What additional information is available for corporations that prepare their own returns

Corporations that prepare their own returns should review IRS Publication 4163, which provides comprehensive guidance on the procedures and requirements for electronic filing of corporate income tax returns. Here are some key points from the publication:

1. Electronic Filing Requirements:
   • Corporations must use IRS-approved tax preparation software to prepare and file their returns electronically.
   • The software must support all the forms and schedules required for the corporation's tax return.
2. Registration and Application:
   • Corporations must register for e-Services and complete the IRS e-file Application to obtain an Electronic Filing Identification Number (EFIN) and, if transmitting directly, an Electronic Transmitter Identification Number (ETIN).
   • Responsible Officials and Delegated Users within the corporation must individually register with e-Services.
3. Transmission Methods:
   • Corporations can choose to transmit their returns directly to the IRS using the Internet Filing Application (IFA) or Application-to-Application (A2A) transmission channels.
   • Alternatively, corporations can use a third-party transmitter or an online provider to transmit their returns.
4. Record Keeping:
   • Providers must retain copies of signed IRS e-file Consent to Disclosure forms, the complete electronic portion of the return, acknowledgment files for accepted returns, and all extensions until the end of the calendar year in which the return was filed or nine months after a fiscal year return was filed, whichever is later.
   • Form 8879-CORP and other related forms must be retained for three to four years from the due date of the return, extended due date, or the IRS received date, whichever is later.
5. Acknowledgments and Alerts:
   • The IRS electronically acknowledges the receipt of all transmissions and returns. Each return is either accepted or rejected for specific reasons.
   • Alerts identify return conditions that do not result in a rejection but are for informational purposes only.
6. Transmission Perfection Period:
   • If a return is rejected, there is a 10-day Transmission Perfection Period to correct and retransmit the return. For Form 7004 and 8868, the perfection period is 5 calendar days.
   • The perfection period is not an extension of time to file but a period to correct errors in the file.
7. Special Instructions for Consolidated Returns:
   • MeF requires approved tax preparation software for reporting data for each subsidiary return. The software must allow taxpayers to create a separate "stacked return" for the parent and each subsidiary return.
   • Supporting data must be included in the tax preparation software or attached as scanned PDF files.
8. General Dependency:
   • The General Dependency Schema allows the submission of information not specified in a predefined Schema. There are three General Dependencies available: GeneralDependency, GeneralDependencyMedium, and GeneralDependencySmall.
9. Electronic Postmark:
   • A Transmitter may provide an electronic postmark to taxpayers, showing the date and time the return was received at the Transmitter's host computer. The electronic postmark is adjusted to the taxpayer's time zone to determine the actual time.
10. Ensuring Taxpayer Data Integrity:
    • The IRS computes a checksum value to ensure the size of the file transmitted matches the file received. Discrepancies must be addressed by contacting the Transmitter.

By following these guidelines and ensuring compliance with IRS requirements, corporations can effectively prepare and file their income tax returns electronically. For detailed information, corporations should refer to IRS Publication 4163.

Sources:
Publication 542 (1/2024)
Instructions for Form 1120 (2023)
Publication 17 (2023)
Publication 4163 (12/2023)
Publication 551 (12/2022)