Code Section 6011

Code Section	Effective Date	Name of Act	Name of Provision	10yr Revenue Estimate ($millions)
6011(e)	12/31/2010	The Worker, Homeownership, and Business Assistance Act of 2009 (Public Law 111–92)²⁹⁷	Expansion of Electronic Filing by Return Preparers	negligible
6011	3/18/2010	The Hiring Incentives to Restore Employment Act	Secretary permitted to require financial institutions to file certain returns related to withholding on foreign transfers electronically	*see sec. 1471

*Note on Revenue Estimate

See section 1471, provision: Reporting on certain foreign accounts.

Expansion of Electronic Filing by Return Preparers

Explanation of Provision

The provision generally maintains the current rule that regulations may not require any person to file electronically unless the person files at least 250 tax returns during the calendar year. However, the proposal provides an exception to this rule and mandates that the Secretary require electronic filing by specified tax return preparers. ‘‘Specified tax return preparers’’ are all return preparers except those who neither file nor reasonably expect to file more than ten individual income tax returns on behalf of clients in a calendar year. The term ‘‘individual income tax return’’ is defined to include returns for estates and trusts as well as individuals.

Secretary permitted to require financial institutions to file certain returns related to withholding on foreign transfers electronically

Explanation of Provision

The provision provides an exception to the general annual 250 returns threshold and permits the Secretary to issue regulations to require filing on magnetic media for any return filed by a ‘‘financial institution’’ ⁶³⁰ with respect to any taxes withheld by the ‘‘financial institution’’ for which it is personally liable.⁶³¹ Under the provision, the Secretary is authorized to require a financial institution to electronically file returns with respect to any taxes withheld by the financial institution even though such financial institution would be required to file less than 250 returns during the year.

The provision also makes a conforming amendment to section 6724, permitting assertion of a failure to file penalty under section 6721 against a financial institution that fails to comply with the electronic filing requirements.

297- H.R. 3548. The bill passed the House on the suspension calendar on September 22, 2009. The Senate passed the bill with an amendment on November 4, 2009. The House agreed to the Senate amendment on the suspension calendar on November 5, 2009. The President signed the bill on November 6, 2009. For a technical explanation of the bill prepared by the staff of the Joint Committee on Taxation, see Technical Explanation of Certain Revenue Provisions of the ‘‘Worker, Homeownership, and Business Assistance Act of 2009’’ (JCX 44–09), November 3, 2009.
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630- See section 1471(d)(5) in section 101 of the Act.
-Return to Explanation of Provision

631- The ‘‘financial institution’’ is personally liable for any tax withheld in accordance with section 1461 and section 1474(a) under section 101 of the Act.
-Return to Explanation of Provision

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