also a Provider Option on the IRS e-file Application but it is not an Authorized IRS e-file Provider. The creation of an IRS e-file Application for Large Taxpayers is different from the Authorized IRS e-file Providers Application. Therefore, large corporations should carefully read Section 5 of this publication for specific information.

For purposes of electronic filing, the IRS defines a Large Taxpayer as a business or other entity (excluding partnerships) with assets of $10 million or more, or a partnership with more than 100 partners (asset criteria does not apply to partnerships), which originates the electronic submission of its own return(s).

1.5 Communicating with IRS

The following IRS e-file information resources are available to providers.

The IRS e-help Desk provides assistance in support of MeF software and communication testing for corporate, partnership, estates and trusts, employment, excise, and tax exempt returns throughout the filing season. The e-help Desk also provides assistance with e-Services registration and the IRS e-file application processes. Contact the e-help Desk at 1-866-255-0654 or if outside the U.S. and U.S. Territories 1-512-416-7750. You may also contact the e-help Desk with comments or suggestions regarding Publication 4163 or if you have technical questions regarding the e-filing of Forms 720, 940, 940-PR, 941, 941-PR, 941-SS, 943, 943-PR, 944, 94x On-Line Signature PIN Registration, 945, 990, 990-EZ, 990-N, 990-PF, 1041, 1065, 1065-B, 1120, 1120-F, 1120-POL, 1120S, 2290, 7004, 8849 and/or the 8868.

1.5.1 Modernized e-File (MeF) Status Page

The MeF Status page provides information on:

• Current system status

• System maintenance

• Unplanned system interruptions and processing delays

MeF uses QuickAlerts, an IRS email service, to disseminate information quickly regarding MeF issues to subscribers. This service keeps tax professionals up to date on MeF issues throughout the year.

After subscribing, authorized IRS e-file Providers receive round-the-clock communications about issues such as processing delays, program updates, and early notification of seminars and conferences. New subscribers may sign up through the subscription page link located on the QuickAlerts "More" e-file Benefits for Tax Professionals page.

The subject line of a QuickAlert will usually identify targeted providers such as Software Developers and Transmitters, and/or electronic return originators as well as the targeted taxpayer type, either individual or business e-file.

For additional information and assistance on MeF and forms and publications, refer to Table 1-1.

Table 1-1: MeF Information

----------------------------------------------------------------------

Topic Service Phone Number

----------------------------------------------------------------------

Electronic Funds Check the status of payments or 1-888-353-4537

Withdrawal (Direct cancelled deferred payments.

Debit) Payments Visit the Electronic Funds

Withdrawal page for more

information.

----------------------------------------------------------------------

Publications and Obtain IRS publications and tax 1-800-829-3676

Tax Forms forms by phone or go to the

Forms and Publications page

----------------------------------------------------------------------

Draft Tax Forms Obtain draft versions of IRS tax 1-800-829-4933

And Instructions forms and instructions on the

Draft Tax Forms page.

----------------------------------------------------------------------

Business and Request IRS Tax Assistance for 1-800-829-4933

Specialty Tax corporate, partnership, tax

Help exempt, employment or excise

returns.

----------------------------------------------------------------------

1.5.2 Helpful Publications and Information

Use any of the following methods to access publications and information in the subsequent table:

1. Access the Telephone Assistance Contacts for Business Customers page

2. Access the Forms and Publications page

3. Access the following link: IRS e-File Technical Publications

4. Search on IRS.gov "Keyword/Search Terms" box

5. Access the links in Table 1-2:

Table 1-2: Helpful Publications and Information

----------------------------------------------------------------------

Provider Publication Description and/or

Process Option Link

----------------------------------------------------------------------

E-Services All Registration for e-services allows

Registration individuals to conduct business

electronically with the IRS. To

guidance on the e-Services page on

IRS.gov.

----------------------------------------------------------------------

Creating an IRS EROs, Publication 3112, IRS e-file

e-file Transmitters, Application and Participation:

Application Software Provides information on how to

Developers, create an IRS e-file application.

Online Successful completion of the IRS

Providers, ISPs e-file application provides an

and Reporting Electronic Filing Identification

Agents Number (EFIN) and Electronic

Transmitter Identification Number

(ETIN) necessary to originate and

transmit returns to IRS.

-----------------------------------------------------

Large Taxpayers Section 5 of Publication 4163,

IRS e-File for Large Taxpayers

Filing Their Own Corporate Income

Tax Return: Provides information on

how to create an IRS e-file

application specific to Large

Taxpayers. Successful completion of

the IRS e-file application provides

an Electronic Filing Identification

Number (EFIN) and Electronic

Transmitter Identification Number

(ETIN) necessary to originate and

transmit returns to IRS.

----------------------------------------------------------------------

Current Schema Software Known e-file Issues and Solutions:

Known e-file Developers and Contains temporary workaround

Issues and Transmitters solutions for known issues within

Solutions active Schema versions. The issues

are posted, by form and tax year.

----------------------------------------------------------------------

Assurance Test All Publication 5078, Modernized e-File

System (ATS) (MeF) Test Package Business

Testing Submissions: Contains testing

information for Corporations,

Partnerships, Estates and Trusts,

Employment, Excise and Tax Exempt

returns. Test Scenarios can be

found on the Modernized e-File

(MeF) Assurance Testing System

(ATS) Updates page.

----------------------------------------------------------------------

Technical Software Publication 4164, Modernized e-File

Information Developers and (MeF) Guide for Software Developers

Transmitters and Transmitters: Contains

communications procedures,

transmission formats, Business

Rules and validation procedures

for returns e-filed through MeF.

----------------------------------------------------------------------

Attachments to: EROs and Each form family's Schemas and

Software Business Rules page on IRS.gov

• Unique Tax Developers contains a list of all attachments,

Returns: Forms forms and schedules that can be

720/2290/8849 filed for each tax year. Also refer

to Section 4.10 of this

• Exempt publication.

Organization

returns: Forms

990/990-EZ

/990-PF/

1120-POL

• Estate and

Trust Tax

Returns:

Form 1041

• Partnership

Tax Returns:

Form 1065/

1065-B

• Corporate Tax

Returns:

Form 1120/

1120S/1120-F

---------------------------------

Attachments to EROs, Reporting

Employment Tax Agents and

returns: Forms Software

940, 940-PR, Developers

941, 941-PR,

941-SS, 943,

943-PR, 944,

and 945.

----------------------------------------------------------------------

1.6 Overview and Benefits of Modernized e-File (MeF)

The Modernized e-File (MeF) system was developed to provide a standardized format using the widely accepted Extensible Markup Language (XML) format and standardized transmission methods for e-filed returns. IRS works regularly with stakeholders, including accounting firms, practitioners, Software Developers and the states, to identify and resolve issues relative to MeF return and downstream processing. MeF also provides:

• More explicit error conditions--Plain English explanations in the Acknowledgement File pinpoint the location of the error(s) in the return and provide complete information.

• Faster acknowledgements--Transmissions are processed upon receipt and acknowledgments are returned in near real-time.

• Integrated refund and payment options--Refunds can be electronically deposited in bank accounts or balance due payments can be electronically withdrawn from bank accounts. Payments are subject to limitations of the Federal Tax Deposit Rules found in Publications 3151, The ABCs of Federal Tax Deposits and 3151A, The ABC's of Federal Tax Deposits (Resource Guide).

• The capability to attach supporting forms and schedules--Forms 720, 940, 940-PR, 941, 941-PR, 941-SS, 943, 943-PR, 944, 94x On-Line Signature PIN Registration, 945, 990, 990-EZ, 990-N, 990-PF, 1041, 1065, 1065-B, 1120, 1120-F, 1120S, 1120-POL, 2290, 7004, 8868, 8849 and their supporting forms and schedules can be e-filed in MeF. See each form family's Schemas and Business Rules page at IRS.gov for tax year accepted forms and schedules. Also refer to Section 4.10 of this publication.

• 24/7 transmissions--MeF allows Transmitters to send transmissions to the IRS year round, except for a short cutover period at the end of the calendar year.

• A completely paperless process--Taxpayers using a third-party practitioner can use the Practitioner Personal Identification Number (PIN) option; see Section 3.6, Signing an Electronic Return. Forms 8453-C, 8453-S, 8453-I, 8453-PE, 8453-B, 8453-EX, 8453-EO, 8453-EMP and 8453-FE can be printed, signed by the Corporate Officer, Principal or Fiduciary and when applicable, the ERO and/or Paid Preparer, and then scanned and attached to the return as a Portable Document Format (.pdf) file. Form 8665 is used by reporting agents to sign and file certain returns electronically. All other attachments for which XML Schemas have not been developed can be attached as PDF files.

• Support for filing prior-year returns--MeF can process the current and two previous years of returns. For Processing Year 2017, taxpayers can e-file returns for TY 2016, TY 2015, TY 2014, and for some TY 2017 returns.

1.7 New for Processing Year 2017

1.7.1 Forms

Beginning in Tax Year 2016, Forms 8288-A and 8805 will be available in XML format.

1.7.2 Processes and Procedures

1.7.2.1 Schema and Business Rules Posting

For TY 2016, Schemas and Business Rules are available to Authorized Users listed on e-File applications for Transmitters, Software Developers and States. Please contact the MeF Mailbox with the Company Name, your Authorized User Role and ETIN to request the TY 2016 Schemas and Business Rules.

1.7.2.2 Public Law 114-41, Section 2006

Section 2006 (a) and (c) of Public Law 114-41 changed the due dates for business tax returns and extension time frames.

• For tax years beginning after 12/31/2015, the due date for Form 1120 and 1120-F returns changed from the 15^th day of the third month to the 15^th day of the fourth month after the close of the tax year. An exception applies for fiscal years ending June 30^th, the due date will remain the 15^th day of the third month after the close of the tax year.

• For tax years beginning after 12/31/2015, the due date for filing Form 1065 and 1065-B returns changed from April 15 to March 15 for calendar year partnerships. For fiscal year partnerships, the due date for filing changed from the 15^th day of the fourth month to the 15^th day of the third month after the close of the fiscal year.

1.8 Forms for Processing Year 2017

MeF can process all the following parent forms in XML. Check IRS.gov for the exact date MeF will begin processing. A complete listing of forms, including new forms, that MeF accepts can be found on the IRS.gov website at each form family's Schemas and Business Rules page and in Section 4.10 of this publication.

1.8.1 Corporation Returns

• Form 1120, U.S. Corporation Income Tax Return

• Form 1120-F, U.S. Income Tax Return of a Foreign Corporation

• Form 1120S, U.S. Income Tax Return for an S Corporation

1.8.2 Employment Tax Returns

• Form 94x On-Line Signature PIN Registration

• Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return

• Form 940-PR, Planilla para la Declaración Federal Anual del Patrono de la Contribución Federal para el Desempleo (FUTA)

• Form 941, Employer's QUARTERLY Federal Tax Return

• Form 941-PR, Planilla para la Declaración Federal TRIMESTRAL del Patrono

• Form 941-SS, Employer's QUARTERLY Federal Tax Return (American Samoa, Guam, the Commonwealth of Northern Mariana Islands, and the U.S. Virgin Islands)

• Form 943, Employer's Annual Federal Tax Return for Agricultural Employees

• Form 943-PR, Planilla para la Declaración Anual de la Contribución Federal del Patrono de Empleados Agrícolas

• Form 944, Employer's ANNUAL Federal Tax Return

• Form 945, Annual Return of Withheld Federal Income Tax

1.8.3 Estate and Trust Returns

• Form 1041, U.S. Income Tax Return for Estates and Trusts

1.8.4 Excise Tax and e-filing Compliance Returns (ETEC)

• Form 2290, Heavy Highway Vehicle Use Tax Return

• Form 720, Quarterly Federal Excise Tax Return

• Form 8849, Claim for Refund of Excise Taxes (All Schedules available)

1.8.5 Extension Applications

• Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns

• Form 8868, Application for Extension of Time To File an Exempt Organization Return

1.8.6 Partnership Returns

• Form 1065, U.S. Return of Partnership Income

• Form 1065-B, U.S. Return of Income for Electing Large Partnerships

1.8.7 Tax Exempt/Government Entity (TEGE) Returns

• Form 990, Return of Organization Exempt From Income Tax

• Form 990-EZ, Short Form Return of Organization Exempt From Income Tax

• Form 990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required To File Form 990 or 990-EZ

• Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as Private Foundation

• Form 1120-POL, U.S. Income Tax Return for Certain Political Organizations

1.9 Preparer Tax Identification Number (PTIN) Procedures

Beginning January 1, 2011, all paid preparers must have a Preparer Tax Identification Number (PTIN) before preparing returns. Also, all enrolled agents are required to have a PTIN. The cost for the original PTIN application is $64.25.

All PTINs expire on December 31 of each year. PTIN renewal open season begins approximately October 16 each year for the following year. The PTIN renewal fee is $63 and is required annually.

Additional information on the PTIN process can be found on IRS.gov.

1.10 Tax Relief in Disaster Situations

Special tax provisions may help businesses recover financially from the impact of disasters. For additional information, please access Disaster Assistance.

1.11 The Requirement to e-File

While millions of taxpayers e-file voluntarily, certain corporations, partnerships, employment tax and tax exempt organizations are required to e-file. In the past several years, the Department of the Treasury issued regulations requiring certain entities to e-file. Complete regulations and the history of the requirement to e-file can be found on the IRS.gov website at the following links.

1.11.1 Large Business and International (LB&I) Corporations

1.11.1.1 Form 1120-F Foreign Corporations

Treasury Decision (T.D.) 9363 provides authorization to extend the requirement to e-file for certain corporations, including Form 1120-F. For tax years ending on or after December 31, 2008, foreign corporations who file Form 1120-F and meet the T.D. 9363 criteria are required to e-file their return(s). Be sure to check the IRS.gov website for the latest information on the requirement to e-file this form.

1.11.2 Employment Tax Returns

1.11.2.1 Forms 941/941-PR/941-SS filers

Beginning 2017, Treasury Decision (T.D.) 9768 requires approved certified professional employer organizations (CPEOs) to file Schedule R (Form 941) and all other required schedules with Form 941 electronically, unless granted a waiver by the IRS Commissioner. The 1st quarter 2017 Form 941 will first be filed in April 2017. The IRS began accepting applications for CPEO certification on July 1, 2016. The CPEO program is a voluntary program; a person that does not wish to file Form 941, on magnetic media (electronically as prescribed by the IRS Commissioner) is not obligated to apply for or obtain certification as a CPEO. Although, this is a voluntary program, once certification is obtained as a CPEO the consequence of any failure to file these forms and associated schedules on magnetic media is the potential suspension or revocation of certification as a CPEO.

1.11.3 Estates and Trusts

Any tax preparer who anticipates preparing and filing 11 or more Forms 1040A, 1040EZ and 1041 during a calendar year must use IRS e-file. Section 6011(e)(3) of the Internal Revenue Code requires specified tax return preparers to electronically file certain federal income tax returns that they prepare and file for individuals, trusts or estates. Final Regulations provide further guidance on this requirement. See T.D. 9518. See also Most Tax Return Users Must Use IRS e-File on IRS.gov.

1.11.4 Excise Tax Returns

The American Jobs Creation Act statutorily requires that any taxpayer who files a Form 2290 with respect to 25 or more vehicles for any taxable period shall file such returns electronically.

Note: Corporations, partnerships or tax exempt organizations not meeting the criteria set out for their particular form in Treasury Decision (T.D.) 9363 and the Taxpayer Relief Act of 1997, Section 301.6011-3(a) provides that if a partnership with more than 100 partners is required to file a partnership return, the information required by the applicable forms and schedules must be filed electronically, unless a waiver from the electronic filing requirement has been granted. Returns filed electronically must be prepared in accordance with applicable revenue procedures or publications. Announcement 2002-3 excludes Fiscal Year filers for Tax Year 2001 only.

1.11.6 Tax Exempt/Government Entities (TEGE)

Required e-filing of Forms 990 and 990-PF for certain large tax-exempt organizations--For tax years ending on or after December 31, 2006, exempt organizations with $10 million or more in total assets may be required to e-file if the organization files at least 250 returns in a calendar year, including income, excise, employment tax and information returns. Private foundations and non-exempt charitable trusts are required to file Forms 990-PF electronically regardless of their asset size, if they file at least 250 returns annually. The electronic filing requirement does not apply to Form 8868. Both Part I, Automatic 3-Month Extension of Time, and Part II, Additional (Not Automatic) 3-Month Extension of Time, can be filed electronically or in paper format.

Annual Electronic Filing Requirement for Small Exempt Organizations, Form 990-N (e-Postcard)--Most small tax-exempt organizations whose annual gross receipts are normally $50,000 or less ($25,000 for tax years ending after December 31, 2007 and before December 31, 2010) are required to electronically submit Form 990-N, also known as the e-Postcard, unless they choose to file a complete Form 990 or Form 990-EZ instead.

There is no requirement to file Forms 990-EZ or 1120-POL electronically (e-file).

2 MeF Rules and Requirements

2.1 Participating in the IRS e-File Program

Section 5 of this publication provides details for Large Taxpayers who electronically file their own income tax return. For purposes of electronic filing, the IRS defines a Large Taxpayer as a business or other entity (excluding partnerships) with assets of $10 million or more, or a partnership with more than 100 partners (asset criteria does not apply to partnerships), which originates the electronic submission of its own return(s).

To begin e-filing tax returns or developing tax preparation software for the submission of returns to the IRS, you must apply and be accepted as an authorized IRS e-file Provider.

To apply for IRS e-file, you must first register with e-Services. Registration for e-services allows individuals to conduct business electronically with the IRS. To register for e-services, follow the guidance on the e-Services page on IRS.gov.

Effective Oct. 1, 2012, applications to become an IRS e-file Provider must be submitted online. The IRS will no longer accept paper e-file applications.

Once you have successfully registered, you will need to complete an online IRS e-file application for your business location. Section 1.4 of this publication and Publication 3112, IRS e-file Application and Participation, explain the different types of provider options as well as the roles and responsibilities of being an Authorized IRS e-file Provider. They also include information on passing suitability and other requirements.

Note: Software Developers with no other provider options (ERO, Transmitter, and so on) are not required to undergo suitability.

We recommend you complete the e-Services registration and IRS e-file Application process at least 45 days before you plan to e-file any returns. IRS also recommends that you have at least two Responsible Officials for back-up purposes.

In order to transmit returns directly to IRS, all providers must designate one or more representatives on the IRS e-file application as their MeF Internet Transmitter (IFA) and/or MeF System Enroller (A2A).

Revenue Procedure 2007-40, IRB 2007-26, which was published on June 25, 2007, supersedes Revenue Procedure 2005-60 (2005-35 IRB 449). Revenue Procedure 2007-40 informs Authorized IRS e-file Providers of their obligations to the IRS, taxpayers, and other participants in the IRS e-file program.

2.2 Maintaining Your IRS e-File Application

Important information on maintaining your IRS e-file Application:

1. Form Types -- IRS e-file applications must be current and must list all the form types (1120, 1065, 990, etc.) that you plan to originate and transmit to the IRS throughout the year. To avoid having returns reject because of an incorrect form type, IRS e-file Applications must be kept up to date. Please be aware of all the forms that each family includes, e.g., the 1120 family includes 1120, 1120S, 1120-F and 7004; the 1065 family includes 1065, 1065-B and 7004. In your e-file application, check the appropriate box for each of the forms you plan to file.

2. Maintain your IRS e-file Application--Update your IRS e-file application to remove any Principal, Responsible Official or Delegated User who no longer works with your organization and who is no longer assigned the designated responsibility on the application.

3. You must keep your e-Services password active to maintain your IRS e-file application. IRS recommends that you have at least two Responsible Officials for back-up purposes.

You should keep all other information (for example, addresses, phone numbers) on the application current to avoid having your ETIN/EFIN disabled.

2.3 Adherence to MeF Rules

All providers must adhere to IRS e-file rules and requirements to continue participation in IRS e-file. Certain requirements are included in Revenue Procedure 2007-40, IRB 2007-26, which was published on June 25, 2007, and supersedes Revenue Procedure 2005-60 (2005-35 IRB 449). Adherence to all rules and requirements, regardless of where published, is expected of all providers. Some rules and requirements are specific to the activities performed by the Provider and are included in appropriate parts of this publication. The following list of requirements, while not all-inclusive, applies to all Authorized IRS e-file Providers of corporate income tax returns, tax-exempt organization returns, excise returns, partnership returns, estate and trust returns and employment returns. These rules do not apply to Software Developers who do not engage in any IRS e-file activity (such as transmitting returns) other than software development.

Authorized IRS e-file Providers requirements:

• Maintain an acceptable cumulative error or reject rate,

• Adhere to the requirements for ensuring that tax returns are properly signed,

• Include the ERO's EFIN as the return EFIN for returns the ERO submits to an Intermediate Service Provider (ISP) or Transmitter,

• Include the ISP's EFIN in the designated ISP field in the electronic return record, and

• Submit an electronic return to the IRS with information that is identical to the information provided to the taxpayer.

2.4 Protecting Taxpayer Information: Gramm-Leach-Bliley Act of 1999 and Federal Trade Commission Rules

Title V of the Gramm-Leach-Bliley Act (GLB Act) of 1999 established the policy stating that "financial institutions" have an obligation to respect the privacy of and protect the security and confidentiality of their customers' nonpublic personal information. "Financial institutions" is defined in GLB Act--15 USC Subchapter II, as "any institution engaged in the business of providing financial services to customers who maintain a credit, deposit, trust, or other financial account or relationship with the institution," and are significantly engaged in financial activities. "Financial institutions" include tax preparation firms as well as their affiliates. Refer to 16 CFR 313.2 and 313.3 for more information on the definition of "financial institutions."

The GLB Act directed the Federal Trade Commission (FTC) to establish the Financial Privacy Rule and the Safeguards Rule. These rules apply to "financial institutions." The Financial Privacy Rule requires companies to give consumers privacy notices that explain the institutions' information-sharing practices. In turn, consumers have the right to limit some--but not all--sharing of their information. The Safeguards Rule requires "financial institutions" under FTC jurisdiction to have measures in place, such as a written information security plan, to keep customer information secure. The Safeguards Rule also applies to recipients of and service providers to "financial institutions." Thus, tax preparation firms that collect nonpublic personal information from customers have an obligation to make sure that their service providers safeguard the information.

FTC advises, "The Financial Privacy Rule does not supersede the restrictions in Section 7216. The GLB Act and the Agencies' implementing regulations do not authorize a `financial institution' to disclose nonpublic personal information in a way that is prohibited by some other law. Therefore, you [financial institutions] may not avoid the restrictions of Section 7216 by providing customers with an opt-out notice and a reasonable opportunity to opt out."

The GLB Act, the Financial Privacy Rule and the Safeguards Rule cover volunteer tax assistance services. The Financial Privacy Rule does not apply to businesses such as Payroll Service Providers whose customers are other businesses and not individual consumers.

For additional information please visit the Federal Trade Commission website where you can find documents, guidance, and useful information about the GLB Act, the Financial Privacy Rule and the Safeguards Rule.

2.5 Safeguarding MeF Data from Fraud and Abuse

2.5.1 Safeguarding Taxpayer Information

IRS Publication 4557, Safeguarding Taxpayer Data: A Guide for Your Business provides guidance on federal and state information security laws and regulations, as well as industry standards and best practices. Providers should read this publication to ensure they are handling taxpayer data in the manner prescribed by law.

IRS Publication 4600, Safeguarding Taxpayer Information: Quick Reference Guide for Business is a tri-fold brochure that summarizes and introduces Publication 4557. Businesses may use the brochure as an information security awareness and marketing tool.

If you have any comments on Publication 4557 or Publication 4600, please send an email to Safeguard.data.tp@irs.gov.

2.5.2 Safeguarding Against Fraud and Abuse

A potentially abusive return is a return that the taxpayer is required to file but contains inaccurate information that may lead to an understatement of a liability or the overstatement of a credit resulting in a refund to which the taxpayer may not be entitled.

Neither the IRS nor providers benefit when fraud or allegations of abuse tarnish the integrity and reputation of IRS e-file. Safeguarding of IRS e-file from fraud and abuse is the shared responsibility of the IRS and Authorized IRS e-file Providers. Providers must be diligent in recognizing and preventing fraud and abuse in IRS e-file.

Each Principal, Responsible Official and Delegated User is responsible for ensuring they conform to IRS e-file rules and requirements. Providers with problems involving fraud and abuse may be suspended or expelled from the IRS e-file program, may be assessed civil and preparer penalties, or may be subject to legal action.

To learn about the integrity of MeF data and security during transmission of MeF returns over the Internet access the Security During Transmission of MeF Returns Using the Internet page.

2.6 Disclosure of Tax Return Information

Under 26 CFR § 301.7216, disclosure of tax return information among Authorized IRS e-file Providers for the purpose of preparing a tax return is permissible. For example, an ERO may pass on tax return information to an ISP and/or a Transmitter for the purpose of having an electronic return formatted and/or transmitted to the IRS. However, if the tax return information is disclosed or used in any other way, an ISP and/or a Transmitter may be subject to the penalties described in § 301.7216 and/or the civil penalties in Internal Revenue Code (IRC) § 6713 for unauthorized disclosure or use of tax return information.

2.7 Submitting a Timely-Filed Electronic Tax Return

All prescribed due dates for filing paper income tax returns apply to electronic returns. All Providers must ensure that returns or applications for extensions of time to file are timely processed. See Section 3.28 for information concerning Electronic Postmarks.

An electronically filed return is not considered filed until the electronic portion of the tax return has been acknowledged by the IRS as "accepted" for processing. To be accepted, all e-filed returns must have a signature--either an attached PDF signature document (Form 8453 series) or through use of the Practitioner PIN method (Form 8879 series) or via the Reporting Agents PIN method for 94x family of forms (Form 8655). See Section 3.6, Signing an Electronic Return for more information.

Transmitters may provide electronic postmarks to taxpayers if the Transmitters adhere to the requirements in Section 3.28 of this publication. The receipt of an electronic postmark will provide taxpayers with confidence that they have filed their return timely. All requirements for signing the return, as well as resubmitting a rejected timely filed return, must be adhered to for the electronic postmark to be considered the date of filing.

2.8 Preparer Penalties

Preparer penalties may be asserted against an individual or firm meeting the definition of an income tax preparer under IRC § 7701(a)(36) and IRC § 301.7701-15. Preparer penalties that may be asserted under appropriate circumstances include, but are not limited to, those set forth in IRC § 6694, 6695, and 6713.

Under IRC § 301.7701-15(d), Authorized IRS e-file Providers are not income tax return preparers for the purpose of assessing most preparer penalties, as long as their services are limited to "typing, reproduction, or other mechanical assistance in the preparation of a return or claim for refund." If an ERO, ISP, Transmitter, or the tax preparation product of a Software Developer alters the return information in a non-substantive way, this alteration will be considered to come under the "mechanical assistance" exception described in IRC § 301.7701-15(d). A non-substantive change is a correction or change limited to a transposition error, misplaced entry, spelling error, or arithmetic correction.

If an ERO, ISP, Transmitter, or the tax preparation product of a Software Developer alters the return in a way that does not come under the "mechanical assistance" exception, the Authorized IRS e-file Provider may be considered "income preparers" for purposes of asserting income tax return preparer penalties. See IRC § 301.7701-15; Rev. Rul. 85-189, 1985-2 C.B. 341 which describes a situation in which the Software Developer was determined to be an income tax return preparer and subject to certain preparer penalties.

In addition to the above-specified provisions, the IRS reserves the right to assert all appropriate preparer and non-preparer penalties against an Authorized IRS e-file Provider as warranted. For further information about rules for tax preparers who are authorized to e-file, see Publication 3112.

2.9 Paperwork Reduction Act Notice

The collection of information contained in this publication has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545-1708.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. § 6103.

This information is required to implement IRS e-file and to enable taxpayers to file their corporate, partnership, excise, estate and trust, employment and tax-exempt organization income tax returns electronically. The information will be used to ensure taxpayers receive accurate and essential information regarding the filing of their electronic returns and to identify the persons involved in the filing of electronic returns. The collection of information is required to retain the benefit of participating in IRS e-file. The likely respondents are business or other for-profit institutions.

2.10 Provider Responsibilities in Obtaining, Handling, and Processing Return Information

Note: Details for those Large Taxpayers required to electronically file their own income tax return may be found in Section 5 of this publication. For purposes of electronic filing, the IRS defines a Large Taxpayer as a business or other entity (excluding partnerships) with assets of $10 million or more, or a partnership with more than 100 partners (asset criteria does not apply to partnerships), which originates the electronic submission of its own return(s).

2.10.1 Making Substantive Changes to the Return

An ERO who chooses to originate returns collected, but not prepared, becomes an "income tax return preparer" of the returns when, as a result of entering the data, discovers errors on the return that require substantive changes and then makes the changes to correct those errors. A non-substantive change is a correction limited to a transposition error, misplaced entry, spelling error or arithmetic correction. The IRS considers all other changes substantive, and an ERO becomes a tax return preparer when these changes are made. As such, the ERO may be required to sign the tax return as the tax return preparer.

A substantive change is one in which the "Total Income" amount differs by more than $150 or the "Taxable Income" amount differs by more than $100. If the electronic return data on a corporate income tax return is changed after the taxpayer signed the jurat, the taxpayer must sign a new Form 8453 (as applicable to the form type) if there is a substantive change in the Total Income or Taxable Income.

2.10.2 Providing a Copy of the Return to the Taxpayer

An ERO is required to submit an electronic return to the IRS with information that is identical to the information provided to the taxpayer and provide a complete copy of the return filed with the IRS to the taxpayer. The copy given to the taxpayer may be in any media acceptable to both the taxpayer and the Provider. A complete copy of a taxpayer's return consists of the electronic portion of the return, including all schedules, forms, PDF attachments and jurats, which were filed with the IRS. The copy provided to the taxpayer must include all information submitted to the IRS to enable the taxpayer to determine what schedules, forms, electronic files and other supporting material have been filed with the return. The copy, however, need not contain the taxpayer identification number of the Paid Preparer. The electronic portion of the return can be contained on a replica of an official form or on an unofficial form. On an unofficial form, however, data entries must be referenced to the line numbers or descriptions on an official form.

The taxpayer should be advised to retain a complete copy of the return and any supporting information. It is recommended to retain this information for a minimum of three years from the due date or extended due date of the tax return. This corresponds to the Statute of Limitations for that tax period, which is generally three years from the date the tax return is filed.

3 MeF Information Applicable to All Form Types

3.1 Preparing Your Return

Most corporations, partnerships and tax-exempt organizations have used software to prepare their returns for years. Whether you prepare your own return or have a third-party tax professional prepare it, you need to ensure that the software purchased has all the forms and schedules necessary to file your return. Not all software providers support all forms and schedules. It is the taxpayer's responsibility to verify the software provider chosen supports all the forms and schedules required, including the ability to file amended tax returns and/or short period returns, if necessary.

You can find Software Developers who have passed ATS on the Approved IRS e-File for Business Providers page.

3.2 Validating Your Return

Validating an e-file return involves running the diagnostics built into the software used to prepare a return. IRS provides Software Developers all the Business Rules and XML Schema requirements needed for each form and schedule to build into their software (see Exhibit 3). To ensure that the electronic return is complete and contains all required information, please follow the steps below:

1. Prepare the return using IRS-approved software that has all the forms and schedules necessary to file.

2. Check/validate the return to make sure it includes all forms, schedules, and attachments required to be filed with the return.

3. Check/validate the return to make sure it will be accepted by IRS.

4. Receive proper authorization to e-file the return.

5. Transmit the return.

When the return is transmitted to IRS, each of the XML Schema requirements and Business Rules are checked. If there are no errors, the return will be accepted. If the return fails any of the Business Rules or Schema requirements, the Transmitter receives an acknowledgement from the IRS with the error description(s). When third-party Transmitters are used, they must notify their clients of the rejection.

3.3 Return/Extension Due Date Tables

Links to the return due date and extended due date tables for each tax year can be found in each form family's tax year Schemas and Business Rules page on IRS.gov and Section 4.9 of this publication.

3.4 Short Period Returns for Corporate, Partnership and Estate and Trust Tax Returns

MeF accepts short period corporate, partnership and estate and trust tax returns.

3.4.1 Current Year Software is Available

When a taxpayer needs to file a short period return and the current year software is available, ensure the Tax Year in the Return Manifest and Return Header reflect the Tax Year of the Schemas being used (e.g., in the current year, use TY2016). Then, enter the actual Beginning and Ending Date of the short period return (e.g., 11/01/2016-01/31/2017).

3.4.2 Current Year Software is Not Available

In certain situations, a taxpayer may need to file a short period return before their software is ready for the next tax year. For instance, at the beginning of calendar year 2017, a taxpayer may need to file a short period TY2017 return with Tax Period Beginning Date 01/01/17 and Tax Period Ending Date 01/31/17. Such a return would normally be filed on TY2017 software, but in this scenario, the TY2017 software may have not been developed. In this case, the taxpayer may use TY2016 software. Ensure that the Tax Year in the Return Manifest and Return Header reflect the Tax Year of the TY2016 Schema and then enter the actual Beginning and Ending Dates of the short period return (i.e., 01/01/2017 - 01/31/2017). The return must reflect the laws applicable to the TY2017 return even though the Schema being used is a TY2016 Schema. When a short period corporate return is filed, regulations may require the taxpayer to attach Form 1128, provide an explanation of why the short period return is being filed, and/or cite the applicable Revenue Procedure (Rev. Proc.).

Note: Once current year TY 2017 software becomes available, it must be used to prepare the short period TY 2017 return.

If you use the Form 1128, attach it to the top-level of the return as a PDF file and describe it as "Form 1128 for Short Period Return."

If a Revenue Procedure is required to be cited on the tax return, then the Schema provides the ability to indicate "Pursuant to Rev. Proc. 2006-45" or "Pursuant to Rev. Proc. 2006-46."

To prevent processing delays, a number of indicators have been added to the 1041, 1120, 1120S and 1120-F Schemas, which include a list of valid reasons that should be used to explain why a short period return, is being filed. The indicators are listed in Table 3-1.

Table 3-1: Short Period Return Indicators

-----------------------------------------------

Schema Indicator

-----------------------------------------------

1041 ShortPeriodReason1041Ind

-----------------------------------------------

1120 shortPeriodReasonCd

-----------------------------------------------

1120-F shortPeriodReason11201120FInd

-----------------------------------------------

1120S shortPeriodReasonCd

-----------------------------------------------

If the reason for your short period return is not on this list for Forms 1120, 1120S or 1120-F, use the General Dependency to indicate the reason that a short period return is being filed.

The General Dependency may be submitted in the General Dependency XML document or in a PDF file. Provide the regulatory citation and explanation in the General Dependency PDF file with the description "Short Period Return Explanation."

Note: The values transmitted in the return must be labeled precisely using one of the following values. Failure to name these items exactly as shown will cause the return to reject with a Schema reject.

3.4.3 Valid Reasons for Forms 1041 Short Period Returns

• Form 1128 attached as a PDF

• IRS granted change in tax period

• Trust is changing tax period under IRC Reg. 1.442.1(c)

• IRS Regulation 1.502-76

• Section 806 of Tax Reform Act of 1986

• Tax Period month changing to 12

3.4.4 Valid Reasons for Forms 1120 or 1120-F Short Period Returns

• National Office Grant Letter

• Filed under Revenue Procedure 2006-45 or 2006-46

• Notation referring to Section 898 (c)((1) A)

• Election Change in taxable year under Section 898 (c)(2)

• Section 1398 Election

• Second Short Year after Section 1398 Election

• Section 444 Election Terminated

3.4.5 Valid Reasons for Form 1120S Short Period Returns

• National Office Grant Letter

• Filed Under Revenue Procedure 2006-46

• S Election Termination or revocation is checked

• Statement on Qualifying Disposition under Reg. 1.1368-1(g)(2)(i)

• Statement on Termination of Shareholders Interest under Reg. 1377(a)(2) and 1.1377-(1)b

• Statement referring to S Election and taxpayer is changing to 12/31 calendar year end

• Statement the S corporation is coming out of consolidation

• Statement the corporation is a qualified sub chapter S subsidiary

• Section 444

• 1120S, Box A contains a date which matches the Tax Period Begin Date

• Section 1398 Election

• Second Short Year after Section 1398 Election

3.4.6 Forms 1065 and 1065-B Technical Termination Returns

Section 708(b)(1)(B) provides that a termination occurs where, "within a 12-month period, there is a sale or exchange of 50% or more of the total interest in partnership capital and profits." This is known as a type B termination or technical termination. Returns should be prepared for the appropriate tax period reflecting the respective partnership interests during that time. The final return for the period prior to the change in partner interest should have the "Technical Termination" and the "Final Return" checkbox marked. A second return will also be filed to reflect the initial return of the new partner(s)' interest(s) and should have the "Technical Termination" and the "Initial Return" checkbox marked. For further information, please see the Form 1065 instructions.

3.5 Superseding and Amended Returns

The MeF system processes both superseding and amended returns for Forms 1041, 1120, 1120S, 1120-F, 1065 and 1065-B. For Forms 990, 990-EZ, 990-PF and 1120-POL, MeF only processes amended returns. The table below indicates the form types for which superseding and amended returns can be processed through MeF (A=amended return, S=superseding return).

Table 3-2: Processed Superseding and Amended Returns

-------------------------------------------------------------------

Tax 94x 990

Year Series Series 1041 1120 1120S 1120-F 1065 1065-B 2290

-------------------------------------------------------------------

2014 A A/S A/S A/S A/S A/S A/S A

-------------------------------------------------------------------

2015 A A/S A/S A/S A/S A/S A/S A

-------------------------------------------------------------------

2016 A A/S A/S A/S A/S A/S A/S A

-------------------------------------------------------------------

2017

-------------------------------------------------------------------

If a taxpayer is or was required to e-file an original return in tax years ending on or after December 31, 2014, and the taxpayer needs to file an amended or superseding return, for that tax year, the amended or superseding return must also be e-filed.

Any taxpayer who has received an approved waiver from IRS to file on paper is exempted from this requirement. For tax years 2006 through 2013, which are no longer available on MeF, if the taxpayer was previously required to e-file an original return and is now filing an amended return, they are exempt from the requirement to e-file and should file using the existing paper process. In this situation, the taxpayer is not required to request a waiver.

Partnerships who are required to file an amended return electronically for a tax year no longer supported by MeF must contact the e-help Desk at 1-866-255-0654. The taxpayer should indicate they are required to file electronically an amended return, but MeF no longer supports the tax year for which they are filing the amended return. Therefore, they are requesting a waiver from the requirement to file the amended return electronically.

Note: Corporate amended returns with carryback claims may be e-filed as long as the carryback claim box is checked.

3.5.1 Superseding Returns

A superseding return is a return filed subsequent to the originally filed return but filed within the filing period, including extensions. A superseding return must be a complete XML filing of the entire return, with all required forms, schedules and attachments (XML or PDF, if applicable).

Note: A "Superseding Return" checkbox is available on certain MeF business returns; however, this checkbox is not available on their paper counterparts.

Access corporate superseding returns for more information.

For partnership returns, see Guidance for Amended Partnership Returns.

To file a superseding Form 990, 990-EZ, 990-PF, 1120-POL, and 2290, within the filing period (including extensions), the taxpayer should check the "Amended Return" box in the relevant Schema. This eliminates the possibility of receiving a rejection for a duplicate filing.

For Forms 1041, 1065, 1065-B, 1120, 1120S, 1120-F, a taxpayer filing a superseding return must select the Superseded Return checkbox (designation) in the software or the return will reject as a duplicate filing. All of the Business Rules enforced for e-filing original returns are also enforced for superseding returns.

3.5.2 Amended Returns

An amended return is a return filed subsequent to the originally filed or superseding return and filed after the expiration of the filing period (including extensions).

Note: An "Amended Return" checkbox is available on certain MeF business returns; however, this checkbox may not be available on their paper counterparts.

When amending Form 1120, 1120S, 1120-F, 1065, and 1065-B returns, the taxpayer should include the main form and any forms and schedules necessary to support the changes that were made. When amending Form 1041, complete the entire return and correct the appropriate lines with the new information.

• For Form 1120, 1120S and 1120-F amended returns, only a subset of Business Rules relevant to the corresponding original returns will be enforced. This subset is posted on IRS.gov.

• For 1065, 1065-B and 1041 amended returns, all of the Business Rules for e-filing original returns will be enforced.

Beginning in Tax Year 2011 and subsequent years, partnerships who are required to file a Form 8082 along with their amended return will need to:

1. Complete the Form 8082 available electronically, and

2. Attach the "GeneralDependencySmall" to indicate if

a. You are a Tax Matters Partner (TMP) filing an Administrative Adjustment Request (AAR) on behalf of the pass through entity and you are or not requesting a substituted return treatment.

b. You are an Electing Large Partnership

Most taxpayers who e-file an amended return have previously e-filed the underlying original tax return. In these situations, the easiest way to e-file an amended return is simply to update the original return for the changed items. Once this has been completed, attach the required XML document (see below) and any other supporting explanations and e-file the amended return, ensuring that the Amended Return checkbox is selected.

Amended returns require at a minimum:

1. The corrected Form 1120, 1120S, or 1120-F return, completed in its entirety (all pages of the return), with the Amended Return checkbox selected.

2. All forms, schedules and attachments that changed or that support changes on the amended Form 1120, 1120S, or 1120-F including any subsidiary returns (if changed) and the information to support those changes.

3. One of the following:

• For Form 1120--Attach to the amended Form 1120, the XML Form 1120X completed through Part I, line 10 or 11, as applicable, and Part II with the line number of each amended item, the corrected amount or treatment of the item, and an explanation of the reasons for each change.

• For Forms 1120S and 1120-F--Attach to the amended Form 1120S or Form 1120-F, the XML document, AmendedReturnChanges, which identifies the line number of each amended item, description, the amount on the previous return, the amount on the amended return, and an explanation of the reasons for each change.

4. A signed signature document, Form 8453-C/S/I, as applicable or use of a Practitioner's PIN.

5. Appropriate forms to make a payment, request a refund or request a credit carryover to another year.

For Forms 1041, 1065, 1065-B, 990, 990-EZ, 990-PF, 1120-POL, and 2290, there is an "Amended Return" box in the XML Schema. For these amended returns, a subset of Business Rules is currently not in place. In order to pass the Business Rules for these forms, you need to complete the entire return and all applicable fields.

An amended return for Form 720 (Form 720X) must be filed using the existing paper procedures.

For information on Form 1065/1065-B amended returns, see Guidance for Amended Partnership Returns.

3.5.3 Form 2290 VIN Correction

For Form 2290 a VIN Correction is treated the same as an Amended Return. If you must correct a VIN(s) previously reported on an e-filed Form 2290 due to a typographical error (transposed or incorrectly entered characters), a corrected Form 2290 must be filed with the IRS. The "VIN Correction" checkbox located on page 1 of the Form 2290 must be checked and the Schedule 1 must be completed using the corrected VIN(s). An explanation identifying which VIN(s) are being corrected from the original accepted e-filed return and why the VIN(s) are being corrected must be included. There are two (2) ways this can be done:

• Attach a binary attachment (.pdf), or

• Use the General Dependency Medium -- the Description Element in the General Dependency Medium Schema should be identified as "VIN Correction."

3.6 Signing an Electronic Return

A tax return filed through MeF is a composite of electronically transmitted data. As with any income tax return submitted to the IRS on paper, an electronic income tax return must be signed by an authorized tax return signer of the entity type (corporation, partnership, estates and trusts, employment taxes or exempt organization), the ERO (if applicable) and the paid preparer (if applicable). If the electronic return does not have an appropriate signature (see below), the return will be rejected. Treasury Decision (T.D.) 9300 provides guidance on signing requirements for each return type.

The MeF system requires taxpayers and providers to use specific signature methods for signing electronic returns. Available options are the Practitioner Personal Identification Number (PIN) method using Form 8879 or the Scanned Form 8453 method. Reporting agents should use the PIN method with Form 8655.

3.6.1 Practitioner Personal Identification Number (PIN) Signature Method--Form 8879

The Practitioner PIN option can only be used if the taxpayer uses an ERO. Follow the processes below to sign the return electronically:

• The ERO contacts the taxpayer and requests they choose a five-digit, self-selected PIN as their electronic signature. The taxpayer can authorize the ERO to input this in the software (by phone, fax, etc.), or they can come to the ERO's office and enter the PIN directly into the software.

• Each Form 8879 is tailored to a unique parent form (see Table 3-3). The ERO completes and prints out the appropriate Form 8879 and includes their PIN and the taxpayer's self-selected PIN. The ERO's electronic signature is comprised of an 11-digit PIN. The first six positions of the PIN are made up of the ERO's Electronic Filing Identification Number (EFIN) and the next five positions are made up of numeric characters the ERO chooses.

Note: The ERO must sign and complete the requested information in the "Declaration of Electronic Return Originator [ERO]" section after thoroughly reading the declaration. An ERO may authorize members of its firm or designate employees to sign for the ERO, but the ERO is still responsible for all electronically filed returns originated by its firm. EROs do not have to disclose their Employer Identification Number (EIN) or Social Security Number (SSN) on the copies they provide to taxpayers.

• If the return was prepared for a fee, the ERO's responsibility is to identify the paid preparer in the appropriate fields of the electronic return record for transmission. The ERO should complete the Form 8879 with the information received from the taxpayer. The paid preparer should keep a copy of the return approved and signed by the taxpayer using the Form 8879.

• The ERO must retain the Form 8879 for three years from the return due date, extended due date, or the IRS received date, whichever is later. The ERO should provide a copy of the Form 8879 to the taxpayer, along with other return data as required. Do not mail these forms to the IRS.

As the ERO completes the XML Schema return header, the following fields are required for the Form 1120 family practitioner PIN method, or the return will be rejected.

• Practitioner PIN

• PIN Entered By Code

• Name of Officer

• Title of Officer

• Taxpayer PIN/Fiduciary PIN

• Date Signed

Note: Form 1041 return header Schema does not include Name of Officer or Title of Officer. For the Form 1041, the taxpayer PIN is replaced by Fiduciary PIN. Other Form families may have other specific fields that are required to be completed.

Signature authorization is made on the following Forms 8879 for corporate, partnership, employment, estate or trust, tax-exempt organizations and excise tax filers (see Table 3-3). The forms are available for downloading on the Forms and Publications page.

Table 3-3: PIN Signature Method Authorization Form

----------------------------------------------------------------------

Form Signature Authorization Form

----------------------------------------------------------------------

940, 940-PR, 941, 8879-EMP (.pdf),

941-PR, 941-SS, 943, IRS e-file Signature for Forms 940, 940-PR,

943-PR, 944 and 945 941, 941-PR, 941-SS, 943, 943-PR, 944, and

945

----------------------------------------------------------------------

990, 990EZ, 990-PF, 8879-EO (.pdf),

1120-POL and 8868 IRS e-file Signature Authorization for an

Exempt Organization

----------------------------------------------------------------------

1041 8879-F (.pdf),