presented by
A

• Currently provides electronic filing and payment options for businesses
• Receives and processes returns in an internet environment
• Provides real-time processing of acknowledgements, streamlined error-detection, and standardization of business rules
• Capability to attach PDF files
MeF Forms
Corporations 1120, 1120S
1120-F
Excise Tax
Extensions
(2004)
(2008)
Exempt
Organizations
990, 990EZ, 990PF, 1120POL (2004)
990-N (e-postcard) (2008)
990 Redesign (2009)
Partnerships 1065, 1065-B (2007)
2290, 720, 8849 (2007)
7004 (2005)
8868 (2004)
3

• New Forms
Schedule G (1120), Information on Certain Persons Owning the
Corporation’s Voting Stock
Schedule K (1118), Foreign Tax Carryover Reconciliation
Schedule
• PDF to XML
• Form 8926 (1120, 1120-F), Disqualified Corporate Interest
Expense Disallowed Under Section 163(j) and Related
Information
4

‾ 1120 Form Family (continued)
‾ Form Changes
- Form 1120/Form 1120-F
- Form 3800 (1120, 1120-F)
-Form 4136 (1120, 1120-F, 1120S)
- Form 4684 (1120, 1120-F, 1120S)
- Form 5471 (1120, 1120S)
- Form 6478 (1120, 1120-F, 1120S)
- Form 6765 (1120, 1120-F, 1120S)
- Form 8586 (1120, 1120-F, 1120S)
- Form 8621 (1120, 1120-F, 1120S)
- Form 8810 (1120, 1120-F)
- Form 8864 (1120, 1120-F,1120S)
‾ Form 8865 (1120, 1120-S)
‾ Form 8907 (1120, 1120-F, 1120S)
‾ Form 8909 (1120, 1120-F, 1120S)
‾ Form 8910 (1120, 1120-F, 1120S)
‾ Schedule H (1120-F)
‾ Schedule I (1118)
‾ Schedule K (1120)
‾ Schedule K-1 (1120S)
‾ Schedule B (1120)
‾ Schedule M-3 (1120-F)
‾ Schedule O (1120)
5

• New Forms
- Schedule B-1, (1065) Information on Partner’s Owning 50% Or More of the Partnership (1065)
- Schedule D-1, (1065, 1065-B) Continuation Sheet for Schedule D
(1065) (Not needed for MeF)
• Form Changes
- Form 1065
- Form 1065-B
- Form 4136 (1065, 1065-B)
- Form 4684 (1065, 1065-B)
- Form 8586 (1065, 1065-B)
6

Form Changes (continued)
1065 Form Family
Form 8621 (1065, 1065-B)
Form 8864 (1065, 1065-B)
Form 8865 (1065, 1065-B)
Form 8907 (1065, 1065-B)
Form 8909 (1065, 1065-B)
Form 8910 (1065, 1065-B)
Schedule D (1065)
Schedule D-1 (1065)
Schedule K-1 (1065)
• Business Rule Change
Form 1065
Form 1065-B
7

Form Changes (continued)
Form Changes
- Form 2290
- 2 new checkboxes (Amended Returns & VIN Correction)
- Form 8849
- Schedules 1, 2, & 8 are available to be filed electronically
- Claims filed electronically on Schedules 2, 3, & 8 are processed within 20 days
Business Rule Changes
- Form 2290
- 4 additional business rules
- Form 8849
8

Form Changes (continued)
•
– Yearly Form Changes
– Part VI, element renamed
•
– Schedule A, Public Charity Status and Public Support for Form 990
– Schedule C, Political Campaign and Lobbying Activities
– Schedule G, Supplemental Information Regarding Fundraising or
Gaming
– Schedule N, Liquidation, Termination, Dissolution, or Significant
9

Form Changes (continued)
•
– Yearly Form Changes
– Part VII-A, element changes
10

Form Type
1120
1120S
1120-F
7004
1065/1065-B
990
990-EZ
990-PF
990-N
1120-POL
8868
2290
720
8849
2009 CUM Projected
Receipts
255,358
944,105
N/A
1,510,085
712,701
31,587
11,991
7,171
147,773
N/A
52,199
9,093
59
N/A
2009 CUM
Actual Receipts
2009 CUM % Actual vs Projected
256,789
1,003,352
411
1,522,631
747,971
27,888
13,109
5,133
167,692
14
62,388
11,952
22
614
100.56%
106.28%
N/A
100.83%
104.95%
88.29%
109.32%
71.58%
113.48%
N/A
119.52%
131.44%
0.00%
N/A
CUM %
2009 vs 2008
134.76%
140.57%
N/A
137.61%
140.11%
104.55%
222.26%
131.92%
123.21%
N/A
165.84%
230.87%
275.00%
N/A
11

 16 States and 1 City in Production status for 1120:
 AL, CO, FL, GA, ID, KS, MD, MI, MO, MT, NYCT, NYS, OR,
PA, SC, UT and WI
 12 States in Production status for 1065:
 AL, CO, GA, ID, KS, MD, MI, MT, NY, PA, UT and WI
States that began production in 2009 are:
For 1120 - New York City
For 1065 - Colorado & Pennsylvania
Changes received in July 2009:
Virginia requested the 1120 & 1065 MOUs. The 1120 MOU has been sent for IRS executive signature.
Rhode Island submitted an efile application to participate in 1120 & 1065.
12

State
ALST
COST
FLST
GAST
IDST
KSST
MDST
MIST
MOST
MTST
NYCT
NYST
ORST
PAST
SCST
UTST
WIST
Total:
Fed/State Returns through 7-19-09
Total State
Returns Made
Available
11,337
1,259
4,557
45,139
8,966
23,556
35,911
24,810
10,177
921
2,315
379,276
7,383
19,301
19,617
3,878
55,380
Corporate
Fed/State
Made
Available
2,002
188
4,557
10,826
1,699
4,681
8,917
14,339
2,407
103
548
55,120
1,876
4,721
7,390
28
14,316
Partnership
Fed/State
Made
Available
2,007
31,593
0
0
0
2,216
0
47
10,319
345
0
4,496
1,611
3,759
7,187
5,337
0
Corporate
State
Standalone
Made
Available
4,161
535
0
23,397
3,082
9,261
14,296
4,227
7,770
818
1,767
158,905
5,507
7,071
12,227
2,264
18,778
653,783 133,718 68,917 274,066
Partnership
State
Standalone
Made
Available
3,167
133,658
0
0
0
5,293
0
1,539
11,967
191
0
6,420
2,574
5,855
5,511
907
0
177,082
TY 2008 Returns Made Available = 196,413 TY 2007 Returns Made Available = 53,913
13

MOST
MTST
NYST
ORST
PAST
SCST
UTST
WIST
ALST
COST
FLST
GAST
IDST
KSST
MDST
MIST
State
Total:
Total State
Returns Made
Available
2,000
79
51,645
4,436
3,462
3,671
894
51,104
570
144
317
23,521
2,066
20,154
29,126
3,224
196,413
Corporate Fed
State Made
Available
655
5
17,917
336
1,838
886
69
15,572
179
50
317
7,636
250
4,976
8,581
522
59,789
Partnership
Fed/State Made
Corporate State Partnership State
Standalone Made Standalone Made
Available
53
8,911
0
0
0
0
0
0
10
0
0
685
136
3,741
5,642
2
19,180
Available
1,345
74
33,728
4,100
1,624
2,785
754
17,955
380
94
0
14,170
1,679
7,905
11,211
2,596
100,400
Available
18
8,666
0
0
0
0
0
0
0
1,030
1
0
1
3,532
3,692
104
17,044
14

ALST
GAST
KSST
MDST
MIST
NYST
PAST
SCST
WIST
State
Total:
Total State Returns
Made Available
1
5,538
4,940
6,945
2,873
19,304
418
22
13,872
53,913
Corporate Fed State Partnership FedState
Made Available Made Available
1 0
2,598
2,187
2,381
654
5,654
5
19
9,347
0
122
576
1
0
0
0
0
22,846 699
Corporate State
Standalone Made
Available
0
2,940
2,024
3,158
2,119
13,650
413
3
4,525
28,832
Partnership State
Standalone Made
Available
0
0
607
830
99
0
0
0
0
1,536
15

May 14, 2009
June 15, 2009
Tentative Dates - ETEC
Schemas &
Business Rules
Post initial TY 2009 version to IRS.gov for Form 2290
Assurance
Testing System
(ATS)
Startup for Forms 720 and
8849
Production Startup for Form 2290 July 1, 2009
August 20, 2009
Tentative Dates – All Others
Schemas &
Business Rules
November 2,
2009
ATS
January 4, 2010 Production
Post initial TY 2009 version to IRS.gov
Startup
Startup
16

October 2009
Tentative Dates
Publication 4164 Information for
Software Developers
December 2009
September 2009
September 2009
September 2009
June 2009
Publication 4163
Publication 4162
Publication 4505
Publication 4205
Publication 4594
Information for IRS
Authorized e-file
Providers
Form 1120-family
ATS scenarios & guidelines
Form 1065-family
ATS scenarios & guidelines
Form 990-family ATS scenarios & guidelines
Form 2290/720/8849
ATS scenarios & guidelines
17

• Phase I – February 2010
– Form
1040 and 22 other forms/schedules:
Sch A
Sch B
Sch C
Sch D
Sch E
Sch EIC
Sch SE
1099-R
Sch M (new) 2106
Sch R 2210
2441
4562
4868
8283
• Phase II – January 2011
– Current TY 2010 (23 forms)
– Prior TY 2009 (23 forms)
– Code optimization and additional hardware
• Phase III – January 2012
– Approximately 125 additional forms/schedules
– Current TY 2011 (148+ forms)
– Prior TY 2010 and Prior TY 2009 (23 forms)
8812
8829
8863
8880
8888
W-2
19

• Faster Acknowledgements to Transmitters
• Prior year filing (beginning in 2011)
• Specific explanation of errors
• Supports Federal and State e-filing
• Year round filing
20

• Volume Management Strategy
– Intended to phase-in usage of the MeF system for Form 1040
– Strategy being developed in collaboration with MeF stakeholders
– Will implement a volume ramp-up plan (draft plan shared with stakeholders on August 3, 2009 and posted to irs.gov on the 1040 MeF-related
Transmitters/States web page at: http://www.irs.gov/efile/article/0,,id=204750,00.html
– Technical Support will be provided (including daily conference calls)
• e-File Application
– e-file Application has been updated to add “
MeF Internet, XML
” as a transmission method for Form 1040. Impacts Transmitters, Software
Developers and States. Note: States should contact Delcie Miller or Nancy
Nicely with questions. We will notify the SWDers and Transmitters once that’s ready for implementation.
– EROs currently participating in 1040 Legacy e-file will be automatically enrolled in 1040 MeF
21

Paper Attachments
•
DCN versus Submission ID
MeF does not require the use of a Submission ID in place of the DCN on Form 8453. You can leave the DCN boxes blank on the Form 8453.
To assist the e-help Desk and Customer Service assistors, it will be beneficial to provide the
Submission ID with the acknowledgement sent back to the preparer/filer.
• There are five forms that currently have a paper indicator included on MeF:
– Form 1098C, Contributions of Motor Vehicles, Boats, and Airplanes
– Form 3115, Application for Change in Accounting Method
– Form 2848, Power of Attorney and Declaration of Representative
– Form 8283, Noncash Charitable Contributions
– Form 8332, Release/Revocation of Release of Claim to Exemption for Child by
Custodial Parent
Note: Only Form 8283 is included in Phase I of 1040 MeF.
22

•
– During Phase I of 1040 MeF, Form 8283,
Noncash Charitable Contributions will occasionally require a third-party signature.
– Submit the form data in XML and either attach the PDF document that should be titled “Form 8283 Signature Document” or send the signed copy with the Form 8453 after setting the paper indicator.
23

Legacy Error Reject Codes transition to MeF Business Rules
TY 2008 Error Mapping is posted to irs.gov along with the Business
Rules.
TY 2009 Error Mapping will be posted by the end of August although the
ERC information will not be completely accurate until later this fall.
ELF
E
R
C
# ELF Error Reject Code Explanation
0001
Page 1 of Form 1040, 1040A, 1040EZ, or 1040-
SS (PR) must be present.
The Summary Record must be present.
0002 Reserved
0003
Tax Return Record Identification - The Tax
Period of Form 1040/1040A/1040EZ/1040-
SS (PR) (SEQ 0005) Page 1, must equal
"200812" and Tax Period of Form
1040/1040A (SEQ 0765) and of Form
1040-SS (PR) (SEQ 1605) Page 2, must also equal "200812".
MeF
Business
Rule #
N/A
N/A
N/A
MeF Business Rule Explanation or Reason
Why No Rule
Schema validation
No Summary Record in MeF
R0000-097
Tax Year in the Return Header must equal
"2008" for processing year 2009 .
24

• The point of contact for testing is the e-help Desk. They will elevate any issues to the 1040 MeF contacts.
• We are currently working with Electronic Products Services &
Support on the PATS and ATS testing procedures.
– EPSS has preliminarily determined that there will be separate assistors for
ATS and PATS - for the same software developer.
– The 1040 MeF ATS assistors will be located in Austin.
– The 1040 PATS assistors will be located at multiple sites.
– The plan is for the PATS and ATS assistors to work independently.
25

• We are currently developing the final return validation criteria for accepted test returns. Following is what has been developed to date:
– After the return has been accepted, the assistor will verify:
Specific lines on all the test scenarios:
• Adjusted Gross Income
• Taxable Income
• Tax
• Refund or Balance Due
– other line entries based on the forms in the test scenario
– the dependencies (attachments) are properly attached
– PDF file is attached correctly (if the software supports PDF returns)
• After these validations are complete and the test scenarios are correct, the software will be passed.
• During ATS Testing we will conduct daily calls for the Software
Developers to discuss any issues/problems they are experiencing.
26

• Software Developer Testing
– MeF Assurance Testing System (ATS) – November 2, 2009
– Three test scenarios shared with current 1040 e-file
– e-Help Support will be staffed for 1040 MeF and current 1040 e-file
• Posting of Schemas and Business Rules to irs.gov
– Final TY 2008 schemas and business rules - May 2009
– Initial TY 2009 schemas - June 11, 2009
– Subsequent TY 09 package – targeting end of August 2009
• Posting of Stylesheet Package and 1040 ELF Instance Document to irs.gov
– TY 2009 1040 and 4868 Stylesheet Package – posted July 2009
– 1040 ELF Instance Document – posted July 2009
27

• Posting of MeF 1040-related publications to irs.gov
– Pub 1345 Handbook for Authorized IRS e-file Providers of Individual
Income Tax Returns – September 2009
–
Pub 1436 Test Package for Electronic Filers of Individual Tax Returns
–
September 2009
–
Pub 4164 Modernized e-File Guide for Software Developers and
Transmitters
–
October 2009
28

•
MeF 1040 web pages on irs.gov
– Located on the ‘Coming Soon to the MeF Program’ page at http://www.irs.gov/efile/article/0,,id=204750,00.html
– Contains links for:
• Forms (Phase I)
•
Publications
•
Software Developers, States, and Practitioners
• Benefits of MeF
• Calendar of Events
• FAQs
•
Mailbox for MeF 1040
– Email Address : 1040mef@irs.gov
– Questions on schemas or other technical issues concerning the program
– Key questions/answers will be posted to irs.gov as frequently asked questions (FAQs)
•
MeF Status Page
• After implementation, refer to the status page for important updates at http://www.irs.gov/efile/article/0,,id=168537,00.html
29

• Calendar of Events for the remainder of 2009 is posted to http://www.irs.gov/efile/article/0,,id=206086,00.html
– 1040 MeF Executive Council meetings (monthly)
– 1040 MeF Working Group
• Face-to-Face Meetings (semi-annual)
– Next meeting tentatively scheduled for September 2009
(conference call capability will be available)
• Conference calls (monthly)
– 1040 MeF Schema conference calls (as needed)
• Federation of Tax Administrators (FTA) TIGERS Group
– Continue collaboration during quarterly meetings
30

31