New law expands eFile requirements

Overview

The Taxpayer First Act (Act), signed into law by President Trump on July 1, introduces two important changes for tax-exempt organizations. First, the Act expands the requirement to electronically file annual returns to include all Form 990-series returns (e.g., Forms 990 and 990-PF filed by small organizations, Forms 990-T). Second, the Act requires the IRS to notify an organization prior to automatically revoking its tax-exempt status for failing to file annual returns or notices under Section 6033(j).

The takeaway

The transition to electronically filing all Form 990-series returns, including all Forms 990-PF and 990-T, will be a significant change for many organizations, their advisors, and their software providers. The return data will be more readily available for the IRS to query as part of its data-driven examination procedures, and also will be more readily available to the public.

PwC will be monitoring the rollout and implementation of these changes and will issue a subsequent Insight when additional guidance is released.