What compliance is necessary to e-file tax returns?

Electronic Filing of Tax Returns Requirements

General Requirements for Electronic Filing

1. Access to Electronic Filing System: Taxpayers must have access to the appropriate electronic filing system, such as the IRS e-file system or a state's specific e-filing portal.
2. Compatible Computer: A computer that meets or exceeds the electronic filing system's minimum standards is necessary.
3. Internet Connection: A stable internet connection is required to access the e-filing system and submit the tax returns.
4. Tax Preparation Software: Many electronic filings require the use of IRS-approved or state-approved tax preparation software that can prepare, calculate, and transmit the tax return data electronically.
5. Taxpayer Identification: Valid taxpayer identification numbers (TINs), such as Social Security Numbers (SSNs) or Employer Identification Numbers (EINs), must be used.
6. Electronic Signature: Taxpayers must sign the returns electronically, which can be done using a Personal Identification Number (PIN) or other accepted methods of electronic signature verification.
7. Payment Method for Taxes Due: If there is a balance due, taxpayers must provide payment information, which could include direct debit from a bank account or credit card information.

Specific Requirements for Different Tax Forms

1. Form 2290 (Heavy Highway Vehicle Use Tax Return): Must be filed electronically if reporting 25 or more vehicles for any taxable period.
2. Form 990 (Return of Organization Exempt from Income Tax): Tax-exempt organizations with $10 million or more in total assets and filing at least 250 returns annually must file electronically.
3. Form 990-T (Exempt Organization Business Income Tax Return): Must be filed electronically for tax years ending December 2020 and later with a due date on or after April 15, 2021.
4. Form 4720 (Return of Certain Excise Taxes): Private foundations must file electronically for tax years ending December 2020 and later with a due date on or after July 15, 2021.

State-Specific Requirements

1. Puerto Rico: For filing the "Planilla de Contribución Sobre Ingresos de Individuos" (Individual Income Tax Return), taxpayers can use the SURI online system (https://suri.hacienda.pr.gov) to file returns and request extensions.
2. Florida: Taxpayers who currently file information or data electronically with any business or government agency or have a compatible computer may be required to file tax returns electronically.
3. Arizona: Businesses must register with the Arizona Department of Revenue and may be required to file tax returns electronically through the state's specific e-filing systems.

Recordkeeping and Documentation

Taxpayers should maintain records of their tax returns, confirmations of electronic submissions, and any electronic payment confirmations. These records should be kept for a minimum period as required by law, typically at least three to seven years.

Assistance and Resources

Taxpayers can access various resources for assistance with electronic filing, including:

1. IRS e-file Providers: A list of authorized IRS e-file providers can be found on the IRS website.
2. State Tax Departments: State-specific tax departments provide resources and guidance for electronic filing within their jurisdiction.

Security Measures

Enhanced security measures are in place to protect taxpayer information and prevent tax fraud. This may include identity verification steps and could result in longer processing times for certain tax returns and associated refunds.

For more detailed information on electronic filing requirements, taxpayers can refer to the official IRS website, state tax authority websites, and specific tax form instructions.