e-file for Business

IRS presents

April 12, 2001

Page 1 of 6

IRS: Are you filing a tax return for a large or small business? Ask the IRS e-file experts about this easy, accurate and secure way to file for your business. Welcome to the chat! Ed and Lillie are our IRS e-file experts today, ready to answer your questions.

Lillie-IRS: Hi! Thank you for being here.

Ed-IRS: This is Ed Dickerson, thanks for joining us on this e-file chat.

Agree: What is the 941e-file Program?

Lillie-IRS: The 941 e-file program accepts and processes Forms 941, Employees Federal Quarterly Tax Return, in electronic data interchange format, and in a new non-EDI format. The returns are transmitted nationwide directly to the IRS via dial up phone lines and menu driven software. Where they are processed at the Tennessee computing center.

Shelby: How much does it cost to file 941 online?

Lillie-IRS: It costs $3.95, approximately.

Bombay: When did the 941 e-file Program begin?

Lillie-IRS: It began as a pilot in 1994, and expanded nationwide in 1996.

Cata: What are the benefits of 941e-file?

Lillie-IRS: Confidence is the first benefit. Speed, and flexibility.

Dendrol: What types of businesses can participate with this program?

Lillie-IRS: The 941 e-file program is available to any business filing returns for themselves, or reporting agents filing returns for themselves and/or other businesses. Participation is also open to software developers.

E-file 2000: What are the software requirements for the program?

Lillie-IRS: Participants may develop their own EDI or non-EDI software, or they may purchase off the shelf EDI translation software and/or Form 941 EDI preparation software. For a listing of available software, please visit our approved IRS e-file for Business Providers webpage, at www.irs.gov/elec svs/abp.html

Pro Accounts: What is 941 TeleFile?

Lillie-IRS: 941 TeleFile is an interactive computer program designed to electronically file Form 941, Employees Quarterly Federal Tax Return, using a touch tone telephone.

Query: What are the benefits of 941 TeleFile?

Lillie-IRS: The 941 TeleFile system is easy, accurate, paperless, convenient, and free. A business taxpayer can use a toll-free number listed in the Form 941 tax package to access the system, and there is nothing to mail.

Hanseatic: What is the f941?

Lillie-IRS: The Form 941 is an Employers Quarterly Federal Tax Return for employers who withhold income tax on wages, or who must pay Social Security or Medicare tax each calendar quarter.

JohnQ: How do I sign my return?

Lillie-IRS: For 941 TeleFile, you sign your return by using the filer's Social Security number and the first five digits of their last name. For 941 e-file, returns are signed with a Personal Identification Number (PIN) which is assigned when the application is approved. The filer must have signature authority for all of the returns they file.

Kristi TX: If a business filed electronically using the 941e-file Program, can the business also make electronic payments?

Lillie-IRS: Yes. Electronic payments can be made through the Electronic Federal Tax Payment System (EFTPS), a completely separate system. EFTPS is available for individuals and businesses to make any tax payments electronically. All individuals and/or businesses interested in the program must enroll prior to participation.

Page 1 of 6