A Large Taxpayer can originate the electronic submission of its own returns by following one of three methods:
- Direct Transmission: The Large Taxpayer transmits the return(s) directly to the IRS without assistance from another entity. This requires the taxpayer to register and apply as a Large Taxpayer to obtain an Electronic Transmitter Identification Number (ETIN) to transmit the return and an Electronic Filing Identification Number (EFIN) to originate the return.
- Online Provider: The Large Taxpayer transmits their return through an Online Provider using the Form 8453 Scanned Signature method. The taxpayer prepares and sends their return to a Provider, who then acts as an Online Provider to transmit the return to the IRS. In this case, the Large Taxpayer does not need to register and apply as a Large Taxpayer, as the Online Provider uses their ETIN and EFIN on the taxpayer’s behalf.
- Third-Party Transmitter: The Large Taxpayer prepares and sends their return(s) to a Provider, who then transmits it to the IRS. The taxpayer must register and apply as a Large Taxpayer to obtain an EFIN to originate the return.
In all cases, the Large Taxpayer must ensure that the electronic return data is converted into the format defined by the IRS for electronic filing. This process involves using tax preparation software approved for electronic filing, which provides the necessary instructions to originate the electronic submission of the return and authorize the filing via IRS e-file.
Sources:
Rev. Proc. 2007-40
Rev. Proc. 2022-32
Publication 4163 (12/2023)
Publication 4164 (10/2023)
IRM Part 3. Submission Processing. Chapter 42. Electronic Tax Administration. Section 4. IRS e-file for Business Tax Returns
Publication 3112 (11/2023)
