IRS mandates e-filing

Officials at large companies and tax-exempt organizations must electronically file their Internal Revenue Service forms starting in 2006, tax agency officials announced today.

The new regulations will first apply to corporations worth more than $50 million and tax-exempt organizations with assets of at least $100 million.

The threshold lowers in 2007 to businesses and tax-exempt organizations worth $10 million. IRS officials expect that by then at least 20,000 large corporate taxpayers and up to 10,000 tax-exempt entities will be covered by the electronic filing requirement.

Companies that file fewer than 250 annual IRS returns -- such as income, excise, information and employment tax forms -- will be exempt from the new electronic submission rules, however.

This technology mandate will reduce the completion time of audits, said Mark Everson, IRS commissioner. "This is important because audits, on average, take five years to complete for large corporations," he said in an agency release. "Speeding processing also will help identify emerging trends and abuses earlier, enabling the IRS to address problems before they get out of hand."

There are no current plans to extend the electronic filing requirement to small businesses, according to the release, although "all taxpayers are strongly encouraged to adopt electronic filling."

About the Author

David Perera is a special contributor to Defense Systems.

Featured

  • Workforce
    By Mark Van Scyoc Royalty-free stock photo ID: 285175268

    OPM nominee plans focus on telework, IT, retirement

    Kiran Ahuja, a veteran of the Office of Personnel Management, told lawmakers that she thinks that the lack of consistent leadership in the top position at OPM has taken a toll on the ability of the agency to complete longer term IT modernization projects.

  • Defense
    Soldiers from the Old Guard test the second iteration of the Integrated Visual Augmentation System (IVAS) capability set during an exercise at Fort Belvoir, VA in Fall 2019. Photo by Courtney Bacon

    IVAS and the future of defense acquisition

    The Army’s Integrated Visual Augmentation System has been in the works for years, but the potentially multibillion deal could mark a paradigm shift in how the Defense Department buys and leverages technology.

Stay Connected