IRS Announces E-Filing Requirements for Large Corporations
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In early January, the IRS published new regulations requiring certain large corporations to electronically file income tax returns beginning in 2006. This ruling also affects some tax-exempt organizations.

For 2005 returns filed in 2006, the IRS is requiring corps with $50 million or more in total assets to file Forms 1120 and 1120S electronically. The threshold for tax-exempt organizations is $100 million or more in assets. For these companies, Form 990 must be filed electronically. In coming years, the IRS plan is to lower the asset threshold to include smaller companies. For 2006 returns filed in 2007, corporations and taxexempt organizations with $10 million or more in total assets must file tax returns electronically.

The IRS claims that there "are no current plans to make electronic filing mandatory for small business taxpayers." However, the recent release states that "all taxpayers are strongly encouraged to adopt electronic filing."