Tax News

CCH (cch.taxgroup.com) reports:

The IRS has issued final regulations requiring electronic filing of returns, pursuant to Code Sec. 6011(e), by corporations and organizations required to file returns under Code Sec. 6033. The final regulations, which were adopted as revised, remove the temporary regulations under Code Secs. 6011, 6033, and 6037. The regulations are effective and applicable November 13, 2007.
The final regulations apply to filers of the Form 1120, U.S. Corporation Income Tax Return, and Form 1120S, U.S. Income Tax Return for an S Corporation, series, as well as the Form 990, Return of Organization Exempt From Income Tax, series. At this time, the IRS is not ready to accept certain types of Forms 1120, 1120S and 990 but will announce when they have the capability to do so. Until that time, these types of filers are excluded from the requirement. The list of filers required to file electronically and those currently excluded from the requirement will be posted on the IRS's website and in various publications. Additionally, the proposed regulation, NPRM REG-130671-04, provided that the electronic filing requirement does not apply to corporations, S corporations and exempt organizations that file fewer than 250 returns during the calendar year. The final regulations further provide that, in the case of a short year return, a taxpayer is required to file electronically if, during the calendar year which includes the short taxable year, the taxpayer is required to file at least 250 returns of any type.
Furthermore, the final regulations did not incorporate the transitional rule included in as it was believed that compliance with the final regulations would not cause undue financial hardship to the affected taxpayers. However, Notice 2005-88, 2005-2 CB 1060, provides for a waiver of the requirement in the event of hardship, such as a technology problem. The decision whether to grant a waiver will be decided on a case-by-case basis.
T.D. 9363, 2007FED ¶47,072
Other References:
Code Sec. 6011
CCH Reference - 2007FED ¶35,125BC
CCH Reference - 2007FED ¶35,125CB
Code Sec. 6033
CCH Reference - 2007FED ¶35,423C
CCH Reference - 2007FED ¶35,424C
Code Sec. 6037
CCH Reference - 2007FED ¶35,521C
CCH Reference - 2007FED ¶35,522C
Tax Research Consultant
CCH Reference - TRC FILEBUS: 12,300
CCH Reference - TRC FILEBUS: 12,302