To ensure a corporation is ready for filing an income tax return electronically, the actions required depend on whether the corporation will use a tax professional or prepare the return in-house.
- Using a Tax Professional:
- Verify IRS Authorization: Ensure the tax professional is an IRS Authorized e-file Provider.
- Discuss Responsibilities: Discuss with the tax professional their responsibilities to "originate" the electronic return.
- Software Compatibility: Confirm that the tax professional uses software that fully supports the corporation's e-file requirements.
- Signature Requirements: The Corporate Officer will need to sign the electronic return using the appropriate Form 8453 or Form 8879.
- Preparation Process: Discuss any changes in internal tax preparation processes due to the requirement that the entire electronic return must be sent to the IRS in one electronic file.
- Preparing In-House:
- Review IRS Guidelines: Review the issues discussed in Section C of the IRS guidelines and determine if the corporation meets the IRS definition of a "Large Taxpayer."
- Software Vendor Discussion: Discuss the various electronic filing options with the software vendor to ensure the software supports the corporation's e-file requirements.
- IRS e-file Application: Register and complete the IRS e-file Application if the corporation plans to prepare and file its own return electronically.
- Electronic Signature: Ensure the Corporate Officer is prepared to sign the electronic return using the appropriate Form 8453 or Form 8879.
By following these steps, a corporation can ensure it is prepared to file its income tax return electronically, whether using a tax professional or preparing the return in-house.
Sources:
Publication 4163 (12/2023)
Publication 4164 (10/2023)
Instructions for Form 1120 (2023)
Publication 4452
