Business entity processing improvements June 2018 Tax News

We have begun work on modernizing the business entity (BE) return and payment validation process. The objective is to improve the BE customer experience through more timely and accurate processing.

The project leverages technology improvements introduced during our Enterprise to Revenue (EDR) Project such as better matching of returns and payments to the correct entity, greater flexibility to prioritize workloads, improved case management to ensure the right returns get routed to the right individuals, and less need for manual review.

Beginning July 2018, the first returns to go through the new process will be 2016 Limited Liability Company (LLC) returns. Consistent with our practice, these first returns will go through an extensive quality assurance review to minimize negative impacts to taxpayers before we expand to other tax years and form types.

We will add 2017 and 2018 LLC returns in January 2019 while payments and returns for corporations, partnerships, and exempt organizations will be rolled out in future years.

Consistent with similar improvements made to our personal income tax return and payment process, the new BE process will leverage expanded data capture and perform validation of tax line items that were not previously validated, including information from tax schedules. To minimize unnecessary processing delays or return adjustments it’s important that tax preparation software conforms to our form instructions and that tax preparers do not bypass these rules in their software.