IR-2007-02, Jan. 8, 2007
WASHINGTON ¡ª Beginning today, partnership taxpayers can electronically file tax year 2006 Form 1065, U.S. Return of Partnership Income, and Form 1065-B, U.S. Return of Income for Electing Large Partnerships, using the Modernized e-obÌåÓý platform.
¡°Electronic filing is a key component to modernizing our tax system,¡± IRS Commissioner Mark W. Everson said. ¡°E-obÌåÓý improves the speed and accuracy of tax return filing, and we encourage partnership taxpayers to take advantage of this enhanced system.¡±
Since tax year 1986, the IRS has offered electronic filing of Form 1065. The existing 1065 e-obÌåÓý platform uses a proprietary data transmission format. However, the Modernized e-obÌåÓý platform uses the Extensible Markup Language (XML) format, which is an industry-standard method of identifying, storing and transmitting data. Both e-obÌåÓý platforms offer improved speed and accuracy of tax return filing. But Modernized e-obÌåÓý offers additional benefits, including transactional processing instead of batch processing, allowance for binary file attachments, elimination of the duplicate filing of International returns and a federal/state partnership program.
The IRS anticipates more than 400,000 partnerships will e-obÌåÓý in 2007. Most of those partnerships are not mandated to e-obÌåÓý but are encouraged to do so for the e-Filing benefits.
For tax year 2006, partnerships have the option to e-obÌåÓý Form 1065 through the Modernized e-obÌåÓý system or the existing 1065 e-obÌåÓý system. However, e-obÌåÓý for Form 1065-B is available solely through Modernized e-obÌåÓý. Partnership taxpayers should talk with their software provider or transmitter to determine which e-obÌåÓý platform to use. Beginning in January 2008, Modernized e-obÌåÓý will be the only e-obÌåÓý platform available to e-obÌåÓý partnership returns. At that time, the IRS will also require e-obÌåÓý for all 1065-B returns.
Partnership taxpayers can access detailed information about the Form 1065 e-obÌåÓý process by clicking on the "Modernized e-obÌåÓý for Partnerships" link below.
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