,i #aaith ,,congress #ast ,session ,h4 ,r4 #fdeh ,,in ,,the ,,house ,,of ,,representatives ,december #d1 #bjbe,ms4 ,malliotakis 7for herself1 ,mr4 ,morelle1 and ,mr4 ,suozzi7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to improve the electronic filing process for employment taxes4 #a4 ,short title ,this ,act may be cited as the ,electronic ,filing ,improvement and ,logistical ,efficiency ,act of #bjbe4 #b4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 businesses and their third-party representatives should be able to file all employment tax forms and schedules1 including amended returns1 electronically2 7#b7 the current prevalence and reliance on paper by both the ,internal ,revenue ,service and private sector businesses for quarterly and annual employment tax return filings is not sustainable and must be addressed immediately2 7#c7 the obstacles to electronic filing are both structural and behavioral2 and 7#d7 the ,internal ,revenue ,service must streamline the process for filing employment returns electronically1 making it as easy and efficient as possible1 while the internal revenue laws must incentivize the use of electronic filing to help rapidly overcome longstanding taxpayer behaviors4 #c4 ,electronic filing for employment tax returns ,not later than #a year after the date of the enactment of this ,act1 the ,internal ,revenue ,service shall-- 7#a7 make available to employers fully-automated electronic process for satisfying all filing and payment requirements 7including amended returns7 for taxes imposed under subtitle ,c of the ,internal ,revenue ,code1 7#b7 first focus on making available pursuant to paragraph 7#a7 the adjusted employer's quarterly ,federal tax return or claim for refund 7,form #ida-,x71 and 7#c7 make all necessary technical and business changes to the electronic filing process to ensure that the process is fully automated on the front- and back-end and that electronic filing is the most convenient and efficient means of meeting such filing and payment requirements4 #d4 ,electronic filing tax credit for employers 7a7 ,in general ,subchapter ,d of chapter #ba of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #cace4 ,electronic filing credit for employers 7a7 ,in general ,in the case of any employer required to make a quarterly return of the taxes imposed by subtitle ,c1 there shall be allowed as a credit against applicable employment taxes with respect to such employer an amount equal to-- 7#a7 #a1jjj for the calendar quarter for which the return and payment of such taxes are for the first time all made electronically1 and 7#b7 in the year following the year in which a credit is first determined for a calendar quarter under paragraph 7#a71 #a1jjj for #a such calendar quarter elected by the employer in such year for which the return and payment of such taxes are all made electronically4 7b7 ,credit limited to employment taxes2 carry forward 7#a7 ,limit ,the credit allowed by subsection 7a7 with respect to any calendar quarter shall not exceed the applicable employment taxes for such calendar quarter on the wages paid with respect to the employment of all employees of the employer4 7#b7 ,carryforward ,if the amount of the credit under subsection 7a7 exceeds the limitation of paragraph 7#a7 for any calendar quarter1 such excess shall be treated as a credit allowed under subsection 7a7 against the applicable employment taxes for the following calendar quarter4 7c7 ,definition and special rules 7#a7 ,recapture 7,a7 ,in general ,in the case of an employer allowed a credit under subsection 7a7 against an applicable employment tax for any calendar quarter1 if the employer for any subsequent calendar quarter fails to make the return and payment of applicable employment taxes electronically1 such tax shall for such subsequent calendar quarter be increased by the amount of such credit so allowed4 7,b7 ,no credit following recapture ,in the case of an employer with respect to which subparagraph 7,a7 applies for any quarter1 no credit shall be allowed under subsection 7a7 for any subsequent quarter4 7#b7 ,exception for extraordinary circumstances 7,a7 ,extraordinary circumstances ,a taxpayer shall not be treated as failing to make the return and payment of applicable employment taxes electronically for purposes of paragraph 7#a7 under such circumstances as the ,secretary may by exception provide1 including an employer's lack of ready access to broadband or convenient online services due to rural or other geographic barriers or emergency situations where electronic filing and payment would cause undue hardship4 7,b7 ,deemed compliance for certain bulk filers ,for purposes of this section1 in the case of a third party provider1 including a payroll service provider1 who for the #a-year period preceding the filing of any return to which paragraph 7#a77;,a7 would apply 7without regard to this subparagraph7 filed electronically at least #ii percent of all returns described in subsection 7a7 that were made by the provider during such period1 no credit shall be recaptured under paragraph 7#a77;,a7 by reason of such return4 7d7 ,applicable employment taxes ,for purposes of this section1 the term applicable employment taxes means the following3 7#a7 ,the taxes imposed by subsections 7a7 and 7b7 of section #caaa4 7#b7 ,so much of the taxes imposed by section #cbba as are attributable to the rates in effect under subsections 7a7 and 7b7 of section #caaa4 7e7 ,special rules 7#a7 ,aggregation rule ,all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb1 or subsection 7m7 or 7o7 of section #dad1 shall be treated as one employer for purposes of this section4 7#b7 ,governmental entities ,no credit shall be allowed under this section to the ,government of the ,united ,states1 the government of any ,state or political subdivision thereof1 or to any agency or instrumentality of any of the foregoing4 ,the preceding sentence shall not apply to any organization described in section #eja7;c77#a7 and exempt from tax under section #eja7;a74 4 7b7 ,clerical amendment ,the table of sections for subchapter ,d of chapter #ba of such ,code is amended by adding at the end the following new item3 ,sec4 #cace4 ,electronic filing credit4 4 7c7 ,effective date ,the amendments made by this section shall apply to calendar quarters beginning after the date of the enactment of this ,act4 #e4 ,user fee for paper filing of employment taxes 7a7 ,in general ,chapter #be of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #ceac4 ,user fees 7a7 ,in general ,the ,secretary shall impose a user fee of #bej on each submission other than by electronic means of any quarterly or annual return required with respect to the collection of the tax imposed by chapter #ba or #bc;,a4 7b7 ,special rules ,for purpose of this section-- 7#a7 ,exception ,the ,secretary shall establish procedures for granting exceptions to the fee imposed by subsection 7a7 where electronic filing is not feasible1 including for under any of the following circumstances3 7,a7 ,any employer not required to make a quarterly return of the taxes imposed by subtitle ,c4 7,b7 ,first and second-time submissions filed other than by electronic means shall have the user fee waived1 with a written notification sent to the employer outlining the electronic submission requirement4 7,c7 ,employers who do not have ready access to broadband or convenient online services due to rural or other geographic barriers4 7,d7 ,certain emergency situations where electronic filing and payment would cause undue hardship4 7,e7 ,recent victims of identity theft or cybercrimes where submissions other than by electronic means might be necessary or desirable4 7,f7 ,such other circumstances as may be provided by the ,secretary in regulations or other guidance4 ,any person qualifying for an exception under this section or other applicable law shall be provided alternative submission options such as a paper filing4 7#b7 ,certain bulk filers ,in the case of a third party provider1 including a payroll service provider1 who for the #a-year period preceding the filing of any return to which subsection 7a7 applies filed electronically at least #ii percent of all returns described in subsection 7a7 that were made by the provider during such period1 no user fee shall be imposed with respect to such return under subsection 7a74 4 7b7 ,clerical amendment ,the table of sections for chapter #be of such ,code is amended by adding at the end the following new item3 ,sec4 #cace4 ,user fees4 4 7c7 ,effective date ,the amendments made by this section shall apply to returns required to be made for periods ending later than #b years after the date of the enactment of this ,act4