e-file requirements for the 2012 Filing Season  (FQAs revised at 1:00 pm, Eastern on 1/11/12)

The IRS expects transmitters and states to use the Modernized e-File system as the primary e-filing platform for processing year 2012. Guidance is provided below and a list of Frequently Asked Questions (FAQ) will be updated as needed (note: FAQs were revised 1/11/12). Questions about the notification can be submitted to the 1040 MeF mailbox. The mailbox will temporarily be used to address questions pertaining only to this Notification. It will not be maintained after the core questions are addressed in the FAQs. Please do not send Notification-related questions to the MeF mailbox. Any Notification-related emails inadvertently sent to the MeF mailbox will not be responded to. The IRS may not be able to reply to each inquiry - we will consolidate and summarize questions and answers and post them to the FAQs. For company and/or state specific questions, the IRS will contact the company/state directly to respond.

1040 e-File Notification to Software Developers/Transmitters and States for Filing Season 2012

Previous Notifications
The IRS reminds Software Developers/Transmitters and States of the following notifications previously communicated at the Software Developer’s Conference, during Industry Calls, and other industry meetings and public forums:

1. 1040 Legacy Shutdown - IRS will deploy the last phase of the 1040 Modernized e-File (MeF) program for Filing Season 2012.  MeF Release 7 will enable electronic filing of all 1040 forms and schedules.  In preparation for increased Industry and State participation, the IRS expanded the MeF disaster recovery capabilities and implemented a number of improvements to increase system stability and performance.  Filing Season 2012 is the last year that Legacy 1040 e-File and 1040 MeF will operate in parallel.  Industry and States should be aware that the IRS is on schedule to permanently shutdown (retire) the Legacy 1040 e-File system in October 2012.  The IRS is committed to working with Industry and States as they develop and execute their plans to migrate to the MeF platform.
   
2. No Volume Restrictions for 1040 MeF Processing - IRS has no plans to impose any kind of volume controls or restrictions on Transmitters and States who send returns to MeF during Filing Season 2012.  IRS made significant changes to its infrastructure and applications prior to Filing Season 2011 resulting in little unscheduled downtime and greatly improved system performance.  IRS is continuing to execute its performance improvement plan in preparation for Filing Season 2012 with the objective of maintaining its performance goals of making acknowledgements available within 5 minutes during non peak days/hours and within 2 hours during peak days/hours.
   
   Additional Notifications and Requirements
   In order to ensure the migration to 1040 MeF proceeds as planned, the IRS is putting in place parameters that will limit the volumes in the legacy system for Filing Season 2012. The IRS believes that this is a reasonable and measured step to take at this time to better ensure MeF’s ultimate success. The IRS is notifying Software Developers/Transmitters and States of the following requirements for transmitting 1040 e-Filed returns during Filing Season 2012:
   
   
3. Transmitting to MeF - Companies that transmitted 1 million or more 1040 e-Filed returns (including all 1040 form family and F4868 extensions) during Filing Season 2011 will be required to process their 2012 e-file volume through MeF. 
   Limited Exceptions Apply:
   • In the event IRS determines MeF is unavailable, Transmitters will be allowed to transmit returns to Legacy e-File during the period in which MeF is unavailable.
   • If a Transmitter experiences a software or operational issue with their system, the Transmitter must contact the IRS.  Permission to process through Legacy e-File may be granted on a case-by-case basis and only for a limited period.
   • For States currently not MeF ready, Transmitters can choose to transmit the State only return to Legacy e-File for State retrieval.  When a State becomes MeF ready (i.e. their system is operational and State schemas posted), Software Developers/Transmitters are required to update their software and begin transmitting the State returns to MeF (both linked and unlinked).
4. State Return Retrieval – States are encouraged to complete their MeF development and work directly with Software Developers/Transmitters to enable State support in software packages.  Due to the above requirements, States must use MeF to retrieve linked Fed/State returns.
   
5. Limited Legacy e-File Availability – In preparation of 1040 Legacy e-File shutdown in October 2012 and to ensure the majority of e-Filed returns are processed through MeF, 1040 Legacy e-File will be limited to the following hours of operation 10 to 11AM local time, 5 to 6PM local time, and 1 to 2AM local time. This schedule applies to all Transmitters and States regardless of your readiness to support MeF. In the event MeF is unavailable, the window of 1040 Legacy e-File availability will be extended at the IRS’ discretion.
   
6. PDF Support – While it is preferred that all forms and schedules implemented on the MeF platform be submitted in Extensible Markup Language (XML) format in support of the IRS data strategy, there are certain situations in which PDF attachments will be required, such as late legislation, other unscheduled form changes, and unstructured data (signature or third party documentation).
   
7. e-File Start Up – IRS e-File (MeF and Legacy) will open on January 17, 2012 at 9 am.

2011 Drain Times - IRS e-file

• 1040 Live Production Processing Schedule for Form 1040 Series and ETDS
• 1040 Participants Acceptance Testing (PATS) Processing Schedule for Form 1040 Series and ETDS
• Business Returns - Electronic Management System (EMS) Business Return Drain Schedule

2010 Individual e-File Transmission Chart
Processing for 1040 e-file in 2011 (Tax Year 2010)

Publication 1346 (Rev.10-2011)
Electronic Return File Specifications and Record Layouts for Individual Income Tax Returns
Publication 1346 contains file specifications, error reject conditions, record layouts for forms and schedules associated with individual e-file income tax returns and e-file forms that are filed separately from the tax return.

Publication 1436 (Rev. 9-2011)
Test Package for Electronic Filers of Individual Income Tax Returns for Tax Year 2011
Publication 1436 contains a group of scenarios and instructions for preparing test material for Electronic Filing of Individual Income Tax Returns.

7216 Updated Rules for Tax Preparers
New regulations under Internal Revenue Code Section 7216, Disclosure or Use of Tax Information by Preparers of Returns, become effective January 1, 2009.

2012 Credit Card Bulk Provider Requirements
Software providers can incorporate a credit card tax payment option in their products following the technical specifications described in this document. This integrated e-file and e-pay option provides one-stop service to e-filers with a balance due.

Quick Alerts
Never miss another important e-file message with Quick Alerts! Calling all ERO's, Software Developers and Transmitters - Did you know that the IRS has a free messaging system that provides e-file information including submission processing center delays within moments of when they occur?

e-services
Online e-services products are now available including the electronic e-file application.

Toll-Free Number for e-Help
e-Help desk assistors are ready to respond to all questions and issues concerning e-products at 1-866-255-0654.

The Electronic Federal Tax Payment System (EFTPS) Interface Protocol Specifications (IPS) - Rev. 08/30/2005
To obtain a copy of the public XML Schema for performing a limited set of EFTPS taxpayer, batch provider and third-party transmitter transactions please call EFTPS Customer Service at 1-800-945-0966.