About e-filing federal and state returns and remitting balance due payments
ONESOURCE Trust Tax lets you:
- E-file calendar and fiscal year federal 1041 returns, federal 5227 returns (beginning with tax year 2022), and federal 990 return types (Forms 990, 990-EZ, 990-PF, 990-T and 4270), including amendments and extensions. These federal return types are filed through the IRS' Modernized E-File (MeF) platform. Federal returns must be qualified for e-filing and any Electronic Filing Reject diagnostics must be cleared before the return can be e-filed.
- Separately process, track, and e-file accounts that file both 1041 and 990-PF returns (Section 4947(a)(1) trusts that require both 1041 and 990 return reporting) beginning with tax year 2021. See the 990 Guide for details on setting the dual processing flag and processing these accounts.
- Separately process, track, and e-file accounts that file both 1041 and 5227 returns beginning with the tax year 2022.
- E-file all calendar and fiscal year resident and nonresident state 1041 returns. All resident and nonresident state 1041 returns are e-filed with the state taxing authority through the IRS' Modernized E-File (MeF) platform.
- E-file Massachusetts Form 2G, New Jersey NJ-1041, and Pennsylvania PA-41 for 5227 returns beginning with tax year 2022. Consolidated Massachusetts Form 2G can't be E-Filed. Extensions can't be E-Filed for Massachusetts. For New Jersey NJ-1041 and Pennsylvania PA-41 for 5227 returns, e-filing of state extensions is available for tax year 2022 if the return has a balance due and is being paid electronically. E-filing for all other state 5227 returns isn't available. They must be printed and paper-filed with the taxing authority.
- E-file original and amended 990 state returns. Currently, only California (Form 199) is available for e-filing. California requires Form 199 to be E-Filed and requires a copy of the federal 990, 990-EZ, or 990-PF return.
About remitting balance due payments
ONESOURCE Trust Tax complies with the balance due remittance process outlined by the respective taxing authority. Federal balance due payments for original and amended returns are remitted using the Electronic Federal Tax Payment System (EFTPS) service. See the
About EFTPS
section for details. EFTPS can be used to remit balance due payments for E-Filed and paper-filed returns. For accounts that require dual return processing, balance due payments for any tax due on the federal 1041 and 990 returns are included in the EFTPS file.The state balance due payment remittance process varies from state to state. For Massachusetts, Minnesota, New York, and Pennsylvania, 2 electronic payment methods are offered:
- Bulk payment method: Lets you include the state balance due payment information regardless of whether returns are accepted or rejected from e-file or are paper-filed. When the bulk payment method is used, there are additional steps you need to complete to remit payment.
- For Massachusetts, Minnesota, or New York balance due payments, you must prepare a payment file, download it from ONESOURCE Trust Tax, then upload it to the state taxing authority's online services website. These states require registration before you can use the state taxing authority's website to upload the payment file. See theAbout registering to use Massachusetts, Minnesota, and New York online services websitesection for details.
- For Pennsylvania, ONESOURCE Trust Tax transmits the balance due payment file directly to the Pennsylvania Department of Revenue after the balance due payment file is prepared. Submit payment via an ACH credit to the Pennsylvania Department of Revenue, and the payment must be received by the settlement date.
- Pay with e-file method: Includes the payment information in state e-file data. The payment is submitted to the state taxing authority when the return is accepted for e-file. The Pay with e-file payment method applies only to E-Filed returns. Balance due payments for paper-filed returns must be remitted by mailing a check and payment voucher to the state taxing authority.
Missouri balance due payments are remitted by mailing a paper check and payment voucher to the state taxing authority. All other states use the Pay with e-file method for E-Filed returns.
About authorized IRS e-file providers
Before you can e-file federal returns, your organization must apply to become an Authorized IRS E-File Provider. To become an Authorized IRS E-File Provider, you must create an IRS e-services account, submit your application, and pass a suitability check. When completing your application, select ERO as the e-file provider option. See IRS Publication 3112 for details on becoming an Authorized IRS E-File Provider. Take note of the following:
- The e-file application process can take up to 45 days to complete. Be sure to submit your application as soon as possible.
- The following situations are changes that require resubmission of the IRS E-File Application:
- Adding/Removing a Principal or Responsible Official
- Adding/Removing a Delegated User or Contact
- Adding a Provider Option
After you are approved, you will receive an acceptance letter from the IRS with your Electronic Filing Identification Number (EFIN).
About EFTPS
The Electronic Federal Tax Payment System (EFTPS) is a service offered by the U.S. Department of the Treasury for payment of balance due amounts and quarterly estimated taxes. EFTPS lets you submit an electronic payment of balance due amounts for multiple tax returns. You can use EFTPS regardless of whether the returns were E-Filed or paper-filed.
EFTPS uses the Automated Clearing House (ACH) method for making payments. The ACH method requires you to have a checking, savings, or DDA account where funds can be redirected for the purpose of remitting balance due payments. The ACH debit information you enter in ONESOURCE Trust Tax is passed to the Treasury Financial Agent (TFA), letting the ACH to take money from the financial institution and distribute it to the U.S. Department of the Treasury.
About registering to use Massachusetts, Minnesota, and New York online services websites
The state taxing authorities for Massachusetts, Minnesota, and New York require you to register before you can use their websites to upload a balance due payment file. The following table includes a link to each registration website and provides information to help you with the registration process:
State | Website | Registration Information |
|---|---|---|
Massachusetts | To register, select New to MassTaxConnect? on the MassTaxConnect homepage. Register as a Professional Tax Preparer and create an account. When registering:
| |
Minnesota | Sign up under the Business section for Minnesota e-Services. You must get a Minnesota ID Number, then create a Business username. The 1st time you use Minnesota e-Services, you will need to set up your payment processing settings. Thereafter, many of your payment processing settings are retained. | |
About the e-file registers
On the Register Listing page, the federal e-file registers are in the
Electronic Filing
base category, and the state e-file registers are in the State Electronic Filing
base category. Any e-file custom registers can show computed amounts and, for ONESOURCE Trust Tax Tools users, status and milestones.Unless indicated in the register name, the federal e-file registers include 1041 and 5227 returns as well as 990 return types. Registers that list the returns rejected by the IRS are separate because the rejection conditions for 990 return types are in a different format from the rejection conditions for 1041 and 5227 returns.
The
1041 and 5227 returns rejected by the IRS
register includes the 1041 and 5227 returns rejected by the IRS' MeF platform.The state e-file registers include resident and nonresident state e-file information. This includes 990 state e-filing information.