1120 E-file: Introduction
The IRS developed the Modernized e-File (MeF) system to provide a standardized format and transmission method for e-filed returns. MeF 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, MeF returns consists of a series of tax forms, schedules, and attachments required to file a complete return.
MeF 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 e-file 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 that 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.
MeF System Capabilities
Some of the capabilities introduced with the MeF System include:
- Transmitters can send transmissions to the IRS at any time. The MeF system validates the transmission file and creates an immediate acknowledgment file. At times, the MeF system is unavailable due to maintenance or updates for next year processing.
- MeF is completely paperless. Information not defined by the IRS schemas can be included with the e-filed return as PDF attachments. Signature requirements can be met by use of the Practitioner PIN option or by attaching signature documents as PDF files.
- MeF supports the current and two previous years of returns (2020, 2019, and 2018).
- MeF supports integrated refund and payment options. Refunds can be electronically deposited in bank accounts or balance due payments can be electronically withdrawn from bank accounts.
- MeF allows transmitters to send transmissions to the IRS year-round, except for a short cut-over period at the end of the calendar year.
Returns and Extensions Supported by MeF
| Form | Type | Description |
|---|---|---|
| 1120 | Return | US Corporation Income Tax Return |
| 1120-F | Return | US Income Tax Return of a Foreign Corporation |
| 1120S | Return | US Income Tax Return for an S Corporation |
| 7004 | Extension | Application for Automatic Extension of Time to File Certain Business Income Tax, Information, and Other Returns |
Authorization to Participate in the E-file Program
Thomson Reuters is the transmitter for e-filed returns. The tax preparer/firm is the Electronic Return Originator (ERO). The ERO must be accepted as an Authorized IRS E-file Provider. The IRS Publication 3112 (http://www.irs.gov/Tax-Professionals/e-File-Providers-&-Partners/Download-and-Read-IRS-Publication-3112) provides definitions and procedures required for becoming an authorized IRS E-file Provider.
A Large Taxpayer transmitting its own business return is not an Authorized IRS E-file Provider. Details for Large Taxpayers can be found in the Section 5 of the IRS Publication 4163 (http://www.irs.gov/pub/irs-pdf/p4163.pdf).
Additional Forms
In addition to the forms normally filed with business returns, MeF adds several other forms applicable only to e-filed returns and extensions.
Form 8453 A scanned Form 8453 is used to sign the e-file return. The authorized return signer signs the appropriate form. The return signer authenticates the accuracy of the return information reported on the form, authorizes the ERO (if any) to transmit the return, and provides consent to directly deposit any refund and/or authorize an electronic funds withdrawal for payment of federal taxes owed. If applicable, the ERO and paid preparer also sign the form. The signed form is then scanned and attached as a PDF file to the return before transmitting. The description of the scanned Form 8453 must be 8453 Signature Document.
The business entity should retain a copy of the signed form but it should not be mailed to the IRS.
Signature authorization is made using the following version of Form 8453
| Return Type |
Description |
|---|---|
| 1120 | 8453-C: US Corporation Income Tax Declaration for an IRS e-file Return |
| 1120-F |
8453-I: Foreign Corporation Income Tax Declaration for an IRS e-file Return |
| 1120S |
8453-S: US S Corporation Income Tax Declaration for an IRS e-file Return |
Form 8879 The Practitioner PIN signature option uses Form 8879 and requires the taxpayer to use an ERO. The taxpayer selects a five-digit Personal Identification Number (PIN) as their electronic signature. The taxpayer can enter this PIN directly into the return preparation software, or authorize the ERO to enter the PIN. The ERO completes the appropriate Form 8879, including the taxpayer’s PIN and the ERO’s PIN. The ERO retains a copy of Form 8879 and provides a copy to the taxpayer. Form 8879 should not be mailed to the IRS.
Signature authorization is made using the following version of Form 8879
| Return Type |
Description |
|---|---|
| 1120 | 8879-C: IRS e-file Signature Authorization for Form 1120 |
| 1120-F |
8879-I: IRS e-file Signature Authorization for Form 1120-F |
| 1120S |
8879-S: IRS e-file Signature Authorization for Form 1120S |
IRS Supplements to this Guide
The IRS MeF system supports additional return filings not covered in this guide. This guide covers only the e-filing of extensions, corporation returns, and partnership returns. This guide should be read in conjunction with the following IRS publications and web sites:
- Publication 3112, IRS E-file Application and Participation, containing standardized information about the roles and responsibilities of Authorized IRS E-file Providers.
- Publication 4163, Modernized e-File (MeF) information for Authorized IRS E-file Providers for Business Returns, provides specific requirements and procedures for e-filing of Forms 1120, 1120-F, 1120S, and 7004.
- Publication 4557, Safeguarding Taxpayer Data: A Guide For Your Business, provides information on legal requirements to safeguard taxpayer data.
- E-file for Tax Professionals. IRS has posted additional information on how to participate in e-file, transitional rules for partnerships and corporations required to e-file, and other informative links regarding partnership/corporate e-file at http://www.irs.gov/for-Tax-Pros. The IRS frequently updates these sites with FAQs, known issues, workarounds, and other MeF changes.
Communicating with the IRS
The IRS e-help Desk provides assistance in support of MeF software and communication testing for corporate, partnership, and tax exempt returns throughout the filing season. The e-help Desk also provides assistance with e-Services registration and the IRS e-file application processes. Contact the e-help Desk at 1-866-255-0654, or if outside the US and US Territories, 1-512-416-7750.
The MeF Status Page provides information on current system status, system maintenance or other processing delays, and the volume of accepted returns. This site can be accessed at http://www.irs.gov/tax-professionals/e-file-providers-partners/modernized-e-file-mef-status-page.
MeF Quick Alerts is an IRS e-mail service that provides current information regarding MeF issues. Subscribe to MeF Quick Alerts at http://www.irs.gov/Tax-Professionals/e-File-Providers-&-Partners/QuickAlerts---More--e-file-Benefits-for-Tax-Professionals.
E-file/1120_ef_intro.htm/TY2020
Last Modified: 03/20/2020
Last System Build: 09/13/2021
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