Business electronic filing.

• Author: Laffie, Lesli S.
• Position: Regulations

New temporary regulations (TD 9100; NPRM REG-116664-01) are designed to eliminate regulatory impediments to the electronic filing of certain income tax returns and other forms by corporations, partnerships and other businesses.

The IRS has identified a number of regulations that impeded businesses' ability to file returns electronically. For example, some regulations hinder electronic filing by requiring taxpayers to include third-party signatures on returns or to attach documents or statements generated by a third party. Others require taxpayers to sign IRS forms and file them as attachments to their tax returns. The temporary regulations, which eliminate the hurdles for tax years beginning after 2002 and apply for a three-year period, affect business taxpayers that must file any of the following forms:

1. Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation.

2. Form 972, Consent of Shareholder to Include Specific Amount in Gross Income.

3. Form 973, Corporation Claim for Deduction for Consent Dividends.

4. Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment).

5. Form 1120, U.S. Corporation Income Tax Return.

6. Form 1120S, U.S. Income Tax Return for an S Corporation.

7. Form 5471, Information Return of...