Submitting the Electronic Return to the IRS
Once signed, an ERO must originate the electronic submission of a return as soon as possible. EROs must not electronically file individual income tax returns prior to receiving Forms W-2, W-2G or 1099-R. If the taxpayer is unable to secure and provide a correct Form W-2, W-2G, Certain Gambling Winnings, or 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., the ERO may electronically file the return after the taxpayer completes Form 4852, Substitute for Form W-2, Wage and Tax Statement or 1099-R, Distributions from Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., in accordance with the use of that form. If Form 4852 is used, the non-standard W-2 indicator must be included in the record, and the ERO must maintain Form 4852 in the same manner required for Forms W-2, W-2G and 1099-R.
An ERO must ensure that stockpiling of returns does not occur at its offices. Stockpiling is:
- collecting returns from taxpayers or from another Authorized IRS e-file Provider prior to official acceptance in IRS e-file; or
- after official acceptance to participate in IRS e-file, stockpiling refers to waiting more than three calendar days to submit the return to the IRS once the ERO has all necessary information for origination
The IRS does not consider returns held prior to the date that it accepts transmission of electronic returns stockpiled. This includes when the IRS is not able to accept specific returns, forms, or schedules until a date later than the start-up of IRS e-file due to constraints such as late legislation, programming issues, etc. EROs must advise taxpayers that it cannot transmit returns to the IRS until the date the IRS accepts transmission of electronic returns.
As required in the 2012 schemas, Internet Protocol (IP) information of the computer the ERO uses to prepare the return (or originate the electronic submission of collected returns) must be included in all individual income tax returns. The required Internet Protocol information includes:
- Public/routable IP address
- IP date
- IP time
- IP time zone
With many different ERO e-filing business models, the computer used to prepare (or originate the electronic submission of collected returns) may not have a public/routable IP address. If the computer used for preparation (or origination of the electronic submission of collected returns) is on an internal reserved IP network, then the IP address should be the public/routable IP address of the computer used to submit the return. If the computer used for preparation (or origination of the electronic submission of collected returns) is used to transmit the return to the IRS, then the IP address should be the public/routable IP address of that computer. If it is not possible to capture the public/routable IP address, then the ERO or software may have to hard code the IP address into each return.
The IRS will reject individual income tax returns e-filed without the required IP address. Any return received by the IRS containing a private/non-routable IP address will be flagged in the Acknowledgement File with an “R” in the Reserved IP Address Code field of the ACK key record indicating that a reserved IP address is present for the return.
Submission of Paper Documents to the IRS
IRS e-file returns must contain all the same information as returns filed completely on paper. EROs are responsible for ensuring that it submits to the IRS all paper documents required to complete the filing of returns. Attach all appropriate supporting documents that the IRS requires to the Form 8453 and send them to the IRS. Refer to page 2 of Form 8453 for the current mailing address. Below is a list of these supporting documents (Exception: For MeF, refer to What Practitioners Need to Know About Modernized e-File (MeF)):
- Contributions of Motor Vehicles, Boats, and Airplanes">Form 1098-C, Contributions of Motor Vehicles, Boats, and Airplanes (or equivalent contemporaneous written acknowledgement);
- Power of Attorney and Declaration of Representative">Form 2848, Power of Attorney and Declaration of Representative (only for an electronic return signed by an agent);
- Application for Change in Accounting Method">Form 3115, Application for Change in Accounting Method;
- Historic Preservation Certification Application (Part 2 - Description of Rehabilitation)">Form 3468 - attach a copy of the first page of NPS Form 10-168a, Historic Preservation Certification Application (Part 2 - Description of Rehabilitation), with an indication that it was received by the Department of the Interior or the State Historic Preservation Officer, together with proof that the building is a certified historic structure (or that such status has been requested);
- Form 4136 - attach the Certificate for Biodiesel and, if applicable, Statement of Biodiesel Reseller or a certificate from the provider identifying the product as renewable diesel and, if applicable, a statement from the reseller;
- International Boycott Report">Form 5713, International Boycott Report;
- Noncash Charitable Contributions">Form 8283, Noncash Charitable Contributions, Section A, (if any statement or qualified appraisal is required) or Section B, Donated Property, and any related attachments (including any qualified appraisal or partnership Form 8283);
- Release of Claim to Exemption for Child of Divorced or Separated Parents">Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents (or certain pages from a post-1984 decree or agreement, see instructions);
- Information Return of U.S. Persons With Respect to Foreign Disregarded Entities">Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities;
- Form 8864, Biodiesel and Renewable Diesel Fuels Credit - attach the Certificate for Biodiesel and, if applicable, Statement of Biodiesel Reseller or a certificate from the provider identifying the product as renewable diesel and, if applicable, a statement from the reseller;
- Health Coverage Tax Credit">Form 8885, Health Coverage Tax Credit, and all required attachments;
- Continuation Sheet for Schedule D-1, Continuation Sheet for Schedule D (Form 1040) (or a statement with the same information), if you elect not to include your transactions on the electronic short-term capital gain (loss) or long-term capital gain (loss) records; and,
State income tax returns in the Federal/State Program often require that paper documents be prepared and forwarded to state tax administration agencies. Be sure to follow each state’s rules when state income tax returns are prepared.