March 30, 2007
Dear Form 1065-B Filer, Name Control:
The purpose of providing you this letter is twofold. The first is to make you aware of or remind you of your e-filing obligation that generally requires partnerships with more than 100 partners (Schedules K-1) to file their Form 1065-B, U.S. Return of Income for Electing Large Partnerships, electronically. It should be noted that this e-filing requirement was originally part of the Taxpayer Relief Act of 1997 (Section 1224) and became effective for partnership returns with taxable years ending on or after December 31, 2000.
Secondly, we would like to introduce to you IRS' new Modernized e-File (MeF) system which now accepts Form 1065-B tax returns. MeF is IRS' new e-filing platform which will improve the e-file experience for taxpayers and practitioners.
In the past, Form 1065-B filers have been excluded from the electronic filing requirement because the current Partnership e-File System did not support the Form 1065-B. On January 8, 2007, MeF began processing Form 1065-B for 2006 tax returns. Tax year 2006 Form 1065-B returns filed after January 7, 2007, can either be filed electronically using the MeF system, or can be filed on paper.
It is important to note that Form 1065-B must be filed electronically using the MeF system beginning with tax years ending on or after December 31, 2007.
To assist you in preparing your partnership return, we offer the following important points.
- If you use a tax professional to prepare your income tax return, please check with them to ensure they have the proper software and that they are an IRS Authorized e-file Provider that supports the MeF system.
- If you decide to prepare your own income tax return, we encourage you to discuss the electronic filing options (e.g., MeF) with your software vendor to ensure that they support your e-filing requirements. You may also need to take application and registration steps required to transmit electronic returns directly to IRS.
- If you elect to file your tax return electronically, you will need to include on your return your name control, which is located at the top of this letter. Please make it available to your e-file provider.
For further information or guidance, please visit IRS' web site, www.irs.gov. Simply click on the "Businesses" icon, then "Partnership" icon, and then on "Modernized e-file (MeF) for Partnerships."
Deborah M. Nolan, Commissioner, Large and Mid-Size Business Division
Kathy K. Petronchak, Commissioner, Small Business/Self-Employed Division