,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #fdeh  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,decemb] #d1 #bjbe,ms4
 ,malliotakis 7= h]self1 ,mr4 ,morelle1 
& ,mr4 ,suozzi7 introduc$ ! foll[+ bill2
 :i* 0 ref]r$ to ! ,committee on ,ways &
 ,means  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to improve !      
electronic fil+ process = employm5t     
taxes4  #a4 ,%ort title ,?is ,act may be
 cit$ z ! ,electronic ,fil+ ,improvem5t 
& ,logi/ical ,effici5cy ,act ( #bjbe4   
#b4 ,s5se ( ,congress ,x is ! s5se (    
,congress t-- 7#a7 bus9esses & _!       
?ird-p>ty repres5tatives %\ld be able to
 file all employm5t tax =ms & s*$ules1  
includ+ am5d$ returns1 electronically2  
7#b7 ! curr5t preval5ce & reliance on   
pap] by bo? ! ,int]nal ,rev5ue ,s]vice &
 private sector bus9esses = qu>t]ly &   
annual employm5t tax return fil+s is n  
su/a9able & mu/ be address$ imm$iately2 
7#c7 ! ob/acles to electronic fil+ are  
bo? /ructural & behavioral2 &  7#d7 !   
,int]nal ,rev5ue ,s]vice mu/ /reaml9e ! 

process = fil+ employm5t returns        
electronically1 mak+ x z easy & effici5t
 z possible1 :ile ! int]nal rev5ue laws 
mu/ inc5tivize ! use ( electronic fil+  
to help rapidly ov]come long/&+ taxpay] 
behaviors4  #c4 ,electronic fil+ =      
employm5t tax returns ,n lat] ?an #a ye>
 aft] ! date ( ! enactm5t ( ?is ,act1 ! 
,int]nal ,rev5ue ,s]vice %all-- 7#a7    
make available to employ]s              
fully-automat$ electronic process =     
satisfy+ all fil+ & paym5t requirem5ts  
7includ+ am5d$ returns7 = taxes impos$  
"u subtitle ,c ( ! ,int]nal ,rev5ue     
,code1  7#b7 fir/ focus on mak+         
available pursuant to p>agraph 7#a7 !   
adju/$ employ]'s qu>t]ly ,f$]al tax     
return or claim = refund 7,=m #ida-,x71 
&  7#c7 make all necess>y te*nical &    
bus9ess *anges to ! electronic fil+     
process to ensure t ! process is fully  
automat$ on ! front- & back-end & t     
electronic fil+ is ! mo/ conv5i5t &     
effici5t means ( meet+ su* fil+ & paym5t
 requirem5ts4  #d4 ,electronic fil+ tax 

cr$it = employ]s  7a7 ,9 g5]al ,sub*apt]
 ,d ( *apt] #ba ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new section3  #cace4           
,electronic fil+ cr$it = employ]s  7a7  
,9 g5]al ,9 ! case ( any employ] requir$
 to make a qu>t]ly return ( ! taxes     
impos$ by subtitle ,c1 !re %all be all[$
 z a cr$it aga9/ applicable employm5t   
taxes ) respect to su* employ] an am\nt 
equal to-- 7#a7 #a1jjj = ! cal5d> qu>t] 
= :i* ! return & paym5t ( su* taxes are 
= ! fir/ "t all made electronically1 &  
7#b7 9 ! ye> foll[+ ! ye> 9 :i* a cr$it 
is fir/ det]m9$ = a cal5d> qu>t] "u     
p>agraph 7#a71 #a1jjj = #a su* cal5d>   
qu>t] elect$ by ! employ] 9 su* ye> =   
:i* ! return & paym5t ( su* taxes are   
all made electronically4  7b7 ,cr$it    
limit$ to employm5t taxes2 c>ry =w>d    
7#a7 ,limit ,! cr$it all[$ by subsection
 7a7 ) respect to any cal5d> qu>t] %all 
n exce$ ! applicable employm5t taxes =  
su* cal5d> qu>t] on ! wages paid )      
respect to ! employm5t ( all employees (

 ! employ]4  7#b7 ,c>ry=w>d ,if ! am\nt 
( ! cr$it "u subsection 7a7 exce$s !    
limitation ( p>agraph 7#a7 = any cal5d> 
qu>t]1 su* excess %all be treat$ z a    
cr$it all[$ "u subsection 7a7 aga9/ !   
applicable employm5t taxes = ! foll[+   
cal5d> qu>t]4  7c7 ,def9ition & special 
rules  7#a7 ,recapture  7,a7 ,9 g5]al ,9
 ! case ( an employ] all[$ a cr$it "u   
subsection 7a7 aga9/ an applicable      
employm5t tax = any cal5d> qu>t]1 if !  
employ] = any subsequ5t cal5d> qu>t]    
fails to make ! return & paym5t (       
applicable employm5t taxes              
electronically1 su* tax %all = su*      
subsequ5t cal5d> qu>t] be increas$ by ! 
am\nt ( su* cr$it s all[$4  7,b7 ,no    
cr$it foll[+ recapture ,9 ! case ( an   
employ] ) respect to :i* subp>agraph    
7,a7 applies = any qu>t]1 no cr$it %all 
be all[$ "u subsection 7a7 = any        
subsequ5t qu>t]4  7#b7 ,exception =     
extraord9>y circum/ances  7,a7          
,extraord9>y circum/ances ,a taxpay]    
%all n be treat$ z fail+ to make !      

return & paym5t ( applicable employm5t  
taxes electronically = purposes (       
p>agraph 7#a7 "u su* circum/ances z !   
,secret>y may by exception provide1     
includ+ an employ]'s lack ( ready access
 to broadb& or conv5i5t onl9e s]vices   
due to rural or o!r geographic b>ri]s or
 em]g5cy situations :]e electronic fil+ 
& paym5t w\ld cause undue h>d%ip4  7,b7 
,deem$ compliance = c]ta9 bulk fil]s ,= 
purposes ( ?is section1 9 ! case ( a    
?ird p>ty provid]1 includ+ a payroll    
s]vice provid]1 :o = ! #a-ye> p]iod     
prec$+ ! fil+ ( any return to :i*       
p>agraph 7#a77;,a7 w\ld apply 7)\t reg>d
 to ?is subp>agraph7 fil$ electronically
 at lea/ #ii p]c5t ( all returns        
describ$ 9 subsection 7a7 t 7 made by ! 
provid] dur+ su* p]iod1 no cr$it %all be
 recaptur$ "u p>agraph 7#a77;,a7 by     
reason ( su* return4  7d7 ,applicable   
employm5t taxes ,= purposes ( ?is       
section1 ! t]m applicable employm5t     
taxes means ! foll[+3 7#a7 ,! taxes     
impos$ by subsections 7a7 & 7b7 (       

section #caaa4  7#b7 ,s mu* ( ! taxes   
impos$ by section #cbba z are           
attributable to ! rates 9 effect "u     
subsections 7a7 & 7b7 ( section #caaa4  
7e7 ,special rules  7#a7 ,aggregation   
rule ,all p]sons treat$ z a s+le employ]
 "u subsection 7a7 or 7b7 ( section #eb1
 or subsection 7m7 or 7o7 ( section     
#dad1 %all be treat$ z "o employ] =     
purposes ( ?is section4  7#b7           
,gov]nm5tal entities ,no cr$it %all be  
all[$ "u ?is section to ! ,gov]nm5t ( ! 
,unit$ ,/ates1 ! gov]nm5t ( any ,/ate or
 political subdivision !re(1 or to any  
ag5cy or in/rum5tality ( any ( ! =ego+4 
,! prec$+ s5t5ce %all n apply to any    
organization describ$ 9 section         
#eja7;c77#a7 & exempt f tax "u section  
#eja7;a74  4  7b7 ,cl]ical am5dm5t ,!   
table ( sections = sub*apt] ,d ( *apt]  
#ba ( su* ,code is am5d$ by add+ at !   
end ! foll[+ new item3  ,sec4 #cace4    
,electronic fil+ cr$it4  4  7c7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to cal5d> qu>t]s     

beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #e4 ,us] fee = pap] fil+ (       
employm5t taxes  7a7 ,9 g5]al ,*apt] #be
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by add+ at ! end ! foll[+ new     
section3  #ceac4 ,us] fees  7a7 ,9 g5]al
 ,! ,secret>y %all impose a us] fee (   
#bej on ea* submission o!r ?an by       
electronic means ( any qu>t]ly or annual
 return requir$ ) respect to !          
collection ( ! tax impos$ by *apt] #ba  
or #bc;,a4  7b7 ,special rules ,=       
purpose ( ?is section-- 7#a7 ,exception 
,! ,secret>y %all e/abli% proc$ures =   
grant+ exceptions to ! fee impos$ by    
subsection 7a7 :]e electronic fil+ is n 
feasible1 includ+ = "u any ( ! foll[+   
circum/ances3 7,a7 ,any employ] n       
requir$ to make a qu>t]ly return ( !    
taxes impos$ by subtitle ,c4  7,b7 ,fir/
 & second-"t submissions fil$ o!r ?an by
 electronic means %all h ! us] fee      
waiv$1 ) a writt5 notification s5t to ! 
employ] outl9+ ! electronic submission  
requirem5t4  7,c7 ,employ]s :o d n h    

ready access to broadb& or conv5i5t     
onl9e s]vices due to rural or o!r       
geographic b>ri]s4  7,d7 ,c]ta9 em]g5cy 
situations :]e electronic fil+ & paym5t 
w\ld cause undue h>d%ip4  7,e7 ,rec5t   
victims ( id5tity !ft or cyb]crimes :]e 
submissions o!r ?an by electronic means 
might be necess>y or desirable4  7,f7   
,su* o!r circum/ances z may be provid$  
by ! ,secret>y 9 regulations or o!r     
guidance4  ,any p]son qualify+ = an     
exception "u ?is section or o!r         
applicable law %all be provid$          
alt]native submission options su* z a   
pap] fil+4  7#b7 ,c]ta9 bulk fil]s ,9 ! 
case ( a ?ird p>ty provid]1 includ+ a   
payroll s]vice provid]1 :o = ! #a-ye>   
p]iod prec$+ ! fil+ ( any return to :i* 
subsection 7a7 applies fil$             
electronically at lea/ #ii p]c5t ( all  
returns describ$ 9 subsection 7a7 t 7   
made by ! provid] dur+ su* p]iod1 no us]
 fee %all be impos$ ) respect to su*    
return "u subsection 7a74  4  7b7       
,cl]ical am5dm5t ,! table ( sections =  

*apt] #be ( su* ,code is am5d$ by add+  
at ! end ! foll[+ new item3  ,sec4      
#cace4 ,us] fees4  4  7c7 ,effective    
date ,! am5dm5ts made by ?is section    
%all apply to returns requir$ to be made
 = p]iods end+ lat] ?an #b ye>s aft] !  
date ( ! enactm5t ( ?is ,act4