What does SENSE OF CONGRESS. of Electronic Filing Improvement and Logistical Efficiency Act of 2025 do?

This section expresses the sense of Congress regarding employment tax form filing. Congress believes businesses and their representatives should be able to file all employment tax forms electronically. The current reliance on paper filings by the IRS and businesses is considered unsustainable. Obstacles to electronic filing are identified as both structural and behavioral. The IRS is directed to streamline electronic filing processes to make them easy and efficient. Internal revenue laws should incentivize electronic filing to change taxpayer behavior.

What does ELECTRONIC FILING FOR EMPLOYMENT TAX RETURNS. of Electronic Filing Improvement and Logistical Efficiency Act of 2025 do?

This section requires the Internal Revenue Service (IRS) to establish an automated electronic process for employers to fulfill filing and payment requirements for taxes under subtitle C of the Internal Revenue Code. The IRS must make this process available within one year of the Act's enactment. The initial focus will be on the adjusted employer's quarterly Federal tax return or claim for refund (Form 941-X). The IRS is directed to ensure the electronic filing process is fully automated and the most convenient and efficient method for meeting filing and payment requirements.

What does ELECTRONIC FILING TAX CREDIT FOR EMPLOYERS. of Electronic Filing Improvement and Logistical Efficiency Act of 2025 do?

This section amends the Internal Revenue Code of 1986 to establish an electronic filing credit for employers. Employers required to make quarterly tax returns may receive a $1,000 credit for the first calendar quarter they file all taxes electronically. A subsequent $1,000 credit may be elected in the following year for another quarter of electronic filing. The credit is limited to the amount of applicable employment taxes. Any excess credit can be carried forward to the following calendar quarter. If an employer fails to file electronically after receiving a credit, the tax for that quarter is increased by the amount of the credit, and no further credits are allowed. The Secretary may provide exceptions for circumstances like lack of broadband access or emergency situations. Third-party providers who file at least 99% of returns electronically may avoid credit recapture. The credit does not apply to governmental entities, with an exception for certain 501(c)(1) organizations. The amendments apply to calendar quarters beginning after the enactment of this Act.

What does USER FEE FOR PAPER FILING OF EMPLOYMENT TAXES. of Electronic Filing Improvement and Logistical Efficiency Act of 2025 do?

This section amends the Internal Revenue Code of 1986 by adding a new section regarding user fees. The Secretary is authorized to impose a $250 user fee on paper submissions of employment tax returns. Exceptions to the user fee are established for circumstances where electronic filing is not feasible, including employers not required to make quarterly returns, first-time submissions, those with limited broadband access, emergency situations, and victims of identity theft. Third-party providers who file at least 99% of their returns electronically are exempt from the user fee. The amendments apply to returns for periods ending more than two years after the Act's enactment. A clerical amendment updates the table of sections for chapter 25 of the Internal Revenue Code.

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Electronic Filing Improvement and Logistical Efficiency Act of 2025

Q: What does Preamble of Electronic Filing Improvement and Logistical Efficiency Act of 2025 do?

This bill proposes to amend the Internal Revenue Code of 1986. The stated purpose is to improve the electronic filing process for employment taxes.

Q: What does SHORT TITLE. of Electronic Filing Improvement and Logistical Efficiency Act of 2025 do?

This bill is formally titled the Electronic Filing Improvement and Logistical Efficiency Act of 2025.

Last updated: 12/4/2025 · Introduced: 12/4/2025

Author: Nicole Malliotakis (R-NY)

TL;DR (AI)

This bill mandates the IRS to establish an automated electronic filing system for employment taxes, prioritizing Form 941-X and aiming for ease and efficiency.
Employers who transition to full electronic filing may receive a $2,000 tax credit, but face increased tax liability and loss of future credits if they revert to paper filing.
The bill introduces a $250 user fee for paper submissions of employment tax returns, with exceptions for situations where electronic filing is not feasible and for third-party providers with high electronic filing rates.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 4 more.

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