If a corporation required to e-file prepares its own return, what extra steps are required in order to comply with the requirements to file an electronic return

If a corporation required to e-file prepares its own return, the following extra steps are required to comply with the requirements to file an electronic return:

1. Determine if the Corporation is a Large Taxpayer:
   • The corporation must determine if it meets the IRS definition of a "Large Taxpayer." A Large Taxpayer is defined as a business or other entity (excluding partnerships) with assets of $10 million or more, or a partnership with more than 100 partners (asset criteria does not apply to partnerships).
2. Register and Apply for IRS e-File:
   • The corporation must register with eServices and complete an IRS e-file application. This involves designating one or more Responsible Officials and Delegated Users who will manage the e-filing process. The application process should be completed at least 45 days before e-filing returns, and at least 60 days if the corporation plans to self-transmit.
3. Obtain Necessary Identification Numbers:
   • The corporation must obtain an Electronic Filing Identification Number (EFIN) and an Electronic Transmitter Identification Number (ETIN) if it plans to transmit returns directly to the IRS. These numbers are necessary to originate and transmit returns.
4. Select a Transmission Method:
   • The corporation must decide on a transmission method. Options include:
     • Direct Transmission: Transmitting the return directly to the IRS without assistance from another entity.
     • Third-Party Transmitter: Using a third-party provider to transmit the return.
     • Online Provider: Using an online provider's software to create and transmit the return.
5. Conduct a Communication Test:
   • If the corporation chooses to self-transmit, it must conduct a one-time communication test to verify connectivity with the IRS. This test ensures that the corporation can successfully transmit return data to the IRS.
6. Ensure Software Compliance:
   • The corporation must ensure that the software used for preparing and transmitting the return complies with IRS specifications. The software should support all necessary forms and schedules required for the return.
7. Prepare and Validate the Return:
   • The corporation must prepare the return using IRS-approved software, validate the return to ensure it includes all required forms, schedules, and attachments, and check for any errors that could cause the return to be rejected.
8. Sign the Return Electronically:
   • The return must be signed electronically by an authorized tax return signer of the entity type. This can be done using the Practitioner Personal Identification Number (PIN) method or by attaching a scanned Form 8453 series signature document.
9. Transmit the Return:
   • The corporation must transmit the return to the IRS using the selected transmission method. The return must be transmitted on or before the due date, including extensions.
10. Retrieve Acknowledgements:
    • After transmitting the return, the corporation must retrieve the IRS acknowledgement to confirm whether the return was accepted or rejected. If the return is rejected, the corporation must correct any errors and retransmit the return within the specified perfection period.

By following these steps, a corporation can ensure compliance with the requirements to file an electronic return.

Sources:
Publication 4163 (12/2023)
Publication 4164 (10/2023)
Rev. Proc. 2007-40
§ 301.6011-5. Required use of electronic form for corporate income tax returns.