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Electronic filing Form 1041

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#1
LW25  
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The firm where I work uses Intuit Proseries for electronic filing, but I am not personally involved with the gritty details of how to file electronically.

I have a question about Form 1041 for a Chapter 7 bankruptcy estate for an individual. For years, the IRS has not allowed electronic filing of these returns. The 2018 Proseries program shows an error message if you try to set up one of these for electronic filing.

However, someone here in the office has been told by one IRS employee (a Revenue Agent, not someone actually involved with electronic filing) that it's now possible to file these returns electronically.

I've been going through the IRS web site, but I haven't found anything on the subject.

Note: A Form 1041 return for a Chapter 7 or 11 estate for an individual looks a little weird. It's a Form 1041 with a Form 1040 attached, and the income and deductions are shown on the Form 1040 with the estate being treated as a "married person filing separately".

QUESTIONS

1. Does anyone here know anything about electronic filing of a 2018 Form 1041 for a individual Chapter 7 bankruptcy estate?

2. More generally; Where is the documentation that would show exactly what kinds of Federal tax returns can and cannot currently be filed electronically?
 

#2
makbo  
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1. UltraTax also shows a diagnostic "Return must be paper filed because Bankruptcy estate returns are not supported for electronic filing". So it is not just ProSeries. Maybe the IRS employee had information for the wrong tax year?

2. there are several links and pubs, such as Pub 4163 which states,

"1.8 Forms for Processing Year 2019
MeF can process all the following parent forms in XML. Check IRS.gov for the exact date MeF will begin processing. A complete listing of forms, including new forms, that MeF accepts can be found at IRS.gov/mef on each form family’s Schemas and Business Rules page."


https://www.irs.gov/e-file-providers/mo ... file-forms

To get the absolute finest level of detail, I think you have to be a software developer per Pub 1345.
 

#3
LW25  
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makbo wrote:1. UltraTax also shows a diagnostic "Return must be paper filed because Bankruptcy estate returns are not supported for electronic filing". So it is not just ProSeries. Maybe the IRS employee had information for the wrong tax year?

2. there are several links and pubs, such as Pub 4163 which states,

"1.8 Forms for Processing Year 2019
MeF can process all the following parent forms in XML. Check IRS.gov for the exact date MeF will begin processing. A complete listing of forms, including new forms, that MeF accepts can be found at IRS.gov/mef on each form family’s Schemas and Business Rules page."


https://www.irs.gov/e-file-providers/mo ... file-forms

To get the absolute finest level of detail, I think you have to be a software developer per Pub 1345.


Thanks! The other day I was checking, and I seem to recall that under MeF, only certain forms can be attached to a Form 1041 -- and the Form 1040 is one of the forms that cannot be an attachment. If so, that would mean that the Form 1041 for a bankruptcy estate of an individual under Chapter 7 cannot be filed using the MeF method. I'm not sure, though, I'll have to go back and check.
 

#4
LW25  
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752
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The Revenue Agent I referenced earlier in the thread has now admitted that electronic filing of these particular kinds of 1041 returns is not currently possible.
 


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