What happens if a corporate taxpayer required to e-file fails to comply?
A9. If a corporate taxpayer fails to file an income tax return on magnetic media when required to do so by regulations, the IRS may determine that the taxpayer has failed to file the return. The taxpayer then becomes subject to §6651 additions to tax, typically resulting in monetary penalties on the amount of underpayment. Additionally, any return not in compliance with the electronic filing requirement will be considered to not have been timely filed rendering any elections invalid.
A8. If a corporate taxpayer fails to file an income tax return on magnetic media when required to do so by regulations, the IRS may determine that the taxpayer has failed to file the return. The taxpayer then becomes subject to §6651 additions to tax, typically resulting in monetary penalties on the amount of underpayment. Additionally, any return not in compliance with the electronic filing requirement will be considered to not have been timely filed rendering any elections invalid. For returns filed for tax year 2005, the Service contacted each taxpayer who reported assets exceeding $50M and filed a paper return. We explained the electronic filing requirements to these taxpayers and worked with them to subsequently electronically file if they were covered by the temporary regulation. The Service will continue to monitor paper filing submissions and enforce the requirements of electronically filling appropriately.
A7. If a corporate taxpayer fails to file an income tax return on magnetic media when required to do so by regulations, the IRS may determine that the taxpayer has failed to file the return. The taxpayer then becomes subject to §6651 additions to tax, typically resulting in monetary penalties on the amount of underpayment. Additionally, any return not in compliance with the electronic filing requirement will be considered to not have been timely filed rendering any elections invalid. The Service contacts taxpayers who report assets exceeding $10M and filed a paper return. We explain the electronic filing requirements to these taxpayers and work with them to subsequently electronically file if they are covered by TD 9363. The Service will continue to monitor paper filing submissions and enforce the requirements of electronically filing.
