On July 1, 2019, the Taxpayer First Act (TFA) was signed into law. The significance of this law centers on administrative procedures the IRS must enact in order to become a more taxpayer-friendly agency. The TFA sets new mandates to enhance the taxpayer experience through modernization, more efficient tax administration, increased cybersecurity, and stronger identity protection. Focus has now shifted toward customer service priorities.

As part of the modernization efforts, the platforms available for filing returns have changed. Exempt organizations are now required to file forms electronically for tax years beginning after July 1, 2019. For those organizations that previously filed paper forms, the IRS is sending out letters informing taxpayers of the change.

The following Forms must be e-filed:

  • Form 990, Return of Organization from Income Tax
  • Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Trust Treated as a Private Foundation
  • Form 8872, Political Organization Report of Contributions and Expenditures
  • Form 1065, U.S. Return of Partnership Income (if filed by a Section 501(d) apostolic organization).

Form 990-T was set to follow the new e-file mandates but is delayed a year, along with short year returns. The IRS does not yet have the technology in place to electronically accept these filings. Paper copies will still be accepted in 2020; the IRS plans to accept e-filing of the Form 990-T in 2021.

The IRS will also delay the requirement to e-file Form 990-EZ for one year, but optional e-filing continues to be available.

If you have questions related to the new e-filing mandates, please contact a Clark Nuber tax advisor.

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This article contains general information only and should not be construed as accounting, business, financial, investment, legal, tax, or other professional advice or services. Before making any decision or taking any action, you should engage a qualified professional advisor.