fta efile symposiumexpansion of the federal/state program to include estates and trusts ! addition...

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FTA eFile Symposium Overview of 2014 Filing Season Melodye Mitchell, Chief, Electronic Filing Services, Development Services Branch

Whats New for January 2014

!   Implementation of Estates and Trust (Form 1041) on MeF platform !   Implementation of Employment Tax Program (94X series) on MeF

platform

!   Expansion of the Federal/State Program to include Estates and Trusts

!   Addition of 3 new forms:

Form 8959-Additional Medicare and Railroad Retirement Tax

Form 8960-Net Investment Income for Individuals, Estates and Trusts

Form 8839- Qualified Adoption Expenses

!   Expansion of XML standardization to Business Forms

Presentation Name | W&I 1

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1041 MeF Program Some differences between the 1041 MeF program and the 1041 Legacy Program are provided below:

Item 1041 MeF 1041 Legacy Amended/Superseded Returns

Available for e-File Not available

Prior Year Returns Available for e-File Not available

In Processing Year 2014: •  Amended Returns for Tax Year 2013 can be e-filed.

In Processing Year 2015: •  Amended Returns for Tax Years 2013 and 2014 can be e-filed •  Prior Year return for Tax Year 2013 can be e-filed

In Processing Year 2016: •  Amended Returns for Tax Years 2013, 2014 and 2015 can be e-

filed •  Prior Year returns for Tax Years 2013 and 2014 can be e-filed

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1041 MeF Program

Item 1041 MeF 1041 Legacy Fiscal Year Filers All Fiscal Year filers can file

through MeF Fiscal Year filers with tax periods ending after June can’t e-file

Binary Attachments Statements and Schedules not available in XML can be attached as PDF

Not available – documents must be mailed to IRS

Signature Practitioner PIN option (Form 8879-F) Form 8453-FE (new) attached as a Binary Attachment to each electronic return Signature for Multiple Return Filing is NOT available.

Practitioner PIN option (Form 8879-F) Form 8453-F mailed to IRS including Signature for Multiple Return Filing.

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1041 MeF Program

Item 1041 MeF 1041 Legacy Estimated Payments

Can be attached to an MeF e-file submission

Not included in 1041 e-file return

Overview of 94X Program Scope

!   The forms currently supported by the Electronic Management System (EMS), will be developed for the MeF platform for 94x XML processing include: ! 940 ! 940-PR ! Schedule A (Form 940) ! 941 ! 941-PR ! 941-SS ! Schedule B (Form 941) ! Anexo B (Form 941-PR) ! Schedule D (Form 941) ! Schedule R (Form 941) ! 943 ! 943PR ! 943-A ! 944 ! 940 Sch R ! 945 ! 945-A

94x Forms currently not within scope on the e-file platform are amended (Forms 940-X, 941- X and 944-X) MeF is a transactionally-based application. There are no plans to support Bulk Processing as currently defined I n Legacy.

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94x MeF Program

Item 94x MeF 94x Legacy

Signature Practitioner PIN option (Form 8879-EMP) Form 8453-EMP (new) attached as a Binary Attachment to each electronic return Signature for Multiple Return Filing is NOT available using 8453-F or 8453 EMP Reporting Agent PIN included with each submission LOA PIN (Online filer’s PIN) is NOT supported

Not Available Not Available Not Available Reporting Agent PIN included wuth batch of submissions LOA PIN accepted

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94x MeF Program

Item 94x MeF 94x Legacy

Binary Attachments Statements and Schedules not available in XML can be attached as PDF

Not available – documents must be mailed to IRS

Bulk Processing MeF does NOT support bulk (batch) processing. Up to 100 submissions can be included in a single transaction

Legacy supports bulk processing.

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DRAFT

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MeF Test Publication for ATS (Assurance Testing System)

New for November, 2013 ATS:

MeF will be consolidating all Business Test Publications into new Publication 5078.

Separate publications will no longer be issued for each tax type. The following publications will be discontinued:

•  Publication 4162 for 1120 program

•  Publication 4505 for 1065 program

•  Publication 4594 for Excise Tax Program

•  Publication 4205 for Tax Exempt and Government Entities program

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MeF Test Publication for ATS (Assurance Testing System) New Publication 5078 will include: •  General information about MeF testing that applies to all tax types •  Testing information specific to each tax type, such as

•  Testing for Consolidated returns (1120 program) •  K-1 aggregator testing (1065 program)

New Publication 5078 will NOT include the specific test scenarios. The test scenarios will be posted to IRS.gov. The link to the IRS.gov webpage for test scenarios will be provided at a later date.

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Release 9 – Projected Posting Dates

RELEASE 9 SCHEMA POSTING DATES (PROJECTED)

SCHEMA & RULES PACKAGE DATE

1041 Schemas 5/10/2013

94X Schemas 5/17/2013

94X & 1041 Business Rules 6/7/2013

1040 Schemas 6/25/2013

BMF Schemas TBD

Transitioning from Legacy to MeF

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MeF and Legacy will operate in parallel until February 2015. A decision will be made at that time to retire EMS.

PRODUCTION ENVIRONMENTS

PY2013 PY2014 PY2015JAN APR JUL OCT JAN APR JULY OCT JAN * APR JUL OCT

LEGACY PRODUCTIONTY13 941, 941-‐SS, 941-‐PR 1st Q TY13 Q1 DUE LATE LATE LATE RETIRED RETIRED RETIREDTY13 941, 941-‐SS, 941-‐PR 2nd Q TY13 Q2 DUE LATE LATE LATE RETIRED RETIRED RETIREDTY13 941, 941-‐SS, 941-‐PR 3rd Q TY13 Q3 DUE LATE LATE LATE RETIRED RETIRED RETIREDTY13 941, 941-‐SS, 941-‐PR 4th Q TY13 Q4 DUE LATE LATE LATE RETIRED RETIRED RETIREDTY13 940, 940-‐SS, 943, 944, 945 ( Annual) TY13 ANNUAL DUE LATE LATE LATE RETIRED RETIRED RETIREDTY14 941, 941-‐SS, 941-‐PR 1st Q TY14 Q1 DUE LATE LATE RETIRED RETIRED RETIREDTY14 941, 941-‐SS, 941-‐PR 2nd Q TY14 Q2 DUE LATE RETIRED RETIRED RETIREDTY14 941, 941-‐SS, 941-‐PR 3rd Q TY14 Q3 DUE LATE RETIRED RETIRED RETIREDTY14 941, 941-‐SS, 941-‐PR 4th Q TY14 Q4 DUE RETIRED RETIRED RETIREDTY14 940,940-‐SS, 943, 944, 945 ( Annual) TY14 ANNUAL DUE RETIRED RETIRED RETIRED

MEF PRODUCTION TY13 941, 941-‐SS, 941-‐PR 1st QTY13 941, 941-‐SS, 941-‐PR 2nd QTY13 941, 941-‐SS, 941-‐PR 3rd QTY13 941, 941-‐SS, 941-‐PR 4th Q TY13 Q4 DUE LATE LATE LATE

TY13 940, 943, 944, 945 ( Annual) TY13 ANNUAL DUE LATE LATE LATE

TY14 941, 941-‐SS, 941-‐PR 1st Q TY14 Q1 DUE LATE LATE LATE

TY14 941, 941-‐SS, 941-‐PR 2nd Q TY14 Q2 DUE LATE LATE LATE

TY14 941, 941-‐SS, 941-‐PR 3rd Q TY14 Q3 DUE LATE LATE LATE

TY14 941, 941-‐SS, 941-‐PR 4th Q TY14 Q4 DUE LATE LATE LATE

TY14 940, 943, 944, 945 ( Annual) TY14 ANNUAL DUE LATE LATE LATE

KEY

* No returns will be accepted through Legacy after February 10, 2015

Federal/State Program Changes

!   Expanding program to include Estates and Trusts (Form 1041)

!   1041 Memorandum of Understanding

•  Refine understanding of Federal Tax Information (FTI)

•  Annual Review


Projected Participation in 1041 Fed/State Program


States Not Planning to Participate or Have no

1041 Filing Requirement

States Planning to Participate in Processing

Year 2014

States Planning to Participate in Processing

Year 2015

States Planning to Participate

at a Date to be Determined

Alaska Alabama Indiana Arizona California Arkansas Maryland Delaware

Florida Colorado Virginia District of Columbia Louisiana Connecticut Hawaii

Massachusetts Georgia Iowa Nebraska Idaho Kansas Nevada Illinois Kentucky

New Hampshire Mississippi Maine South Dakota Missouri Michigan

Texas Montana Minnesota Washington New Jersey New Mexico

Wyoming New York North Carolina Total New York City Ohio

North Dakota Oklahoma Rhode Island Oregon Utah Pennsylvania West Virginia Philadelphia Wisconsin South Carolina Tennessee Vermont

Article VIII - Disclosure, Safeguards and Recordkeeping Requirements

Below is an excerpt from the 1041 MOU. The bolded section is the information provided in the “IRS Date” file.

The State will maintain Federal tax returns and return information separately from other information to the maximum extent possible to avoid inadvertent disclosures and to comply with the federal safeguards required by IRC §6103(p)(4). The agency will also abide by all other requirements of IRC §6103(p)(4).

All information obtained under this MOU must be safeguarded in accordance with the Basic Agreement, the Implementing Agreement, as well as the safeguard requirements of IRC §6103(p)(4), as described in IRS Publication 1075, Tax Information Security Guidelines for Federal, State, and Local Agencies and Entities. Federal and State returns will be sent to the IRS as complete and separate submissions. No data will be transferred or copied from one submission to another. The federal tax information that will be associated and provided in the zip file of data for State submissions will include: o  Submission ID – The submission ID of the received State submission. o  Electronic Transmitter Identification Number (ETIN) - The identifier of the transmitter that sent the State submission

to IRS. o  Received Timestamp - The date and time the State submission was received by IRS. o  Electronic Postmark - The date and time the State submission was received by the Transmitter. o  Taxpayer Identification Number (TIN) Status - The results of the TIN and name control validation. MeF checks the TIN

and name control from the State submission manifest against the IRS e-file database and sets an indication of “Match”, “No Match”, or “Not Found”.

o  Source IRS Submission ID – The submission ID of the linked Federal return. Internal Revenue Code (IRC) Section 6103(p)(8) governs any “wraparound” information received electronically by the State. Further, the provisions of IRC Sections 7213 and 7431 apply to all State tax agency officers and employees. The IRS disclosure accounting requirement is being met by an automated procedure.

Article XXIII

Article XXIII – Evaluation of Data Exchange The IRS and the State will review this MOU annually to evaluate the existing data exchange, examine the continuing needs for and uses of the exchanged data, and determine whether the provisions of this agreement require amendment or revision. The method of review (conference call, meeting, e-mail) will be jointly determined by the IRS Governmental Liaison, Office of Disclosure, Office of Safeguards, Business Operating Division, and the State Liaison.

Question and Answer

Xan Ostro, MeF Senior Technical Advisor 17

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