State EC Snapshots - State EFile Mandates

Alabama Department of Revenue

Mandates:

  • The agency has issued a proposed rule that would require wholesale tobacco distributors to efile their state and county tobacco tax returns, effective in 2012.
  • If a preparer prepares more than 25 individual income tax returns using tax preparation software in calendar year 2011, then for that calendar year all acceptable individual income tax returns prepared by that preparer shall be filed using electronic technology. (Regulation 810-3-28-.07)
  • If a preparer prepares more than 25 acceptable, original corporate/partnership income tax returns using tax preparation software in calendar year 2011, then for that calendar year all acceptable individual income tax returns prepared by that preparer shall be filed using electronic technology. (Regulations 810-3-39-.12 and 810-3-28-.07)
  • Corporation with assets of $5 million or more, or partnerships with 50 or more partners are mandated to e-file Tax Year 2010 Alabama corporate/partnership income tax returns, and all subsequent tax years. (Regulations 810-3-39-.12 and 810-3-28-.07)
  • Mandated e-file for sales, use and other business taxes (99 percent compliance.)
Alaska Department of Revenue

Mandates: Do not have any current plans for e-file mandates

Arizona Department of Revenue

Mandates: Do not have any current plans for e-file mandates

Arkansas Department of Finance and Administration

Mandates:

  • Mandated X12-EDI based Motor Fuel tax filing/payment via Direct Modem or Internet
California Franchise Tax Board

Mandates:

  • Business e-file – Beginning  January 1, 2015, any business entity that files an original or amended tax return for taxable years beginning on or after January 1, 2014 using tax preparation software is required to e-file their return with FTB unless a waiver is obtained. Business entity e-file waiver requests may be submitted directly to FTB using the online application available on our website. The law applies to business entities and preparers who file the return on a business entity’s behalf. Combined returns are included in the requirement. Although we accept FTB 541, California Fiduciary Income Tax Return in e-file, Estate and Trust returns are not included in this requirement.
  • Individual e-file – Beginning January 1, 2004 tax practitioners who prepare more than 100 California individual income tax returns annually and prepare one or more using tax preparation software are required to e-file all personal income tax returns. FTB may assess a penalty of $50 per return against preparers for each   return that can be e-filed that is not, unless the failure to e-file is due to reasonable cause and not willful neglect. Reasonable cause can include a taxpayer's election not to e-file. No practitioner waivers are available, however tax preparers who cannot e-file returns due to reasonable cause can submit FTB 8454, e-file Opt-Out Record for Individuals.
  • Mandatory Individual Electronic Funds Transfer – Individuals are required to remit all payments electronically once they make an estimate or extension payment exceeding $20,000 or file an original tax return with a total tax liability over $80,000 for any taxable year that begins on or after January 1, 2009. Once they meet this threshold, all subsequent payments regardless of amount, tax type, or taxable year must be remitted electronically. The first payment that triggers the mandatory e-pay requirement does not have to be made electronically. Individuals that meet these requirements and do not send the payment electronically will be subject to a one percent noncompliance penalty.
California State Board of Equalization

Mandates:

  • Taxpayers now must file online; paper returns are no longer accepted. The program was phased in, beginning with medium and large businesses that make monthly filings. All new businesses that apply for a seller's permit also will be set up for e-filing, which will capture some 165,000 new businesses a year. Those who request it can be given a one-year extension.
California Employment Development Department

Mandates: Does not have any current plans for e-file mandates.

Colorado Department of Revenue

Mandates:

  • Mandated X12-EDI Motor Fuel tax filing/payment via Direct Modem or Internet
  • Income tax filers must file electronically if claiming enterprise zone credits
Connecticut Department of Revenue Services

Mandates:

  • Return preparers who prepared 50 or more Connecticut income tax returns for the prior tax season are required to electronically file returns the next tax season. Preparers may obtain a one-year waiver from the electronic filing requirement by establishing that they cannot electronically file a return without experiencing an "undue hardship."
  • For individual taxpayers who reported a tax liability that exceeded $4,000 the prior processing year, must initiate any estimated tax payments the following year electronically
  • Taxpayers whose tax liability for the prior 12-month period ending June 30th that exceeds $4,000, are required to pay, and if available, file that tax electronically.
  • Effective for tax periods beginning on or after January 1, 2014, the Department of Revenue Services (DRS) requires everyone filing for any of the tax types listed below to file the returns and pay the associated taxes electronically.

1.     Sales and Use Tax;

2.     Business Use Tax;

3.     Room Occupancy Tax;

4.     Admissions and Dues Tax;

5.     Income Tax Withholding;

6.     Corporation Business Tax;

7.     Composite Income Tax (Partnership);

8.     Business Entity Tax;

9.     Attorney Occupational Tax return

  • For other tax types: taxpayers whose tax liability for the prior 12-month period ending June 30th that exceeds $4,000, are required to pay that tax electronically.
     
  • For IFTA tax filers, all 4th quarter 2014 returns and beyond need to be filed electronically
Delaware Division of Revenue

Mandates: For Withholding returns only (mirrors IRS criteria).

District of Columbia Office of Tax and Revenue

Mandates:

  • Beginning with corporation franchise tax returns due March 15, 2005, and unincorporated franchise tax returns due April 15, 2005, electronic filing and payment will be required for all taxpayers that owe more than $25,000. Penalties for the failure to file and pay electronically will apply where the taxpayer has been notified in writing to comply with the new electronic filing requirement and has failed to do so.
Florida Department of Revenue

Mandates:

Sales and Use Tax (includes local option sales taxes, surcharges, surtaxes, and solid waste fees) -

  • Any taxpayer, who has paid the tax or fee in the prior state fiscal year (July 1 through June 30) in an amount of $20,000 or more, must file returns and pay taxes and fees by electronic means.
  • Any taxpayer who files a consolidated return must file returns and pay taxes and fees by electronic means.
  • Any taxpayer who has two or more places of business for which the combined tax and/or fee payments equal or exceed $20,000 for the prior state fiscal year must file returns and pay taxes and fees by electronic means.
  • Effective July 1, 2012, the Florida law allows taxpayers to deduct a collection allowance only when they also file and pay their sales and use tax electronically. The collection allowance is 2.5% of the first $1,200 of taxes collected, up to $30 per tax return.

Gross Receipts-

  • Any taxpayer, who paid the tax in the prior state fiscal year (July 1 through June 30) in an amount of $20,000 or more, must file returns and pay taxes by electronic means.

Communication Service Tax-

  • Any taxpayer, who paid the tax in the prior state fiscal year (July 1 through June 30) in an amount of $20,000 or more, must file returns and pay taxes by electronic means.

Corporate Income Tax-

  • Any taxpayer who paid the tax or fee in the prior state fiscal year (July 1 through June 30) that equal or exceed $20,000 or is required to file its federal income tax return electronically, either on a separate or consolidated basis, must also electronically file any returns required for corporate income tax purposes and pay taxes and fees by electronic means.

Fuel Tax-

  • All licensees required to report information for the purpose of tracking the movement of fuel are required to file returns or reports and pay taxes (if applicable) by electronic means.

Unemployment Compensation Tax-

  • Any employer who paid unemployment tax for ten or more employees during any calendar quarter of the prior state fiscal year (July 1 through June 30) must file reports and pay taxes by electronic means.
  • Any person who prepared and reported unemployment tax directly to the Department for 100 or more employers during the prior state fiscal year must file reports by electronic means.

Clerk of the Court-

  • All Florida Clerks of Court are required to file and pay tax and court related fees electronically.

Tax Collectors-

  • All Florida Tax Collectors who remitted in excess of $20,000 in tax during the previous state fiscal year (July-June) are required to file and pay tax electronically.

    If mandated returns and/or payments are not filed or paid electronically, specific penalties for failure to comply are imposed. 

    All software/service providers of alternate forms must have an electronic filing product for filing year 2010.
Georgia Department of Revenue

Mandates:

  • For taxpayers required to pay taxes electronically or voluntarily paying electronically, the Commissioner may require submission of the associated return electronically; electronic returns that are amended must also be submitted electronically. The Commissioner may require any nonindividual taxpayer to file any return, report of other document when the federal counterpart of same is required to be filed electronically. For FAQ on Corporate e-file mandate, see: http://www.etax.dor.ga.gov/inctax/webfaq/faq-elf-corp.aspx
  • Effective January 1, 2010 any Sales & Use Tax or Withholding Tax customer with any single payment greater than $1000 must file and pay electronically. The threshold drops to $500 in 2011.
  • Georgia is not mailing any income tax booklets, only making forms available online or at public sites such as libraries
Hawaii Department of Taxation

Mandates: Does not have any current plans for e-file mandates

Idaho State Tax Commission

Mandates: Does not have any current plans for e-file mandates

Illinois Department of Revenue

Mandates:

  • Effective January 1, 2011, paid preparers who file more than 100 Illinois Individual Income Tax returns must file those returns electronically.
  • Telecommunication Tax e-filing/e-payment mandate imposed on taxpayers that pay $1,000 or more in tax each month
  • Cigarette Tax e-filing mandate for taxpayers that file 30 or more schedule transactions each month
  • E-Filing of Motor Fuel Taxes
Indiana Department of Revenue

Mandates:

  • A new law requires electronic reporting and payment of Indiana's Other Tobacco Products tax.
  • A professional tax return preparer who files more than 50 personal income tax returns in a calendar year for resident or nonresident individuals must file all personal income tax returns in an electronic format in the immediately following calendar year. If a tax preparer is part of a firm, the mandate applies to the firm as a whole. If an individual employed by the firm prepares more than 50 returns for clients other than the firm's clients, that individual must also electronically file the returns. (The threshold drops to 10 in 2013.) A penalty of $50 for each return not filed in an electronic format, with a maximum penalty of $25,000 per calendar year, will be imposed.
  • Effective Jan. 1, 2010, all new businesses in Indiana must file and pay their sales and withholding taxes electronically.
  • Effective Jan. 1, 2013, all businesses in Indiana must file and pay their sales and withholding taxes electronically.
  • Any employer that files more than 25 W-2s in a calendar year is required to file both the WH-3 form and their W-2s electronically. This law (IC 6-3-4-16.5) applies to W-2s filed after Dec. 31, 2010. The law was expanded, effective July 1, 2012, to include 25 W-2G, 1099-R, and WH-18 statements.
Iowa Department of Revenue

Mandates:

  • Iowa has eliminated the distribution of quarterly returns as described above but does not mandate the electronic filing of these returns.
  • Iowa only mandates electronic filing and payment for semi-monthly filers and fuel taxes.
Kansas Department of Revenue

Mandates:

  • The mandate threshold for e- filing has been reduced from $100,000 to $45,000 in sales and withholding remittances. Also, preparers who file 50 or more returns a year are required to file at least 90 percent of their returns electronically. A hardship waiver is available.
  • Employers of 51 or more are required to file electronically as of Jan. 1; a Web-based application can be used for the filing of withholding tax reports of federal W-2 and 1099 information and the state's KW-3E withholding reconciliation form.
  • Mandated X12-EDI based Motor Fuel tax filing via Web or direct modem
  • Mandated X12-EDI based Motor Vehicle Kansas Insurance Reporting
  • Entities with $100,000 annual combined payment liability are required to pay through EFT
Kentucky Department of Revenue

Mandates:

  • Kentucky requires paid tax preparers to electronically file Kentucky individual income tax returns if they are required to electronically file a return for federal income tax purposes. Paid tax preparers who file more than 10 individual income tax returns are required to file electronically. 

  • Any preparer who fails or refuses to comply with the mandate shall pay a return processing fee of $10 for each return not filed as required, unless it is shown that the failure is due to reasonable cause. Kentucky requires a preparer to provide a Form 8948-K, Preparer Explanation For Not Filing Electronically, with any paper return filed as an exception.
Louisiana Department of Revenue

Mandates:

  • For personal income tax, preparers who file 100 or more returns:
    In 2010 - 60% of all returns must be efiled
    In 2012 - 90% of all returns must be efiled
    Failure to comply with the electronic filing requirements will result in the assessment of a penalty of one hundred dollars or five percent of the tax, whichever is greater. The electronic filing requirement may be waived if complying with the requirement would cause undue hardship.
  • Louisiana is not mailing any income tax booklets, making forms available online or at public sites such as libraries
Maine Revenue Services

Mandates:

  • If a tax return preparer prepared 50 or more original Maine individual income tax returns in calendar year 2009, then 85% of all original Maine individual income tax returns prepared in calendar year 2010 by that preparer must be filed by electronic data submission.
  • The state may require the electronic filing returns by employers or payroll processors that withhold taxes on behalf of 100 or more employees. A civil penalty will apply to certain taxpayers that are required to file returns electronically, but fail to do so. The measure amends state code Section 187-B to provide that a $50 penalty will be imposed on "a person who fails to file electronically." The penalty will be assessed when: two or more returns in any consecutive six-month period are not filed electronically and the person has been notified in writing of their noncompliance; or two or more returns in any consecutive six-month period do not comply with the requirements applicable to electronic filings.The amendments apply to returns filed for periods beginning on or after Jan. 1, 2006.
Maryland Comptroller of Maryland

Mandates:

  • For any taxable year beginning after December 31, 2010, a preparer who has prepared more than 100 qualified returns in the prior taxable year is required to file the returns electronically. The Act authorizes the Comptroller to impose on a preparer a $50 penalty for each return that is not filed electronically in compliance with this Act, unless the preparer is able to show that the failure to comply is due to reasonable cause and not due to willful neglect. The total penalties assessed may not exceed $500 for all returns filed by the preparer in a taxable year. Waivers are available. Tax-General Article �10-824
  • Under a new Maryland law, all persons offering individual tax preparation services must become licensed with the State Board of Individual Tax Preparers by June 1, 2010.
Massachusetts Department of Revenue

Mandates:

  • Personal income taxpayers who have rental, royalty and REMIC income or loss and farm rental income and expenses; income or loss from partnerships and S corporations; and income or loss from grantor-type trusts and non-Massachusetts estates or trusts are required to report income or loss from these sources on a Schedule E. For tax years beginning on or after January 1, 2008, any taxpayer with income or loss reported on a Schedule E must file his or her tax return using computer-generated forms produced by third-party software. The tax return may be generated by the taxpayer or by a tax professional. The taxpayer is encouraged, but not required, to submit the return electronically. Paper forms produced using the third-party software product will contain a two-dimensional (2D) bar code and will also be accepted. If the taxpayer hires an income tax preparer to complete the taxpayer's taxes, the preparer must follow the Commissioner's electronic filing rules. This does not affect the payment method. Taxpayers are encouraged, but not required, to make their tax payments electronically.
  • Employers who file quarterly unemployment insurance�reports which report a total quarterly payroll of $50,000 or more shall�file the report electronically. Once an employer is required to file�electronically, they must continue to file electronically even if their�total payroll drops below $50,000. Beginning with the quarter ending�12/31/08, all employers who file quarterly unemployment insurance�contribution reports shall file the report electronically.
  • All payroll processing services who file quarterly�unemployment insurance contribution reports on behalf of any�employers�for any quarter during a calendar year shall file electronically. Prior�to 12/31/07, only payroll processing services who filed on behalf of 500�or more employers were required to file electronically. Failure to file�as prescribed by law could result in the payroll processing service�losing permission to file reports on behalf of employers.
  • Effective February 16, 2004, software generated forms that are printed and mailed to the Department of Revenue must contain a 2-D barcode or the return will be sent back to the taxpayer unprocessed.
  • For tax years beginning on or after January 1, 2011, income tax return preparers who completed 10 or more original Massachusetts Forms 1 and 1-NR-PY, including those e-filed, during the previous calendar year are required to use electronic means to file all personal income tax returns unless the taxpayer specifically directs on the paper form that filing be on paper. The preparer must continue using electronic means to file returns in all subsequent years unless the preparer completed no more than 25 original individual income tax returns during the previous calendar year.
  • For tax years beginning on or after Jan. 1, 2005, income tax return preparers who completed more than 100 timely original Massachusetts Forms 1 and 1-NR-PY during the previous year are required to file all personal income tax returns electronically. The preparer is required to continue using electronic means to file personal income tax returns in all subsequent years unless the preparer completed no more than 25 original individual income tax returns during the previous calendar year. However, a preparer is not required to electronically file a return if the taxpayer had specifically directed that the return not be filed by electronic means.
  • Rule requires entities with $10,000 annual combined payment liability for wage withholding, meals, room occupancy, sales and use tax, and sales on telecommunications to submit returns via e-file (even zero balance due returns) and must pay electronically. Gasoline, jet fuels, and special fuels with a payment greater than $10,000 in the preceding tax year must pay electronically in all subsequent years .
  • For tax years beginning on or after Jan. 1, 2004, any extension request and payment made by or on behalf of a personal income taxpayer has to be made electronically if a payment of $5,000 or more accompanies the extension request.
  • Fiduciaries with a net taxable income of $50,000 or more are required to file and pay electronically, as of Jan. 1, 2004.
  • Beginning with the first calendar quarter of 2005, any employer or payor of income filing wage reports for 50 or more individuals would be required to file a quarterly wage report electronically.
  • Extension requests for corporate excise tax would have to be made electronically if the taxpayer is required to file and pay electronically under TIR 04-30. Corporations with more than $100,000 in gross receipts, sales, or income would have to make extension requests and accompanying payments electronically as of Jan. 1, 2005. Also, as of Jan. 1, 2005, any corporation making a payment of $5,000 or more with its corporate excise extension request would be required to file the request and make payment using electronic means.
  • Effective February 16, 2004, software generated forms that are printed and mailed to the Department of Revenue must contain a 2-D barcode or the return will be sent back to the taxpayer unprocessed.
  • Partnerships with either 25 or more partners, or $50,000 or more in gross income or ordinary loss; partnerships with $100,000 in gains or losses through sale of stock (see TIR 04-30 for definitions) must file electronically.
  • Fiduciaries with total Part A, Part B and Part C net taxable income of $50,000 or more must pay electronically.
  • Pension payers filing Form M-945 and withholding income tax for payees must file and pay electronically.
  • Third party bulk filers (withhold and file for employers' wage withholding obligation) must file and pay electronically.
  • Payers of more than $10,000 in motor fuels excise in preceding calendar year must pay electronically.
  • Cigarette stampers must pay electronically (unless stamps picked up and paid at DOR).
Michigan Department of Treasury

Mandates:

  • Preparers completing more than 10 personal income tax returns are required to e-file all eligible returns that are supported by their software.
  • Preparers are also required to e-file all eligible Michigan Business Tax (MBT) and Corporate Income Tax (CIT) returns that are supported by their software.
  • Software developers are required to support e-file for all eligible forms that are included in their tax preparation software.�

    See www.MIfastfile.org for more information.
Minnesota Department of Revenue

Mandates:

  • Tax preparers that prepared more than 10 personal income tax returns for the previous year are required to file all PIT returns electronically. State law (M.S. 289A.08, subd. 16) requires tax preparers who are required to electronically file Minnesota individual income tax returns to pay a $5 fee for each original Form M1 that is filed on paper that could have been e-filed. The fee will be waived only if the IRS or the department requires the federal or Minnesota return to be filed on paper.
  • Employers who must withhold Minnesota individual income taxes for more than 100 of their employees would be required to file the withholding statements (W-2s) electronically, effective for wages paid in tax year 2008. The 100-statement threshold will decrease to 50 statements for tax year 2009; 25 statements for tax year 2010; and 10 statements for tax year 2011 and later years.�
  • Businesses with $20,000 or more in tax during previous fiscal year ending June 30th are required to make all tax payments electronically. In 2007, the threshold on this mandate is $10,000 in tax during the previous fiscal year ending June 30th.
  • Businesses with $120,000 or more in sales and use tax during the previous fiscal year ending June 30th are required to pay 85% of their estimated June sales and use tax liability two business days before the end of June. The remaining payment for June is due by August 20th.
  • Payroll Providers who take control of clients funds must file all returns and make all payments electronically.
Mississippi Department of Revenue

Mandates:

  • Electronic File and Pay mandate requirements are in place for withholding, sales, petroleum, corporate and other tax types - subject taxpayers those with over $20K in previous-season liability, and those that file multiple schedules/forms (for example withholding).
  • Corporate returns with 100 or more K-1s must e-file.
  • Mississippi is not mailing any income tax booklets, only making forms available online or at public sites such as libraries.
Missouri Department of Revenue

Mandates:

  • Mandated electronic filing and payment of quarter-monthly withholding and quarter-monthly sales tax accounts
Montana Department of Revenue

Mandates

•  There is a mandate effective July 1, 2013 that entities that have more than 100 partners must electronically file Partnership returns.

•  All taxes due the state must be paid by electronic funds transfer whenever the amount due is $500,000 or greater. Whenever the payment of taxes is required to be made by EFT under this section and the due date falls on a Saturday, Sunday, or legal holiday, the payment may be made on the first business day thereafter.

Nebraska Department of Revenue

Mandates:

  • Effective Jan. 1, 2013,in and out of state tobacco reporters will be required to file electronically.
  • Effective Jan. 1, 2010, paid preparers filing more than 25 returns are required to file electronically.
  • Web filing of Motor Fuel tax (X12-EDI format) via FTP protocol or E-mail (PGP encryption optional - Nebraska public key posted on Web site)
  • The EFT liability level is decreasing annually through 2017 for Sales and Use tax, Withholding, Corporate Income tax, and for All Motor Fuels tax payments. Refer to�http://www.revenue.ne.gov/electron/mandate_info.html�to verify the current mandate level in effect.
Nevada Department of Taxation

Mandates: Does not have any current plans for e-file mandates

New Hampshire Department of Revenue Administration

Mandates:�

  • RSA 21-J:33, III states that for the failure to comply with the electronic payment requirements under RSA 21-J:3, XXI, a penalty shall be added to the amount of tax due equal to 5 percent of the amount of such tax not to exceed $5,000
New Jersey Division of Taxation

Mandates:

  • Practitioners who prepared 11 or more New Jersey resident income tax returns must file their clients' returns via one of the state's three electronic filing services.
  • Beginning with the quarter ending March 31, use of paper returns by employers is eliminated and payroll forms NJ-500, 927, 927-W, 927H, and WR-30 must be filed electronically.
  • Mandate that all partnerships with 10 or more partners must file their NJ 1065 partnership return electronically beginning with returns filed as of TY2002
  • Beginning to slowly phase in mandate of Sales tax E-filing, at Director's discretion; also slowly removing paper as an option.
New Mexico Taxation and Revenue Department

Mandates:�

  • Mandatory e-file of personal income tax returns by preparers filing more than 25 returns; taxpayers can opt out in writing; penalty for noncompliance is $5 per return;
  • Mandatory e-file of CRS-1 returns if the average tax due for the previous year is more than $1,000. Exception is available. �
  • Mandatory e-file of annual detail reporting for oil and gas proceeds and pass-through entity withholding if more than 50 payees; Exception is available.
  • Oil and Gas taxpayers that have more than 150 lines of data are required to file electronically.
New York State Department of Taxation

Mandates:

  • (1) If a tax return preparer prepared more than 100 original tax documents during any calendar year beginning on or after January 1, 2007, and if, in any succeeding calendar year that tax return preparer prepares 11 or more authorized tax documents using tax software, then, for that succeeding calendar year and for each subsequent calendar year thereafter, that original tax document and all subsequent authorized tax documents prepared by that tax return preparer must be filed electronically. (2) If a taxpayer does not utilize a tax return preparer to prepare an authorized tax document during any calendar year beginning on or after January 1, 2008, but instead prepares that document itself using tax software, then, for that calendar year and for each subsequent calendar year thereafter, all authorized tax documents prepared by the taxpayer using tax software that has e-filing capability must be filed electronically, in accordance with instructions prescribed by the commissioner. (3) Penalties: Preparers- $500 for the first failure, $1000 for each succeeding failure.
    (2) Form TR-800, Taxpayer Opt-Out and Reasonable Cause Record for Tax Return Preparers, has been eliminated; and
    (3) a separate fee cannot be charged for e-file.
    These changes are effective for returns beginning January 1, 2011. Notice, New York Department of Taxation and Finance, October 13, 2010.
  • A corporation must e-file all general business and NYS S corporation (Article 9-A) returns and extensions beginning on January 1, 2009, and electronically pay the balance due on those tax documents if the corporation meets all three of the following conditions:
    - It does not use a tax return preparer to prepare Article 9-A general business corporation and S corporation tax returns and/or extensions;
    - It uses tax software that has been approved by the Tax Department for e-filing business corporation and S corporation tax returns and/or extensions; and
    - It has broadband internet access.
  • Beginning with the return due on March 20, 2009, you must Web File Form Sales Tax PrompTax ST-810 on our Online Tax Center if your business meets all four of the following conditions:
    - It is subject to the PrompTax requirements
    - It does not use a tax preparer to prepare Form ST-810;
    - It uses a computer to prepare, document or calculate Form ST-810 or related schedules, or is subject to the corporation tax e-file mandate
    - It has broadband internet access.
  • Effective January 2010, the above individual / partnership mandate will be expanded to include Fiduciary return filings.
New York City Department of Finance

Mandates:

  • New York City mandates electronic filing for both General Corporation Tax and Unincorporated Business Tax. NYC's mandate thresholds generally follow the New York State's preparer mandate guidelines.
North Carolina Department of Revenue

Mandates: Does not have any current plans for e-file mandates

North Dakota Office of State Tax Commissioner

Mandates:

  • The only e-file mandates are for Oil & Gas Production Taxes, and (for payroll services only) to file their employer clients' Withholding Tax returns, W-2s and payments electronically, if they are doing the federal filings electronically.
  • The state is limiting its booklet mailings to taxpayers who filed a paper return last year.
  • Proposed legislation to mandate monthly sales tax filers to e-file.
Ohio Department of Taxation

Mandates :

  • Beginning in tax year 2012 paid tax preparers who filed more than 11 tax returns during the  calendar year or during any subsequent year must, beginning on Jan. 1, 2013, use electronic filing technology to file state income tax returns. Acceptable methods of electronic filing include the IRS federal and state e-file program, Ohio I-File, or Ohio TeleFile. This requirement does not apply to paid tax preparers who, during the previous calendar year, prepared less than 11 returns.(Ohio Revised Code section 5747.082)
  • E-filing is mandatory for both monthly and semi-annual sales tax returns
  • Ohio has mandated that commercial activity taxpayers that have gross receipts exceeding $1 million annual file electronically.
Oklahoma Tax Commission

Mandates:

  • All "specified tax return preparers" must file individual income tax returns electronically. The term specified tax return preparer has the same meaning as provided in Section 6011 of the Internal Revenue Code. 68 O.S. � 2385
  • Sales and Withholding tax E-File is mandated for certain taxpayers.
Oregon Department of Revenue

Mandates:

  • Preparer mandate for 1040 e-filing same as IRS
  • Corporate mandate for 1120 e-filing same as IRS
  • EFT mandate same as IRS
  • Businesses and all payroll service providers required to report W-2 information electronically
  • Starting in tax year 2013, businesses and all payroll service providers are required to report 1099-Misc, 1099-R, 1099-G, and W-2G information electronically if they have 10 or more of any one type
  • 2-D barcode mandate for any PIT form that is submitted on paper format instead of electronically filed
Pennsylvania Department of Revenue

Mandates:

  • Effective immediately, for returns filed in calendar years on or after January 1, 2014, third party preparers who submitted at least 11 Pennsylvania Income Tax returns must file  returns electronically. Additionally, a published notice defines third-party preparer, details other requirements regarding the 11-return threshold, and outlines situations in which preparers are not required to e-file a return. (43 Pa.B. 5774)
  • There is a mandate for the filing of Corporate and Partnership returns
  • The PA Department of Revenue has made it easier for Sales and Use Tax account holders to file and pay their Sales Taxes by replacing its current paper-based system with two free electronic filing options:
    • Filing via the Internet (e-TIDES web site)
    • Filing via a toll-free telephone filing system.
  • The Department stopped the mailing of sales tax coupon and employer withholding coupon booklets.
Rhode Island Department of Revenue

Mandates:

  • Any software developer/provider marketing tax return preparation software must utilize 2-D bar coding technology in the final printed version of the completed tax form, or support electronic filing. The specific tax forms and file layouts are listed on the Division of Taxation web site at http://www.tax.state.ri.us/ under software developers.
  • Tax return preparers that prepared 100 or more Rhode Island corporate and individual tax returns in the prior year must file returns for their clients electronically; the filing requirement may be waived if filing electronically will cause undue hardship. 

    A person employed by a paid preparer with multiple offices is required to file electronically if the total of all tax returns filed from all offices is more than 100, regardless of whether a single office of the same preparer only files 100 returns or less. Paid preparers who fail to abide by this electronic filing mandate, or otherwise file false or improper Rhode Island tax returns, may be precluded from preparing and filing future state tax returns. 

  • Effective 1/1/2010 any sales tax permit holder who remits an average of $200 or more per month is required to make those payments electronically.
  • Effective 1/1/2010 any employer with 10 or more employees during the previous calendar year must make all withholding tax payments electronically.
South Carolina Department of Revenue

Mandates:

  • A tax return preparer who prepares one hundred or more returns for a tax period for the same tax year shall submit all returns by electronic means where electronic means are available. Where electronic means are not available to file the return, but 2D barcode is available, the preparer must use 2D barcode. If a taxpayer checks a box on his return indicating a preference that his return is to be filed by another means, the preparer may submit that return by another means. Tax return preparer means the business entity and not the individual location or individual completing the return. A person who fails to comply may be penalized in an amount to be assessed by the department equal to fifty dollars for each return. If compliance is a substantial financial hardship, a tax return preparer may submit an exemption request. Sec. 12-54-250
  • E-filing is mandated for individuals if they prepare their taxes using software. The mandate is in effect until South Carolina hits 85% e-file.
  • Mandated all Withholding taxpayers who make 24 or more payments annually or who submit payments of $15,000+ during a quarter.
  • Mandated electronic payment for Sales and Motor Fuel taxpayers with over $15,000 annual tax liability.
  • Mandated efiling of Motor Fuel returns
South Dakota Department of Revenue and Regulation

Mandates:

  • Requested legislation that would require taxpayers who owe more than $1,000 per year in sales, use or contractor's excise tax to file and pay electronically
Tennessee Department of Revenue

Mandates:

  • Beginning January 1, 2013, certain franchise & excise tax returns prepared using a certified software program, certain sales & use tax returns, and all professional privilege tax returns must be filed electronically. This requirement is in addition to those previously identified sales and use tax accounts that are currently required to file electronically. Regardless of which electronic filing option you choose, tax payments must be made by Electronic Funds Transfer (EFT).
  • Sales and use tax filing mandated for those required to pay electronically; mandate threshold is $500 in average payments/month; payment warehousing is now available. The sales and use electronic filing may either be through a web portal or through certified software vendors using EDI program.
  • Mandated X12-EDI Filing for Motor Fuel excise tax; filing direct to state via FTP or e-mail.
Texas Comptroller of Public Accounts

Mandates:

  • Texas requires companies that pay more than $100,000 in tax annually to both file returns and pay taxes electronically. Companies that cannot comply with some of the requirements may be eligible for a waiver. A 5 percent penalty will apply to a company that does not file electronically when required to.
  • X12-EDI filing for Motor Fuel Excise via direct modem
Utah State Tax Commission

Mandates:

  • Tax preparers that file more than 100 income tax returns in a calendar year beginning on or after Jan. 1, 2005, will be required to file all such returns using scan technology or by electronic means, under legislation (H.B. 190) enacted March 16. However, the measure provides that the filing requirement will not apply if:
    • a schedule must be attached to the return that cannot be filed using scan technology or electronic means, or
    • the taxpayer requests in writing that the income tax preparer not file the return using scan technology or electronic means, or
    • the Utah Tax Commission waives the requirement that a return be filed by scan technology or electronic means. 

      A tax preparer may obtain such a waiver from the commission by demonstrating that the use of scan technology or electronic means would result in an undue hardship. The filing requirement also does not apply to amended returns or returns for any taxable year that begins before the first day of the current taxable year.
Vermont Department of Taxes

Mandates: Does not have any current plans for e-file mandates

Virginia Department of Taxation

Mandates:

  • Corporations subject to the income tax filing requirements for the Virginia Form 500 must file their returns and make their payments electronically, beginning January 1, 2013. The new provision affects only corporation income tax filers, and does not apply to pass-through entities that file their returns on Virginia Form 502. The electronic filing and payment requirement applies to any Form 500 filed for taxable years beginning on or after January 1, 2012, extension payments and return payments for taxable year 2012, and estimated tax payments for taxable year 2013. Any corporation that is not able to comply with the requirement by January 1, 2013 may request a hardship waiver.

  • Tax Preparers that prepare 100 or more individual income tax returns are required to file returns using electronic filing software. A tax preparer is defined as a person who prepares, or who employs one or more individuals to prepare, an income tax return for compensation. The return threshold is applied based on the total individual income tax returns prepared by all tax preparers in all offices. A tax preparer can request a waiver in writing based on undue hardship, or taxpayers may elect not to have their returns e-Filed. House Bill 1045
  • Tax Preparers/Payroll Service Providers who act on behalf of 100 or more taxpayers must remit withholding payments by ACH Credit transactions
  • Business taxpayers whose average monthly liability exceeds $20,000 must pay their state taxes by EFT
  • E-Filing of Motor Fuel Taxes - mandated electronic filing for Suppliers, Terminal Operators, Importers, and other licensees
  • Employers with more than 250 employees are required to send their W-2s in electronically through either Web Upload or on magnetic media
Washington Department of Revenue

Mandates:

  • Substitute Senate Bill (SSB) 5571 requires all businesses whose annual tax liability is greater than $4,800 to file and pay their taxes electronically starting with the July 2009 Excise Tax return due on August 25th. The bill also states businesses with extenuating circumstances may request a waiver. 
  • Mandatory electronic funds transfer (EFT) for all businesses with an annual tax liability of $240,000 or more effective January 1991. Other filers may participate on a voluntary basis. 
West Virginia Department of Revenue

Mandates:

  • Income tax preparers who filed more than 25 personal income tax returns and use tax preparation software to complete one or more of these returns, must file them electronically for the current tax year. Tax preparers may opt-out of the e-file provision if the preparer has clients who prefer not to e-file. Starting in 2012, taxpayers who pay more than $10,000 in any tax for a single year must file all returns electronically.
Wisconsin Department of Revenue

Mandates:

  • Beginning January 2011, practitioners who filed 50 or more Wisconsin income tax returns in the previous tax year are required to e-file returns. A practitioner can ask for a waiver from the electronic filing requirement if the requirement causes an undue hardship; in addition if a taxpayer wishes to file a paper tax return, the practitioner is not required to electronically file that return. Admin. Rule Section Tax 2.08(3)(b)
  • Added two new mandates by administrative rule for the 
    Annual Reconciliation of Withholding Tax (Form WT-7) and for Pass-Through Entity Withholding (Form PW-1). There are free web-based efiling applications as well as direct XML filing alternatives available for both.
  • Sales and use returns are also now required to be filed electronically after 90 days notice, beginning with monthly filing frequency taxpayers. Waivers are available.
  • Mandated X12-EDI Motor Fuel Excise tax filing via direct modem or Internet (since 1996)
Wyoming Department of Revenue

Mandates : Does not have any current plans for e-file mandates

Source: Federation of Tax Administrators 
  Mandates - this covers e-file as well as other technologies such as barcoding.

Updated: October 21, 2014