LMSB Commissioner Letter to Tax Managers of Large Corporations
Department of the Treasury
Internal Revenue Service
Washington, DC 20224
Commissioner, Large and Mid-Size Business Division
October 5, 2005
Dear Tax Manager,
I am writing to advise you of recent developments that require certain large corporations to file their income tax returns electronically. It is important that you understand how these new “e-file” requirements may affect your company.
In January 2005 the Internal Revenue Service and Department of the Treasury issued regulations that require corporations with assets of $50 million or more, and that file 250 or more returns per year (including income tax, excise and employment tax, as well as information returns such as W-2s and 1099s) to electronically file their Forms 1120 or 1120S beginning with tax periods ending on or after December 31, 2005.
If your corporation is affected by these electronic filing requirements, you should keep in mind the following important points:
• If you will use a tax professional to prepare your income tax return, you should check with them early and ensure they are an IRS Authorized e-file Provider.
• If you or your staff will prepare your corporation’s income tax return, you should discuss electronic filing with your software vendor immediately. Then, within the next few weeks, you should begin the IRS registration and application steps required for electronic filing of income tax returns.
IRS has electronic filing information and guidance readily available on our internet site, www.irs.gov . Simply click on the “e-File” logo, and then click on “e-file for Large and Mid-size Corporations.” Of particular importance to corporations that prepare their own income tax returns is a guide you can link to from the “e-file for Large and Mid-size Corporations” page, entitled “IRS e-file for Large Taxpayers Filing Their Own Corporate Income Tax Return”. This guide provides detailed information for completing the IRS registration and application process.
We realize that the change from paper to electronic filing is not without its challenges. Over the past several months IRS officials have been meeting with corporate taxpayer representatives, tax and accounting organizations and tax software vendors to identify and address questions and concerns about electronic filing. We will continue working with stakeholders and updating our web site with information as it develops.
If you do not find answers to your questions on the “e-file for Large and Mid-size Corporations” page of irs.gov, please feel free to send your questions by e-mail to firstname.lastname@example.org.
Please accept my thanks for your attention to this important matter and your support in improving America’s tax system. We look forward to your corporation joining the thousands of others that voluntarily filed electronic returns this year.
Deborah M. Nolan