1040 E-file: Overview

1040 taxpayers can e-file their returns. The e-file system uses an efficient and scalable architecture that offers the following:

uses XML to format return data and transmit to the IRS
allows binary data (non-XML documents) to be transmitted to the IRS in PDF format
eliminates drains, processes transmission files, and provided acknowledgment files faster
uses redesigned Business Rules (diagnostics)
uses a standardized Acknowledgment File structure across all form types.

E-file provides taxpayers the option to e-file and pay tax obligations at the same time. E-file also allows taxpayers to file tax returns year-round.

Currently, the IRS does not allow e-file of superseded and amended returns for 1040.

Advantages to E-file

Tax practice offices can e-file 1040 income tax returns with the IRS using our 1040 application.

While the IRS saves costs with e-filed returns, taxpayers can benefit in the following ways when they e-file their returns:

Refunds are processed in approximately three weeks and can be deposited directly into a bank account.
Balance due returns can be e-filed anytime before April 15, 2021, and the payment is not due until April 15, 2021.
When a return is e-filed, the taxpayer receives an acknowledgment from the IRS of its receipt and acceptance. This acknowledgment is better than a return receipt from the US Postal Service because the IRS performs e-file software checks and error checking before accepting a return. The electronic acknowledgment confirms IRS receipt of a mathematically correct and complete return.
E-filed returns have fewer errors than paper returns because the e-file process eliminates manual input of tax return data by IRS employees.

Thomson Reuters is the “electronic transmitter” for e-file. The tax preparer/firm is the “Electronic Return Originator” (ERO).

E-file Background

The IRS developed the e-file system to provide a standardized format and transmission method for e-filed returns. E-file uses XML (Extensible Markup Language) to implement all forms and schedules in an electronic format. The IRS has structured tax return data into a series of schemas or XML documents specifying the data elements, structures, and rules for each form, schedule, and attachment. Like paper tax returns, e-filed returns consist of a series of tax forms, schedules and attachments required to file a complete return.

E-file enforces a rigid structure that must be used to create e-filed tax returns. This structure is necessary and critical to ensure tax preparation software can create an electronic return which can be transmitted to, and viewed by, the IRS systems. In addition to formats defined by schemas, returns must also adhere to business rules which provide a second level of validation.

The IRS has developed the XML schema rules and made them available to software vendors. Vendors are required to use these XML schemas in developing software capable of e-filing returns. In many areas, e-filed tax return information must be structured differently than in previously filed paper returns.

E-file System Capabilities

Some of the capabilities of the e-file system include:

Transmitters can send transmissions to the IRS at any time. The e-file system validates the transmission file and creates an acknowledgment file almost immediately. There are times when the e-file system is down for maintenance or updates for next year processing.
E-file supports the current and two previous years of returns.

Tax practice offices can e-file individual income tax returns with the IRS using our 1040 tax application. We support e-file for federal individual income tax returns and all states that offer e-file.

States Supported for E-file

Please refer to the State E-file Summary and State E-file Information for a complete list of the states supported by e-file for 1040.

Additional Publications to Use

This guide should be read in conjunction with the following IRS publication/web site:

Publication 3112, IRS E-file Application and Participation, contains standardized information about the roles and responsibilities of authorized IRS e-file providers.

E-file/1040_ef_overview_1.htm/TY2020

Last Modified: 06/12/2020

Last System Build: 09/13/2021