990 E-file: Introduction

The IRS has extended e-file capabilities to 990 taxpayers, including the following capabilities:

accepts calendar and fiscal year returns
provides taxpayers the option to e-file and pay tax obligations at the same time
allows taxpayers to file tax returns throughout the year
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
uses a Practitioner PIN or scanned Form 8453 for signatures. The IRS will not accept paper Form 8453-EO.

Advantages to E-file

Tax practice offices can e-file 990/990EZ/990PF/990N income tax returns with the IRS using our 990 application.

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

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 Electronic Filing. The tax preparer/firm is the “Electronic Return Originator” (ERO).

Requirements

You must have a valid E-file Identification Number (EFIN) to file a return electronically. To receive an EFIN for your office, Form 8633 MUST be filed with the IRS. If your office had an EFIN last year, it is not necessarily valid this year (a valid EFIN must have had returns filed under it last year to remain valid). Once accepted, you do not have to reapply each year as long as you continue to file returns through IRS e-file and are not suspended from the IRS e-file program.

Authorization to Participate in E-file Program

The IRS Regulations require a preparer to apply for permission to e-file tax returns. To request permission to participate in thee-file program, file Form 8633, Application to Participate in the IRS E-file Program, with the IRS.

After the application for participation is accepted, the IRS assigns an E-file Identification Number (commonly referred to as an EFIN) to your firm or office. You will use this EFIN throughout the e-file process.

The IRS-assigned EFIN applies to current and future tax years. You do not have to file Form 8633 each year as long as you continue to file returns through IRS e-file and are not suspended from the IRS e-file program. If you filed returns last year through the IRS e-file program, the EFIN continues to be valid for this tax year also.

For more information on the e-file program and filing requirements, please refer to the most current version of the following documents:

IRS Pub 4206
IRS Form 8633
http://www.irs.gov/efile/index.html

E-file/990_ef_intro.htm/TY2020

Last Modified: 12/30/2020

Last System Build: 09/13/2021