Internal Revenue Bulletin 2021-32 (PDF rendition): IRS Notices

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

Bulletin No. 2021–32
August 9, 2021
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
ADMINISTRATIVE
REG-102951-16, page 272.
The proposed regulations would amend the rules for fil-
ing certain returns and statements electronically to reflect
changes made by the Taxpayer First Act of 2019 and to pro-
mote electronic filing. The NPRM also withdraws proposed
regulations published in the Federal Register on May 31,
2018, amending the rules for determining whether informa-
tion returns must be filed electronically.
INCOME TAX
Notice 2021-47, page 269.
The notice announces the inflation adjustment factor and
phase-out amount for the enhanced oil recovery credit for
taxable years beginning in the 2021 calendar year. The for-
mat of the notice is identical to the format of previously
published notices on this issue. The notice concludes that
because the reference price for the 2020 calendar year
($37.07) does not exceed $28 multiplied by the inflation ad-
justment factor for the 2020 calendar year ($28 multiplied
by 1.7849 = $49.9772), the enhanced oil recovery credit
for qualified costs paid or incurred in 2021 is determined
without regard to the phase-out for crude oil price increas-
es. The notice contains the previously published figures for
taxable years beginning in the 1991 through 2020 calendar
years. This year, calendar year 2021, is similar to 2016
and 2017 where the enhanced oil recovery credit is deter-
mined without regard to the phase-out for crude oil price
increases.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
August 9, 2021 Bulletin No. 2021–32

Part III
2021 Section 43 Inflation
Adjustment
Notice 2021-47
Section 43(a) provides that for purpos-
es of section 38, the enhanced oil recovery
credit for any taxable year is an amount
equal to 15 percent of the taxpayer’s qual-
ified enhanced oil recovery costs for such
taxable year.
Section 43(b)(1) provides that the
amount of the credit determined under
subsection (a) for any taxable year shall
be reduced by an amount which bears the
same ratio to the amount of such credit
(determined without regard to this para-
graph) as — (A) the amount by which
the reference price for the calendar year
preceding the calendar year in which the
taxable year begins exceeds $28, bears to
(B) $6.
Section 43(b)(3)(B) of the Internal
Revenue Code requires the Secretary to
publish an inflation adjustment factor. The
enhanced oil recovery credit under § 43
for any taxable year is reduced if the “ref-
erence price,” determined under § 45K(d)
(2)(C), for the calendar year preceding the
calendar year in which the taxable year be-
gins is greater than $28 multiplied by the
inflation adjustment factor for that year.
The term “inflation adjustment factor”
means, with respect to any calendar year,
a fraction the numerator of which is the
GNP implicit price deflator for the preced-
ing calendar year and the denominator of
which is the GNP implicit price deflator
for 1990.
Because the reference price for the
2020 calendar year ($37.07) does not ex-
ceed $28 multiplied by the inflation ad-
justment factor for the 2020 calendar year
($28 multiplied by 1.7849 = $49.9772),
the enhanced oil recovery credit for quali-
fied costs paid or incurred in 2021 is deter-
mined without regard to the phase-out for
crude oil price increases.
Table 1 contains the GNP implicit price
deflator used for the 2021 calendar year,
as well as the previously published GNP
implicit price deflators used for the 1991
through 2020 calendar years.
Bulletin No. 2021–32 269 August 9, 2021

Notice 2021-47 TABLE 1
GNP IMPLICIT PRICE DEFLATORS
Calendar YearGNP Implicit Price Deflator
1990112.9 (used for 1991)
1991117.0 (used for 1992)
1992120.9 (used for 1993)
1993124.1 (used for 1994)
1994126.0 (used for 1995)*
1995107.5 (used for 1996)
1996109.7 (used for 1997)**
1997112.35 (used for 1998)
1998112.64 (used for 1999)***
1999104.59 (used for 2000)
2000106.89 (used for 2001)
2001109.31 (used for 2002)
2002110.63 (used for 2003)
2003105.67 (used for 2004)****
2004108.23 (used for 2005)
2005112.129 (used for 2006)
2006116.036 (used for 2007)
2007119.656 (used for 2008)
2008122.407 (used for 2009)
2009109.764 (used for 2010)*****
2010110.654 (used for 2011)
2011113.347 (used for 2012)******
2012115.387 (used for 2013)
2013106.710 (used for 2014)*******
2014108.407 (used for 2015)********
2015109.868 (used for 2016)
2016111.528 (used for 2017)
2017113.500 (used for 2018)
2018110.308 (used for 2019)*********
2019112.257 (used for 2020)
2020113.586 (used for 2021)
* Beginning in 1995, the GNP implicit price deflator was rebased relative to 1992. The 1990 GNP implicit price deflator used to compute the 1996 § 43 inflation
adjustment factor is 93.6.
** Beginning in 1997, two digits follow the decimal point in the GNP implicit price deflator. The 1990 GNP price deflator used to compute the 1998 § 43 inflation
adjustment factor is 93.63.
*** Beginning in 1999, the GNP implicit price deflator was rebased relative to 1996. The 1990 GNP implicit price deflator used to compute the 2000 § 43 inflation
adjustment factor is 86.53.
**** Beginning in 2003, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the 2004 § 43 inflation adjustment
factor is 81.589.
***** Beginning in 2009, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the 2010 § 43 inflation adjustment
factor is 72.199.
****** Beginning in 2011, the 1990 GNP implicit price deflator used to compute the 2012 § 43 inflation adjustment factor is 72.260.
******* Beginning in 2013, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the 2014 § 43 inflation adjustment
factor is 66.803.
******** Beginning in 2014, the 1990 GNP implicit price deflator used to compute the 2015 § 43 inflation adjustment factor is 66.732.
********* Beginning in 2018, the 1990 GNP implicit price deflator used to compute the 2019 § 43 inflation adjustment factor is 63.637.
August 9, 2021 270 Bulletin No. 2021–32

Bulletin No. 2021–32 271 August 9, 2021
Table 2 contains the inflation adjust-
ment factor and the phase-out amount
for taxable years beginning in the 2021
calendar year as well as the previously
published inflation adjustment factors
and phase-out amounts for taxable years
beginning in the 1991 through 2020 cal-
endar years.
Notice 2021-47 TABLE 2
INFLATION ADJUSTMENT FACTORS AND
PHASE-OUT AMOUNTS
Calendar YearInflation Adjustment FactorPhase-out Amount
19911.00000
19921.03630
19931.07080
19941.09920
19951.11600
19961.14850
19971.17200
19981.19990
19991.20300
20001.20870
20011.23530
20021.26330
20031.27850
20041.29520
20051.32660
20061.3743100 percent
20071.4222100 percent
20081.4666100 percent
20091.5003100 percent
20101.5203100 percent
20111.5326100 percent
20121.5686100 percent
20131.5968100 percent
20141.5974100 percent
20151.6245100 percent
20161.64640
20171.67130
20181.70081.069 percent
20191.7334100 percent
20201.7640100 percent
20211.7849 0
DRAFTING INFORMATION
The principal author of this notice is
Martha M. Garcia of the Office of Associ-
ate Chief Counsel (Passthroughs and Spe-
cial Industries). For further information
regarding this notice, contact Ms. Garcia
at (202) 317-6853 (not a toll-free number).

August 9, 2021 272 Bulletin No. 2021–32
Part IV
Notice of Proposed
Rulemaking
Electronic-Filing
Requirements for
Specified Returns and
Other Documents
REG-102951-16
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Withdrawal of notice of pro-
posed rulemaking; notice of proposed
rulemaking.
SUMMARY: This document contains pro-
posed regulations amending the rules for
filing electronically and affects persons
required to file partnership returns, cor-
porate income tax returns, unrelated busi-
ness income tax returns, withholding tax
returns, and certain information returns,
registration statements, disclosure state-
ments, notifications, actuarial reports, and
certain excise tax returns. The proposed
amendments reflect changes made by the
Taxpayer First Act of 2019 (TFA) and are
consistent with the TFA’s emphasis on in-
creasing electronic filing. This document
also withdraws proposed regulations pub-
lished in the Federal Register on May 31,
2018, amending the rules for determining
whether information returns must be filed
electronically.
DATES: Written or electronic comments
must be received by September 21, 2021.
The public hearing is being held by tele-
conference on September 22, 2021 at 10
a.m. EST. Requests to speak and outlines
of topics to be discussed at the public
hearing must be received by September
21, 2021. If no outlines are received by
September 21, 2021, the public hearing
will be cancelled. Requests to attend the
public hearing must be received by 5:00
p.m. EST on September 20, 2021. The
telephonic hearing will be made accessi-
ble to people with disabilities. Requests
for special assistance during the telephon-
ic hearing must be received by September
17, 2021.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically. Submit electronic submis-
sions via the Federal eRulemaking Portal
at www.regulations.gov (indicate IRS and
REG–102951–16) by following the online
instructions for submitting comments.
Once submitted to the Federal eRulemak-
ing Portal, comments cannot be edited or
withdrawn. The Department of the Trea-
sury (Treasury Department) and the IRS
will publish for public availability any
comments submitted to its public docket.
Send paper submissions to: CC:PA:LP-
D:PR (REG–102951–16), room 5203,
Internal Revenue Service, P.O. Box 7604,
Ben Franklin Station, Washington, DC
20044.
FOR FURTHER INFORMATION CON-
TACT: Concerning the proposed regula-
tions, call Casey R. Conrad of the Office
of the Associate Chief Counsel (Procedure
and Administration), (202) 317-6844;
concerning submission of comments or
requests for a public hearing, call Regi-
na Johnson, (202) 317-5177 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains proposed
amendments to the Regulations on Income
Taxes (26 CFR part 1) under sections
1461 and 1474 of the Internal Revenue
Code (Code), which provide that persons
required to deduct and withhold tax are
liable for such tax, and section 6050I of
the Code, which requires persons to report
information about financial transactions to
the IRS; to the Regulations on Pension Ex-
cise Taxes (26 CFR part 54) under section
6011 of the Code, which requires persons
to report information for certain excise
taxes related to employee benefit plans; to
the Regulations on Procedure and Admin-
istration (26 CFR part 301) under sections
1474, 6011, 6012, 6033, 6057, 6058, and
6059 of the Code for determining whether
returns must be filed using magnetic me-
dia; and to the Regulations on Foundation
and Similar Excise Taxes (26 CFR part
53) under section 6011 of the Code to re-
move the option—available to a person
required to report certain excise taxes on
Form 4720, Return of Certain Excise Tax-
es Under Chapters 41 and 42 of the Inter-
nal Revenue Code—to designate a Form
4720 filed by a private foundation or trust
as that person’s return if the foundation is
reporting the same transaction. This docu-
ment also withdraws proposed regulations
under section 6011 that were published in
the Federal Register on May 31, 2018
(May 2018 proposed regulations), amend-
ing the rules for determining whether
information returns must be filed using
magnetic media.
Section 6011(e) was added to the Code
by section 319 of the Tax Equity and Fis-
cal Responsibility Act of 1982, Public
Law 97-248, 96 Stat. 610, and required
the Secretary of the Treasury or her del-
egate (Secretary) to prescribe regulations
providing standards for determining
which returns were required to be filed on
magnetic media (hereinafter references
to filing “in electronic form” will be used
in place of filing “on magnetic media”).
A year later, the statute was amended by
section 109 of the Interest and Dividend
Tax Compliance Act of 1983, Public Law
98-67, 97 Stat. 383, to require informa-
tion returns under sections 6042(a) (div-
idends and corporate earnings and prof-
its), 6044(a) (patronage dividends), and
6049(a) (interest), with respect to more
than 50 payees for any calendar year, to be
filed electronically. The amendment also
added a waiver provision from electroni-
cally filing to any person who established
undue hardship.
On March 25, 1986, the Secretary first
published guidance under section 6011(e)
with respect to the electronic filing re-
quirement as §301.6011-2 (TD 8081),
which specified Forms 1042-S, 1098,
1099 series, 5498, 6248, 8027, W-2G,
W-2, W-2P as the information returns
covered by the regulation that had to be
filed electronically unless the person was
granted a waiver or was a low-volume
filer. The term “low-volume filers” was

Bulletin No. 2021–32 273 August 9, 2021
defined as persons not required to file,
for any calendar year beginning on or af-
ter January 1, 1987, 250 or more of the
specified returns (other than Forms 1099-
DIV, Dividends and Distributions; 1099-
PATR, Taxable Distributions Received
from Cooperatives; 1099-INT, Interest
Income; or 1099-OID, Original Issue
Discount). For those four Forms 1099,
the regulation provided a special rule that
reduced the 250-return threshold to 50
and required that the four forms be aggre-
gated for purposes of determining wheth-
er a person met the 50-return threshold.
The regulation also provided that the
Commissioner of Internal Revenue or his
delegate (Commissioner) could prescribe
by revenue procedure additional forms to
be covered by the regulation.
Section 6011(e) was again amend-
ed in 1989 by section 7713, Title VII, of
the Revenue Reconciliation Act of 1989
(1989 Act), Public Law 101-239, 103
Stat. 2394, to prohibit the Secretary from
requiring any person to file returns elec-
tronically unless that person was required
to file at least 250 returns during the cal-
endar year. The 1989 Act also required the
Secretary to consider the taxpayer’s abil-
ity to comply at reasonable costs with the
regulation’s requirements.
On June 30, 1998, the Secretary pro-
mulgated amending regulations under
section 6011(e), §301.6011-2 (TD 8772),
that removed the special rules related to
the four Forms 1099 and clarified that the
250-return threshold applied separate-
ly to each information return covered by
§301.6011-2. The regulation also added
Forms 499R-2/W-2PR, W-2VI, W-2GU,
and W-2AS as information returns cov-
ered by the regulation and removed
Form 6248.
On August 5, 1997, the President
signed into law the Taxpayer Relief Act of
1997, Public Law 105–34. Section 1224
of that Act amended 6011(e)(2) by adding
a sentence that required the Secretary to
promulgate regulations to require partner-
ships with over 100 partners to file returns
electronically. On November 12, 1999, the
Secretary promulgated regulations under
section 6011(e) relating to this special rule
for partnerships with more than 100 part-
ners, §301.6011-3 (TD 8843), requiring
partnerships with more than 100 partners
to file partnership returns and all informa-
tion required by the applicable forms and
schedules electronically.
On April 29, 2002, the Secretary
promulgated regulations under section
6011(e) (TD 8992) to add Form 1098-E as
an information return covered by the regu-
lation; on February 7, 2003, the Secretary
promulgated regulations under section
6011(e) (TD 9029) to add Form 1098-T
as an information return covered by the
regulation.
On November 13, 2007, the Secre-
tary promulgated regulations relating
to the requirements for filing corporate
income tax returns and returns of orga-
nizations required to file returns under
section 6033 electronically under sec-
tion 6011(e), §301.6011-5, §301.6033-4,
and §301.6037-2 (TD 9363). The regula-
tions specify that all returns required to be
filed during the calendar year, including
income tax returns, employment tax re-
turns, excise tax returns, and information
returns, are counted in determining wheth-
er a corporation or organization meets the
250-return threshold. Sections 301.6011-
5 and 301.6037-2 apply to large corpora-
tions and S corporations, respectively, if
the corporation is required to file at least
250 returns during the calendar year and
the corporation reports total assets at the
end of the corporation’s taxable year that
equal or exceed $10 million on Schedule
L of their Form 1120 ($10 million rule).
Section 301.6033-4 applies to organiza-
tions required to file Form 990, Return of
Organization Exempt From Income Tax,
that have total assets of $10 million or
more as of the end of the taxable year, and
that are required to file at least 250 returns
during the calendar year; it also applies to
any organization (regardless of total as-
sets) required to file Form 990-PF, Return
of Private Foundation or Section 4947(a)
(1) Trust Treated as Private Foundation,
if the organization is required to file at
least 250 returns during the calendar year.
Section 6011(e)(4) was added to the
Code in 2010 by section 522, Title V, of
the Hiring Incentives to Restore Employ-
ment (HIRE) Act, Public Law 111-147,
124 Stat. 71, to authorize the Secretary
to require financial institutions that file
returns with respect to withholding on
foreign transfers to file those returns elec-
tronically regardless of the number. On
January 28, 2013, the Secretary promul-
gated regulations under section 1474(f),
§301.1474-1 (TD 9610), to require finan-
cial institutions defined in section 1471(d)
(5) to electronically file Form 1042-S,
Foreign Persons’ U.S. Source Income
Subject to Withholding, regardless of the
number of returns filed for the calendar
year, but did not include in those regula-
tions a requirement to electronically file
Form 1042, Annual Withholding Tax Re-
turn for U.S. Source Income of Foreign
Persons.
On March 10, 2014, the Secretary
promulgated regulations under sec-
tion 6011(e), §301.6011-2 (TD 9660), to
add the Forms 1094 series and 1095 series
as information returns covered by the reg-
ulation. And on December 19, 2016, the
Secretary promulgated regulations under
section 6011(e), §301.6011-2 (TD 9804),
to remove the Form 1095 series and add
Form 1095-B and Form 1095-C as infor-
mation returns covered by the regulation.
On March 23, 2018, the President
signed into law the Tax Technical Cor-
rections Act of 2018 (TTCA), Public
Law 115-141. Section 301, div. U, title
III, of the TTCA added a new paragraph
(5), Special rule for partnerships, to sec-
tion 6011(e). Section 6011(e)(5)(A), Part-
nerships permitted to be required to file
on magnetic media, authorized the Secre-
tary to lower the electronic-filing thresh-
old to 200 returns and statements for all
partnerships filing returns and statements
relating to calendar year 2018, reducing
that number by 50 each year until 2023,
when partnerships filing more than 20 re-
turns and statements relating to 2022 or
any subsequent calendar year could be
required to file electronically. The TTCA
also moved the rule authorizing the Secre-
tary to require partnerships with more than
100 partners to file their returns electroni-
cally from section 6011(e)(2) to new sec-
tion 6011(e)(5)(B), Partnerships required
to file on magnetic media. The Secretary
did not promulgate regulations under sec-
tion 6011(e) relating to the lower electron-
ic-filing thresholds for partnerships.
On May 31, 2018, the Secretary pro-
posed regulations under section 6011(e)
(83 FR 24948) amending §301.6011-2.
The proposed regulations would have re-
quired that all information returns covered
under that regulation, regardless of type,
be included in determining whether the

August 9, 2021 274 Bulletin No. 2021–32
returns a person must file meet the 250-re-
turn threshold and the person must file the
information returns electronically. The
May 2018 proposed regulations also pro-
vided that corrected information returns
would be required to be filed electronical-
ly if the corresponding original return was
required to be filed electronically.
On July 1, 2019, the President signed
into law the Taxpayer First Act of 2019
(TFA), Public Law 116-25. Section 2301
of the TFA amended section 6011(e) by
adding new paragraph 5 that authorizes
the Secretary to prescribe regulations that
decrease, in accordance with the TFA,
the number of returns a taxpayer may file
without being required to file electronical-
ly. These amendments included changes
to the special rule for partnerships. Sec-
tion 2301 of the TFA moved the rule re-
quiring partnerships with more than 100
partners to file returns electronically from
section 6011(e)(5), titled “Partnerships re-
quired to file on magnetic media”, to new
section 6011(e)(6). Section 3101 of the
TFA amended section 6011 to require any
charitable or other organization required
to file an annual return that relates to any
tax imposed by section 511 on unrelated
business taxable income to file those re-
turns in electronic form. Section 3101 of
the TFA also amended section 6033 to
require any organization required to file
a return under section 6033 to file those
returns in electronic form.
On November 19, 2020, the Secre-
tary promulgated regulations under sec-
tion 529A of the Code, which amended
a regulation under section 6011(e) of the
Code, §301.6011-2 (TD 9923), to add the
Forms 5498-ESA, Coverdell ESA Con-
tribution Information, 5498-QA, ABLE
Account Contribution Information, and
5498-SA, HSA, Archer MSA, or Medicare
Advantage MSA Information, as informa-
tion returns covered by the regulation.
On December 20, 2019, the President
signed into law the Setting Every Com-
munity Up for Retirement Enhancement
Act of 2019 (SECURE Act), enacted as
part of the Further Consolidated Appro-
priations Act, 2020, Public Law 116-94,
div. O. Section 202 of the SECURE Act
allows a group of plans to file a single ag-
gregated annual return or report for plan
years beginning after December 31, 2021.
Section 202(d) of the SECURE Act clari-
fies the electronic-filing requirements for
these deferred compensation plans. Sec-
tion 202 of the SECURE Act also added
to section 6011 a second paragraph (e)
(6), although the headings of the two
paragraphs (e)(6) differ. The one moved
to paragraph (e)(6) by the TFA is titled
“Partnerships required to file on magnetic
media.” The one added by the SECURE
Act is titled “Application of numerical
limitation to returns related to deferred
compensation plans” and treats informa-
tion regarding each plan for which infor-
mation is provided on a return required to
be filed under section 6058 of the Code as
a separate return for purposes of determin-
ing the number of returns a taxpayer may
file without being required to file elec-
tronically. These proposed regulations do
not address amendments made by section
202(d) of the SECURE Act.
Explanation of Provisions
1. Scope of the Proposed Regulations for
Filing Returns Electronically
These proposed regulations would
impose electronic-filing requirements on
persons required to file certain returns as
authorized by the TFA by amending the
following regulations:
(1) §301.6011-2, Required use of elec-
tronic form, which prescribes stan-
dards for determining whether cer-
tain information returns must be
filed electronically;
(2) §1.6045-2, Furnishing statement
required with respect to certain sub-
stitute payments, which requires
persons to report certain substitute
payments;
(3) §1.6045-4, Information reporting on
real estate transactions with dates of
closing on or after January 1, 1991,
which requires persons to report on
real estate transactions;
(4) §1.6050I-0, Table of contents,
which lists the major captions that
appear in §§1.6050I-1 and 1.6050I-
2;
(5) §1.6050I-1, Returns relating to cash
in excess of $10,000 received in a
trade or business, which requires
persons to report information about
these financial transactions to the
IRS;
(6) §1.6050I-2, Returns relating to cash
in excess of $10,000 received as
bail by court clerks, which requires
persons to report information about
these financial transactions to the
IRS;
(7) §1.6050M-1, Information returns
relating to persons receiving con-
tracts from certain Federal execu-
tive agencies, which requires certain
Federal executive agencies to report
information with respect to each
contract entered into by that agency;
(8) §301.6721-1, Failure to file correct
information returns, which provides
the penalty for failure to file correct
information returns;
(9) §301.6011-3, Required use of elec-
tronic form for partnership returns,
which prescribes standards for de-
termining whether a partnership
must file its partnership return elec-
tronically;
(10) §301.6011-5, Required use of elec-
tronic form for corporate income tax
returns, which prescribes standards
for determining whether a corpora-
tion must file its corporate income
tax returns electronically;
(11) §1.6037-2, Required use of elec-
tronic form for income tax returns
of electing small business corpora-
tions, which prescribes standards
for determining whether an electing
small-business corporation (S cor-
poration) must file its S corporation
return electronically;
(12) §301.6037-2, Required use of elec-
tronic form for returns of electing
small business corporations, which
prescribes standards for determin-
ing whether an electing small-busi-
ness corporation (S corporation)
must file its S corporation return
electronically;
(13) §1.6033-4, Required filing in elec-
tronic form for returns by organi-
zations required to file returns un-
der section 6033, which prescribes
standards for filing returns required
to be filed electronically under
§301.6033-4;
(14) §301.6033-4, Required filing in
electronic form for returns by orga-
nizations required to file returns un-
der section 6033, which prescribes
standards for determining whether

Bulletin No. 2021–32 275 August 9, 2021
returns by organizations required to
file a return under section 6033 must
be filed electronically;
(15) §53.6011-1, General requirement
of return, statement or list, which
requires persons subject to cer-
tain enumerated excise taxes under
Chapter 42 of the Code to file a
Form 4720 to accompany payment
of those excise taxes;
(16) §301.6057-3, Required use of elec-
tronic form for filing requirements
relating to deferred vested retire-
ment benefit, which prescribes stan-
dards for determining whether a
registration statement required to be
filed under section 6057(a) or a no-
tification required to be filed under
section 6057(b) must be filed elec-
tronically;
(17) §301.6058-2, Required use of elec-
tronic form for filing requirements
relating to information required in
connection with certain plans of
deferred compensation, which pre-
scribes standards for determining
whether a return required to be filed
under section 6058 with respect to
an employee benefit plan must be
filed electronically; and
(18) §301.6059-2, Required use of elec-
tronic form for filing requirements
relating to periodic report of actu-
ary, which prescribes standards for
determining whether an actuarial
report required to be filed under
section 6059 with respect to an em-
ployee benefit plan must be filed
electronically.
The proposed regulations would also
create the following new regulations that
impose an electronic-filing requirement:
(1) §301.6011-10, Certain organizations,
including trusts, required to file unre-
lated business income tax returns in
electronic form, which requires cer-
tain organizations, including trusts, to
file their unrelated business income
tax returns electronically;
(2) §301.6011-11, Required use of elec-
tronic form for certain returns for
tax-advantaged bonds, which pre-
scribes standards for determining
whether a return for credit payments
to issuers of qualified bonds must be
filed electronically;
(3) §301.6011-12, Required use of elec-
tronic form for returns of certain ex-
cise taxes under chapters 41 and 42
of the Internal Revenue Code, which
prescribes standards for determining
whether an excise tax return on Form
4720 must be filed electronically;
(4) §301.6011-13, Required use of elec-
tronic form for split-interest trust re-
turns, which prescribes standards for
determining whether an information
return on Form 5227 must be filed
electronically;
(5) §301.6011-14, Required use of elec-
tronic form or other machine-read-
able form for material advisor dis-
closure statements, which prescribes
standards for determining whether a
material advisor disclosure statement
on Form 8918 must be filed electron-
ically or in other machine-readable
form;
(6) §301.6012-2, Required use of elec-
tronic form for income tax returns of
certain political organizations, which
prescribes standards for determin-
ing whether an income tax return on
Form 1120-POL must be filed elec-
tronically;
(7) §54.6011-3, Required use of electron-
ic form for the filing requirements
for the return for certain excise tax-
es related to employee benefit plans,
which prescribes standards for deter-
mining whether an income tax return
on Form 5330, Return of Excise Tax-
es Related to Employee Benefit Plans,
must be filed electronically; and
(8) §301.6011-15, Required use of elec-
tronic form for withholding tax re-
turns, which prescribes standards for
determining whether an income tax
return filed by a withholding agent on
Form 1042 must be filed electronical-
ly.
In addition, the proposed regulations
would amend the following regulations
regarding the filing requirements of with-
holding agents:
(1) §1.1461-1, Payment and returns of
tax withheld, which prescribes re-
quirements for withholding agents
to file returns with respect to U.S.
source income of foreign persons;
(2) §1.1471-0, Outline of regulation pro-
visions for sections 1471 through
1474, which lists the major captions
that appear in §§1.1471-1 through
1.1474-7 and §301.1474-1;
(3) §1.1474-1, Liability for withheld
tax and withholding agent reporting,
which provides rules for withholding
agents making payments under chap-
ters 3 or 4 of the Code; and
(4) §301.1474-1, Required use of elec-
tronic form for financial institutions
filing Form 1042-S or Form 8966,
which provides rules for withholding
agents making payments under chap-
ter 4 of the Code.
The regulations proposed in this doc-
ument include reordering and renumber-
ing of paragraphs when necessary for
clarification and logic. In addition, cross
references have been updated, and typo-
graphical, grammatical, and punctuation
corrections have been made.
As many of these regulations imposing
electronic-filing requirements also pro-
vide a waiver from electronically filing to
any person who establishes undue hard-
ship, the Treasury Department and the
IRS request comments on how the hard-
ship waiver procedures should be admin-
istered, including suggestions for revising
the procedures for requesting, and criteria
for granting, a hardship waiver.
2. Proposed §301.6011-2, Rules for
Filing Certain Information Returns
Electronically
These proposed regulations would
amend §301.6011-2 as discussed in detail
in the following sections 2.A though 2.G.
A. Additional information returns
required to be filed electronically
i. Forms 1098-C and 1098-Q
Section 301.6011-2(b)(1) provides a
list of information returns required to be
filed electronically in accordance with
§301.6011-2. Among those returns are
three in the Form 1098 series: Form 1098,
Mortgage Interest Statement; Form 1098-
E, Student Loan Interest Statement; and
Form 1098-T, Tuition Statement, added
to §301.6011-2(b)(1) by, respectively,
TD 8081 (March 25, 1986), TD 8992
(April 29, 2002), and TD 9029 (February
7, 2003). After those three forms were
added to §301.6011-2(b)(1), the IRS cre-

August 9, 2021 276 Bulletin No. 2021–32
ated additional returns in the Form 1098
series: Form 1098-C, Contributions of
Motor Vehicles, Boats, and Airplanes;
and Form 1098-Q, Qualifying Longevity
Annuity Contract Information. These two
additional 1098 series forms, as well as
the three currently listed in §301.6011-
2(b), are all filed and furnished by larger
organizations and institutions that gener-
ally electronically file returns even when
not required to do so by §301.6011-2.
Based on the size and sophistication of
the entities that file these forms and the
accessibility and availability of electron-
ic filing, the Treasury Department and
the IRS have determined that filers of
Forms 1098-C and 1098-Q are unlikely
to incur unreasonable costs to electroni-
cally file these returns. Thus, the proposed
regulations would amend §301.6011-2(b)
(1) to add Forms 1098-C and 1098-Q to
the list of information returns covered by
§301.6011-2(b).
ii. Forms 3921 and 3922
The proposed regulations would also
amend §301.6011-2(b)(1) to add the
Form 3921, Exercise of an Incentive
Stock Option Under Section 422(b), and
Form 3922, Transfer of Stock Acquired
Through an Employee Stock Purchase
Plan Under Section 423(c). These forms
are filed and furnished by sophisticated
taxpayers that generally electronically file
returns even when not required to do so by
§301.6011 2. Based on the sophistication
of these filers and the accessibility and
availability of electronic filing, the Trea-
sury Department and the IRS have deter-
mined that filers of Forms 3921 and 3922
are unlikely to incur unreasonable costs to
electronically file these returns.
iii. Form 1097-BTC
The proposed regulations would also
amend §301.6011-2(b)(1) to add the
Form 1097-BTC, Bond Tax Credit. This
form is filed and furnished by bond issuers
with respect to certain tax credit bonds.
For the reasons discussed in this pream-
ble, the Treasury Department and the IRS
have determined that filers of Form 1097-
BTC should not incur any unreasonable
costs to electronically file this return. See
section 2.D., Aggregation of returns to
determine whether the electronic-filing
threshold is met. Proposed §301.6011-2
would allow for a waiver of the electronic
filing requirements for Form 1097-BTC if
hardship is shown in a request for waiver
made in accordance with the regulation.
B. Form 8300 required to be filed
electronically
Form 8300, Report of Cash Payments
Over $10,000 Received in a Trade or Busi-
ness, is a dual-purpose form, designed to
meet both the section 6050I reporting re-
quirement and, since January 1, 2002, a
similar Bank Secrecy Act (BSA) reporting
requirement found in 31 U.S.C. 5331 and
31 CFR 1010.330. Generally, any person
in a trade or business who receives more
than $10,000 in cash in a single transac-
tion or related transactions must file Form
8300. The IRS uses the information on
the Form 8300 for civil and criminal tax
administration and compliance. The Fi-
nancial Crimes Enforcement Network
(FinCEN) relies on up-to-date Form 8300
filings for law enforcement, reporting,
and statistical purposes. The instructions
on Form 8300 state that filers can file the
form either on paper with the IRS or elec-
tronically through FinCEN’s BSA E-Fil-
ing System.
Approximately 250,000 of the 300,000
Forms 8300 filed during each calendar
year from 2015 to 2018 were filed on pa-
per with the IRS. IRS employees manual-
ly input data from the paper-filed Forms
8300 into FinCEN’s BSA E-Filing Sys-
tem. This procedure requires significant
resources to be spent on processing and
data entry. Manual data entry can cause
delays in the input and retrieval of data,
affecting the timeliness of information
available for law enforcement and other
users to detect potential money launder-
ing, terrorist financing, and other tax and
financial fraud.
These proposed regulations would
require filers who are required to file at
least the applicable number of returns
identified in paragraphs (b)(1) and (b)(2)
of proposed §301.6011-2 during the cal-
endar year to also file their Forms 8300
electronically, as directed by the form’s
instructions. This requirement would in-
crease the timeliness and accuracy of data
entry, reduce postage costs, promote IT
modernization efforts, reallocate IRS staff
for priority assignments, and provide IRS
criminal and civil investigators and other
agencies with access to the data with up-
to-date and accurate information. Elec-
tronic filing would also protect against
possible future disruption and delays in
processing paper-filed Forms 8300. It is
anticipated that the form will direct filers
to use FinCEN’s BSA E-Filing system
(https://bsaefiling.fincen.treas.gov/main.
html), which is an internet-based secure
system with no cost to the user. The only
technical requirement of the BSA E-Filing
System is to have an internet connection
for access to the system. Nonetheless, the
proposed regulations would continue to
allow the Commissioner to waive the re-
quirement to file information returns elec-
tronically if the request for waiver demon-
strates hardship. The principal factor in
determining hardship will be the extent,
if any, to which the cost of electronical-
ly filing Form 8300 exceeds the cost of
filing Form 8300 on paper. The proposed
regulations would also edit the example in
§1.6050I-1(d)(2)(iv) to provide additional
clarity for the rule illustrated in that ex-
ample.
C. Amending the electronic-filing
threshold
Under section 6011(e)(1), the Secretary
must prescribe regulations providing stan-
dards for determining which returns must
be filed electronically. Section 6011(e)(2)
(A), however, until it was amended by the
TFA, prevented the Secretary from requir-
ing any person to file returns electronical-
ly unless the person was required to file
at least 250 returns during the calendar
year. Section 2301 of the TFA amended
section 6011(e), changing the statutory
250-return threshold to a decreasing num-
ber over several years, as set forth in new
section 6011(e)(5). In accordance with
section 2301 of the TFA, these proposed
regulations would amend §301.6011-
2(c)(1)(i), which currently provides that
no person is required to electronically
file an information return covered under
§301.6011-2(b) unless the person is re-
quired to file 250 or more returns during
the calendar year. The proposed amend-
ments would remove references to the
250-return threshold in §301.6011-2(c)

Bulletin No. 2021–32 277 August 9, 2021
(1)(i) and add a new paragraph (c)(3)(i) to
§301.6011-2 that, in accordance with the
TFA, reduces the electronic-filing thresh-
old for information returns covered under
§301.6011-2(b) from 250 to 100, for re-
turns required to be filed during calendar
year 2022, and from 100 to 10, for returns
required to be filed during calendar years
after 2022.
Information returns are generally re-
quired to be filed between January and
March of the year following the calendar
year to which such returns relate. See sec-
tions 6071(b) and (c). If a taxpayer has,
for example, 13 employees in calendar
year 2022 and is required to file Forms
W-2 for those employees during calen-
dar year 2023, that taxpayer would, under
these proposed regulations, be required to
file those 13 Forms W-2 electronically.
The proposed incremental step-down
from 250 to 100 for information returns
required to be filed during calendar year
2022, and then from 100 to 10 for informa-
tion returns required to be filed after 2022,
will allow the IRS time to ensure it has
sufficient resources and updated program-
ming to seamlessly handle and process the
increased volume of electronically-filed
information returns and the applications
required to file those information returns
electronically.
The Treasury Department and the IRS
expect that by calendar year 2023 the IRS
will be prepared to handle and process the
anticipated increased volume of returns
and applications, and that no further in-
cremental step-down would be necessary
if these proposed regulations are finalized
and applicable to returns required to be
filed during calendar year 2023. Conse-
quently, persons required to file at least
10 information returns during the calendar
year 2023 would be required to file those
returns electronically. The Treasury De-
partment and the IRS request comments
on why persons required to file at least 10
information returns during the calendar
year 2023 would not be able to file those
returns electronically during that calendar
year and whether the Treasury Depart-
ment and the IRS should provide an incre-
mental step-down to 100 for information
returns required to be filed during calen-
dar year 2023, and then from 100 to 10
for information returns required to be filed
during calendar years after 2023.
D. Aggregation of returns to determine
whether the electronic-filing threshold is
met
Section 301.6011-2(c)(1)(iii) provides
that each type of information return cov-
ered under §301.6011-2(b) is considered
separately for purposes of determining
whether a person meets the 250-return
electronic-filing threshold. Therefore, dif-
ferent types of information returns are not
counted in the aggregate for purposes of
determining whether a person is required
to file a number of returns that equals or
exceeds the 250-return electronic-fil-
ing threshold during the calendar year
(non-aggregation rule).
These proposed regulations would
remove the non-aggregation rule from
§301.6011-2(c)(1)(iii). Section 6011(e)
does not prohibit the aggregation of in-
formation returns of different types in
determining whether a person meets the
electronic-filing threshold during a calen-
dar year. When the regulations specifically
providing for non-aggregation were pub-
lished in 1998, electronic filing was still
in the early stages of development and
not as commonly used as it is today. Both
the 250-return limitation that Congress
had included in the 1989 amendment to
section 6011(e) and the non-aggregation
rule that the Secretary prescribed helped
ensure that electronic-filing burdens and
costs were appropriate, given the existing
limits and accessibility to electronic-filing
technology at that time.
Since that time, electronic filing has be-
come more common, accessible, and eco-
nomical, as evidenced by the prevalence
of tax-return preparers and third-party
service providers who offer return-prepa-
ration and electronic-filing services, by
the availability of tax-return-preparation
software, and by the numbers of returns
already being filed electronically on a
voluntary basis. In 2018, for example, ap-
proximately 98.5 percent of information
returns were filed electronically. More-
over, electronic filing increases the IRS’s
timeliness and accuracy in processing re-
turn information, which, in turn, provides
faster and better customer service to tax-
payers with respect to those returns.
In light of the prevalence of electron-
ic filing and Congress’s enactment of the
TFA, which significantly expanded the
Secretary’s authority to prescribe regula-
tions requiring persons to file returns elec-
tronically, the Treasury Department and
the IRS have determined that the non-ag-
gregation rule is no longer necessary and
propose to remove it from §301.6011-
2(c). The proposed regulations would add
a new paragraph (c)(4)(i) to §301.6011-2
to provide that a person required to file
original information returns of any type
covered by §301.6011-2(b)(1) and (b)
(2) must count all those returns together
to determine whether the person meets or
exceeds the electronic-filing threshold for
the relevant calendar year.
The proposed regulations do not in-
clude Forms 8300 in the aggregation rule,
and no Form 8300 would be included in
determining whether a person is required
to file the applicable number of informa-
tion returns. A Form 8300 generally must
be filed within 15 days after a reportable
payment of more than $10,000 is received.
A filer may not know the number of Forms
8300 it will file in a calendar year until af-
ter the year is over, because the filer will
not know how many cash transactions
over $10,000 will occur during the year.
On the other hand, other information re-
turns described in §301.6011-2(b)(1) and
(2) do not need to be filed until after the
calendar year of the event being reported.
A filer of those other information returns
will therefore know at the beginning of the
calendar year whether the filer is required
to file at least the applicable number of
those other information returns because
those returns relate to the preceding calen-
dar year. Thus, the Treasury Department
and the IRS propose to require electron-
ic filing of Forms 8300 only if the filer is
required to file other information returns
electronically.
Under these proposed regulations, fil-
ers would generally understand early in
the calendar year their electronic-filing ob-
ligations for Forms 8300 without an undu-
ly complex aggregation rule. In addition,
these proposed regulations are consistent
with the TFA’s emphasis on development,
improvement, and expansion of modern
technology (see, for example, “An Act To
amend the Internal Revenue Code of 1986
to modernize and improve the Internal
Revenue Service, and for other purposes”
and “Subtitle B—Development of Infor-
mation Technology” under “Title II—21st

August 9, 2021 278 Bulletin No. 2021–32
Century IRS”), and are within the Secre-
tary’s expanded authority under the TFA
to prescribe regulations requiring persons
to file returns electronically.
E. Corrected returns must be filed in the
same manner as the original return
Section 301.6011-2 provides that the
non-aggregation rule applies separately to
each type of corrected information return
covered by §301.6011-2(b) such that, for
purposes of determining whether a per-
son meets the 250-return electronic-filing
threshold, corrected information returns
are counted separately from original infor-
mation returns, and each type of corrected
information return is counted separately.
The Treasury Department and the
IRS have determined that, to increase
the IRS’s timeliness and accuracy in pro-
cessing information returns, if persons
are required to file original information
returns electronically, they must file any
corresponding corrected information re-
turns electronically. Likewise, if persons
permitted to file information returns on
paper file those information returns on pa-
per, they must also file any corresponding
corrected information returns on paper.
As discussed in the next three paragraphs,
this will increase the IRS’s efficiency in
processing returns and should not cause
taxpayers to incur unreasonable costs.
Paper information returns are generally
filed at one of three different IRS Submis-
sion Processing Centers, depending on the
filer’s legal residence (for individuals) or
principal place of business (for entities).
When the IRS receives paper returns, it
must convert the return to an electron-
ic-data record before it can use the infor-
mation effectively. Electronic informa-
tion returns, on the other hand, do not go
through Submission Processing Centers;
they are generally filed through the IRS’s
Filing Information Returns Electronically
(FIRE) system or Affordable Care Act In-
formation Returns (AIR) system, depend-
ing on the type of return.
Because the procedures for process-
ing electronic returns and paper returns
are different, when an original return is
filed on paper and a corrected return is
filed electronically shortly thereafter, the
IRS may not have finished processing the
original paper return before the electronic
return is received. The IRS is thus not able
to reconcile differences as quickly as when
the original and corrected returns are filed
in the same manner. Similar processing is-
sues arise when an original return is filed
electronically and the corrected return is
filed on paper.
This proposed requirement will not re-
sult in any additional costs or burdens on
taxpayers with respect to electronic filing
because a filer who filed the original return
electronically has the software necessary
to file a corrected return electronically.
Thus, the proposed regulations would add
new paragraphs (c)(4)(ii)(A) and (c)(4)(ii)
(B) to §301.6011-2 to provide that correct-
ed information returns must be filed elec-
tronically if the corresponding original
return was required to be filed electroni-
cally, and that corrected returns must be
filed on paper if the corresponding origi-
nal return was permitted to be, and was,
filed on paper. In addition, the proposed
regulations would amend §301.6721-1(a)
(2)(ii), as discussed under section 5, Pro-
posed §301.6721-1, Rules Relating to
Penalties for Failure to File Correct Infor-
mation Returns, to provide that a failure to
file a corrected information return in the
same manner as the corresponding origi-
nal will be deemed a failure to correct the
corresponding original information return.
F. Special electronic-filing threshold for
partnerships of any size
Section 2301 of the TFA amended
the special rule for partnerships in sec-
tion 6011(e)(5) to authorize the Secretary
to reduce the electronic-filing threshold
for partnerships required to file returns.
The amended special rule for partner-
ships authorized the Secretary to reduce
the electronic-filing threshold at an ac-
celerated rate when compared to the gen-
eral electronic-filing threshold, phasing
out this special rule for partnerships for
returns required to be filed during cal-
endar years after 2021. These proposed
regulations do not include a special elec-
tronic-filing threshold for partnerships
because the final regulations are not ex-
pected to be applicable before the 2022 fil-
ing season, at which point the special rule
for partnerships will be phased out. For
all the reasons discussed in this preamble,
the proposed regulations would reduce,
for all persons, including partnerships, the
electronic-filing threshold for information
returns covered under §301.6011-2(b)
from 250 to 100, for returns required to be
filed during calendar year 2022, and from
100 to 10, for returns required to be filed
during calendar years after 2022. See sec-
tion 2.C., Amending the electronic-filing
threshold.
G. Special electronic-filing rule for
partnerships having more than 100
partners
Paragraph (6) of section 6011(e), as
that section was amended by the TFA,
provides, “Notwithstanding paragraph (2)
(A), the Secretary shall require partner-
ships having more than 100 partners to
file returns on magnetic media” (100-part-
ner rule). The statute uses the general term
“returns” without specifying the type of
returns that must be filed electronically.
But the legislative history of the Tax-
payer Relief Act of 1997, which added
the 100-partner rule to section 6011(e),
mentions the rule’s application only with
respect to partnership returns. H.R. Rep.
No. 105-220, at 675 (1997) (Conf. Rep.)
(“The House bill provides generally that
any partnership is required to provide the
tax return of the partnership (Form 1065),
as well as copies of the schedule[s] sent
to each partner (Form K–1), to the Inter-
nal Revenue Service on magnetic media.
An exception is provided for partnerships
with 100 or fewer partners.”).
In accordance with this legislative
history, the Secretary promulgated regu-
lations in 1999, §301.6011-3 (TD 8843),
requiring partnerships with more than
100 partners to file partnership returns
and all other information required by the
applicable forms and schedules electron-
ically.
In 2018, however, Congress enacted
the TTCA and moved this 100-partner rule
from section 6011(e)(2), where it appeared
as flush language under the 250-threshold
limitation, to a new subparagraph (B) un-
der section 6011(e)(5), “Special rules for
partnerships.” There is no legislative his-
tory to the 2018 TTCA that explains why
Congress moved the 100-partner rule. But
after the TTCA was enacted, the Joint
Committee on Taxation describes the rule
with respect to “returns,” rather than “tax

Bulletin No. 2021–32 279 August 9, 2021
return of the partnership (Form 1065),”
which is how the legislative history of the
Taxpayer Relief Act of 1997 described it.
Staff of the J. Comm. On Taxation, Techni-
cal Explanation of the Revenue Provisions
of the House Amendment to the Senate
Amendment to H.R. 1625, at 52 (JCX-6-
18) (“Present law requires that .... part-
nerships having more than 100 partners
are required to file returns electronical-
ly.”). In 2019, a year after TTCA moved
the 100-partner rule, Congress, in Title II
of the TFA, under Subtitle D, “Expanded
Use of Electronic Systems,” again moved
the 100-partner rule to a new paragraph
(6) under section 6011(e), “Partnerships
required to file on magnetic media.”
In light of the Joint Committee on Tax-
ation’s referring to “returns” in general in
describing this provision of the TTCA,
the TFA’s emphasis on development, im-
provement, and expansion of modern
technology, as discussed in this pream-
ble, the TFA’s emphasis on electronic fil-
ing (see “Subtitle D—“Expanded Use of
Electronic Systems” under Title II), and
the accessibility and prevalence of elec-
tronic filing, the Treasury Department and
the IRS propose to add a new paragraph
(c)(3)(ii)(B) to §301.6011-2 to require
partnerships with more than 100 partners
to file their information returns covered
by §301.6011-2(b) electronically, regard-
less of the number of information returns
being filed.
3. Proposed §1.6050I-0, Table of
contents, and §1.6050I-1, Returns
Relating to Cash in Excess of $10,000
Received in a Trade or Business
Section 1.6050I-1(e)(1) provides that
Form 8300 must be filed with the IRS by
the 15th day after the date cash in excess
of $10,000 is received in a trade or busi-
ness. Section 1.6050I-1(e)(3) provides
that Form 8300 must be filed by mailing
it to the address shown in the instructions
on the form. For all the reasons discussed
in this preamble, the proposed regula-
tions would remove references to mailing
Form 8300 to the IRS and require that the
form be filed as directed by the form’s in-
structions. See section 2.B., Form 8300
required to be filed electronically; sec-
tion 2.C., Amending the electronic-filing
threshold; and section 2.D., Aggregation
of returns to determine whether the elec-
tronic-filing threshold is met. The instruc-
tions to Form 8300 will explain how to
file the form electronically. The proposed
regulations would also update outdated ci-
tations in §1.6050I-0 and §1.6050I-1 that
cross-reference to the regulations under
Title 31 of the CFR and clarify the exam-
ple in §1.6050I-1(d)(2)(iv).
4. Proposed §1.6050I-2, Returns Relating
to Cash in Excess of $10,000 Received as
Bail by Court Clerks
Section 1.6050I-2(c)(1)(i) provides
that Form 8300 must be filed with the
IRS by the 15th day after the date cash
bail in excess of $10,000 is received.
Section 1.6050I-2(c)(3)(i) provides that
Form 8300 must be filed with the IRS of-
fice designated in the instructions on the
form. For all the reasons discussed in this
preamble, the proposed regulations would
remove references to filing Form 8300
with a specific IRS office and require that
the form be filed as directed by the form’s
instructions. See section 2.B., Form 8300
required to be filed electronically; sec-
tion 2.C., Amending the electronic-filing
threshold; and section 2.D., Aggregation
of returns to determine whether the elec-
tronic-filing threshold is met. The instruc-
tions to Form 8300 will explain how to file
the form electronically.
5. Proposed §301.6721-1, Rules Relating
to Penalties for Failure to File Correct
Information Returns
Paragraph (a)(2)(ii) of §301.6721-1,
Failure to file correct information returns,
states that no penalty will be imposed
solely by reason of failing to file electron-
ically, except to the extent that a failure
occurs with respect to more than 250 re-
turns. In accordance with changes made to
the 250-return threshold by section 2301
of the TFA, the proposed amendments to
§301.6721-1 would remove references to
a 250-return threshold with respect to pen-
alties for failure to file correct information
returns.
Section 301.6721-1(a)(2)(ii) also states
that the threshold requirements apply sep-
arately to original and corrected returns,
such that a filer that files 300 returns on
Form 1099-DIV and later files 70 cor-
rected returns on Form 1099-DIV could
file the corrected returns either on the
prescribed paper form (because they fall
below the 250-threshold requirement) or
electronically. For the reasons discussed
in this preamble, the Treasury Department
and the IRS propose to remove this rule
because they have determined that cor-
rected returns should be filed electroni-
cally if the corresponding original returns
were so filed. See section 2.E., Corrected
returns must be filed in the same manner
as the original return. These proposed
regulations would thus amend §301.6721-
1(a)(2)(ii) to provide that a failure to file a
corrected information return in the same
manner as the corresponding original will
be deemed a failure to correct the corre-
sponding original information return such
that the filer will not receive the benefit of
a reduced penalty under §301.6721-1(b)
for that corrected information return.
6. Proposed §301.6011-3, Rules for
Filing Partnership Returns Electronically
Section 301.6011-3 prescribes stan-
dards for determining whether a partner-
ship must file its partnership return elec-
tronically. In 2018, the TTCA amended
section 6011(e) to authorize the Secretary
to incrementally reduce, by regulation,
the electronic-filing threshold for part-
nerships. When section 2301 of the TFA
amended that particular statute again in
2019, to further reduce the electronic-fil-
ing threshold for partnerships, the Secre-
tary had not yet promulgated regulations
to implement that reduced-threshold rule
for partnerships. As discussed in this pre-
amble, these proposed regulations do not
include a special electronic-filing thresh-
old for partnerships because the final reg-
ulations are not expected to be applicable
before the 2022 filing season, at which
point the special rule for partnerships will
be phased out. See section 2.F., Special
electronic-filing threshold for partnerships
of any size. For returns required to be filed
during calendar years after 2021, section
2301 of the TFA authorizes the Secretary
to reduce the electronic-filing threshold
to 10 for all persons, including partner-
ships. These proposed regulations would
amend §301.6011-3(a) to reduce the elec-
tronic-filing threshold to 10 returns for
any partnership, in accordance with sec-

August 9, 2021 280 Bulletin No. 2021–32
tion 6011(e), as amended by the TFA. In
addition, for all the reasons discussed in
this preamble, the proposed regulations
would add a new paragraph (a)(5) to
§301.6011-3 that provides that all returns
of any type, including partnership returns,
excise-tax returns, employment-tax re-
turns, and information returns (but not in-
cluding schedules required to be attached
to or included with a partnership return),
are counted in the aggregate for purpos-
es of determining whether a partnership
of any size meets the electronic-filing
threshold of 10 returns in a calendar year,
and thus must file its partnership return
electronically. See sections 2.D., Aggre-
gation of returns to determine whether
the electronic-filing threshold is met; and
2.G., Special electronic-filing rule for
partnerships having more than 100 part-
ners. These rules relating to the require-
ments for determining when a partnership
is required to file its partnership return
electronically do not limit the application
of any other statute affecting partnership
returns that must be filed electronically,
such as section 6033(n), which requires
a partnership return filed by a section
501(d) apostolic organization to be filed
electronically.
7. Proposed §301.6011-5, Rules for
Filing Corporate Income Tax Returns
Electronically
Section 301.6011-5 prescribes stan-
dards for determining whether a corpo-
ration must file its income tax returns
electronically and requires large corpo-
rations to file the corporate income tax
return electronically if the corporation is
required to file during the calendar year at
least 250 returns of any type. The regula-
tion, however, applies only to those corpo-
rations that report total assets at the end of
the corporate taxable year of $10 million
or more on Schedule L of their Form 1120.
Section 2301 of the TFA amended section
6011(e) to authorize the Secretary to pre-
scribe regulations to reduce the number
of returns that a person may be required
to file during a calendar year before the
Secretary may impose an electronic-filing
requirement. These proposed regulations
would remove references to the 250-re-
turn threshold and reduce the electron-
ic-filing threshold for corporate income
tax returns to 10, for returns required to
be filed during calendar years after 2021,
in accordance with section 6011(e), as
amended by the TFA. In addition, the
Treasury Department and the IRS propose
to remove the $10 million rule, making
the regulation applicable to all corpora-
tions regardless of reportable assets. The
$10 million rule was never required by the
Code; rather, the Treasury Department and
the IRS prescribed the rule in 2007 to help
ensure that electronic-filing burdens and
costs were appropriate, given the existing
limits and accessibility to electronic-filing
technology at that time. With the current
prevalence and accessibility of electronic
filing even for small businesses, as well as
the benefits of quicker return processing,
the $10-million rule is no longer needed.
Accordingly, the proposed regulations
would require that any corporation re-
quired to file a corporate income tax re-
turn under §1.6012-2, regardless of the
corporation’s reported total assets at the
end of its taxable year, file that return elec-
tronically if the corporation is required to
file at least 10 returns of any type during
calendar years after 2021. The proposed
regulations would also update the exam-
ple to reflect these changes. The proposed
regulations do not change the existing rule
in §301.6011-5 that all returns of any type
are counted in determining whether a cor-
poration is required to file its income tax
return electronically.
8. Proposed §301.6037-2, Required
Use of Electronic Form for Returns of
Electing-Small Business Corporation
Section 301.6037-2 prescribes stan-
dards for determining whether an S cor-
poration must file its S corporation return
electronically. Section 301.6037-2 re-
quires S corporations to file their corpo-
rate income tax return electronically if the
corporation is required to file during the
calendar year at least 250 returns of any
type, but the regulation applies only to
those S corporations that report total as-
sets at the end of the corporation’s taxable
year that equal or exceed $10 million on
Schedule L of Form 1120-S.
Section 2301 of the TFA amended
section 6011(e), authorizing the IRS to
change the 250-return threshold to 10, for
returns required to be filed during calen-
dar years after 2021. These proposed reg-
ulations would remove references to the
250-return threshold and reduce the elec-
tronic-filing threshold for S corporations
to 10 in accordance with section 6011(e),
as amended by the TFA. In addition, the
Treasury Department and the IRS propose
to remove the $10 million rule for the
same reasons that it is eliminating the rule
for corporations. See section 7, Proposed
§301.6011-5, Rules for Filing Corporate
Income Tax Returns Electronically. With
the current prevalence and accessibility of
e-filing, as well as the benefits of quicker
processing of returns, the $10 million rule
is no longer needed. Accordingly, the pro-
posed regulations would require that any
S corporation required to file an S-corpo-
ration return under §1.6037-1, regardless
of the corporation’s reported total assets at
the end of its taxable year, file its income
tax return electronically if the corpora-
tion is required to file at least 10 returns
of any type during the calendar year. The
proposed regulations would also update
the example illustrating this rule to reflect
these changes.
9. Proposed §§1.6033-4 and 301.6033-4,
Required Filing in Electronic Form for
Returns by Organizations Required to
File Returns Under Section 6033
Section 1.6033-4 provides that the re-
turn of an organization that is required to
be filed electronically under §301.6033-4
must be filed in accordance with IRS rev-
enue procedures, publications, forms, or
instructions, including those posted elec-
tronically.
Section 301.6033-4 provides that an
organization required to file a return un-
der section 6033 on Form 990 must file its
Form 990 electronically if the organiza-
tion is required to file during the calendar
year at least 250 returns of any type and if
the organization has total assets as of the
end of the taxable year of $10 million or
more. It also provides that any organiza-
tion (regardless of total assets) required to
file Form 990-PF must file its Form 990-
PF electronically if it is required to file at
least 250 returns of any type during the
calendar year.
In accordance with section 3101 of the
TFA, these proposed regulations would
amend §§1.6033-4 and 301.6033-4 to re-

Bulletin No. 2021–32 281 August 9, 2021
place the term “magnetic media” with “in
electronic form.” These proposed regula-
tions would also amend §301.6033-4 to
remove any references to thresholds that
establish a requirement to file electroni-
cally because the TFA now requires that
any organization required to file a return
under section 6033 must file such return
in electronic form. Likewise, the proposed
regulations would amend §301.6033-4
by removing the following paragraphs:
paragraph (d)(1), which defines the term
“magnetic media”; paragraph (d)(3),
which defines the term “determination of
250 returns”; and paragraph (e), which il-
lustrates by example how the 250 number
is determined. In addition, the proposed
regulations would remove §301.6033-
4(b), which provides that the Commis-
sioner may grant waivers of the electron-
ic-filing requirement.
Section 3101 of the TFA does not pro-
vide for any waiver of or alternate method
to the electronic-filing requirements for
returns required to be filed under section
6033. Accordingly, these proposed regu-
lations would amend §301.6033-4 by re-
moving paragraph (b) that provides for a
waiver of the requirements.
Finally, these proposed regulations
would amend §301.6033-4(d)(2) to in-
clude Form 990-EZ, “Short Form Return
of Organization Exempt From Income
Tax,” as a return required to be filed under
section 6033, clarifying that section 3101
of the TFA mandates that all returns re-
quired to be filed under section 6033 must
be filed in electronic form.
10. Proposed §53.6011-1(c) Deletion,
Joint Filing of a Form 4720 Return
Section 3101(a) of the TFA amended
section 6033(n) to provide that any ex-
empt organization required to file a return
under section 6033 must file such return
in electronic form. Section 1.6033-2(a)
(2) provides, under the broad authority of
section 6033(a)(1) (requiring every orga-
nization exempt from taxation under sec-
tion 501(a) to file an annual return, stating
specifically the items of gross income, re-
ceipts, and disbursements, and such other
information for the purpose of carrying
out the internal revenue laws as the Sec-
retary may by forms or regulations pre-
scribe), that every private foundation must
file Form 990-PF, Return of Private Foun-
dation, as its annual information return. In
the case of a private foundation liable for
tax under chapter 42, such information as
is required by Form 4720 is to be furnished
by the private foundation as part of its an-
nual information return. See §1.6033-2(a)
(2)(ii)(J). The preamble to the final regula-
tions adding §1.6033-2(a)(2)(ii)(J) specif-
ically noted that Form 4720, when filed by
a private foundation, is part of the annu-
al information return required to be filed
under section 6033 as well as a tax return
required to be filed under section 6011.
Accordingly, Form 4720 filed by a private
foundation as part of the Form 990-PF is
a return required to be filed under sec-
tion 6033 and is thus required to be filed in
electronic form as a return required under
section 6033(n). For the electronic-filing
requirement for persons not described un-
der section 509(a) as a private foundation,
see section 16 of this preamble, Proposed
§301.6011-12, Required Use of Electronic
Form for Returns of Certain Excise Taxes
Under Chapters 41 And 42 of the Internal
Revenue Code.
If Form 4720 is filed by a private foun-
dation (or by a trust described in sec-
tion 4947(a)(2)) with respect to a transac-
tion to which other persons are required
to file under §53.6011-1(b) (persons liable
for excise tax imposed by Chapters 41 and
42 of the Code), and if the other persons’
tax years are the same as the foundation’s
or trust’s, §53.6011-1(c) allows the pri-
vate foundation and such other persons to
file a joint Form 4720, and, to the extent
applicable, that form will be considered
as the other persons’ return for purposes
of complying with the filing requirement
under §53.6011-1(b). This current regula-
tory permission to jointly file Form 4720,
however, is incompatible with the require-
ment under section 6033(n) to file the re-
turn electronically. Accordingly, because
the Form 4720 cannot be filed jointly in
electronic form, the proposed regulations
would delete §53.6011-1(c). Disqualified
persons thus will no longer be able to meet
their tax filing obligation under §53.6011-
1(b) by the joint-filing process.
Notice 2021-01, 2021-2 I.R.B. 315
(January 11, 2021), announced the IRS’s
intent to remove §53.6011-1(c) because
the amendments the TFA made to sec-
tions 6104 (that any annual return re-
quired to be filed electronically under
section 6033(n) must be made available
by the Secretary to the public as soon as
practicable in a machine-readable format)
and 6033 rendered unfeasible the ability
for a private foundation and other per-
sons to jointly file the same Form 4720
electronically. Notice 2021-01 was first
released to the public on December 16,
2020, and substantially described the ex-
pected contents of the proposed amend-
ments to §53.6011-1, in accordance with
section 7805(b)(1)(C). Thus, the proposed
changes to §53.6011-1 described in this
section are proposed to apply retroactively
as of January 1, 2021, as allowed by sec-
tion 7805(b)(1)(C).
11. Proposed §301.6057-3, Required
Use of Electronic Form for Filing
Requirements Relating to Deferred Vested
Retirement Benefit
Section 6057(a) requires the plan ad-
ministrator (within the meaning of sec-
tion 414(g)) of each plan, to which the
vesting standards of section 203 of the
Employee Retirement Income Security
Act of 1974 (ERISA) apply for a plan year,
to file, within the time prescribed by reg-
ulations, a registration statement with the
Secretary. The registration statement must
set forth the following information relat-
ing to the plan: (1) the name of the plan;
(2) the name and address of the plan ad-
ministrator; (3) the name and identifying
information of plan participants who sepa-
rated from service covered by the plan and
are entitled to deferred vested retirement
benefits; and (4) the nature, amount, and
form of deferred vested retirement bene-
fits to which the plan participants are enti-
tled. The form used to satisfy the reporting
requirements under section 6057 is Form
8955-SSA, Annual Registration Statement
Identifying Separated Participants with
Deferred Vested Benefits.
Section 6057(b) provides that any plan
administrator required to register under
section 6057(a) must, within the time
prescribed by regulations, also notify the
Secretary of any change in the name of the
plan or the name and address of the plan
administrator, the termination of the plan,
or the merger or consolidation of the plan
with any other plan or its division into two
or more plans.

August 9, 2021 282 Bulletin No. 2021–32
Section 301.6057-3 provides that a
registration statement required to be filed
under section 6057(a) or a notification re-
quired to be filed under section 6057(b)
must be filed electronically if the filer is re-
quired by the Code or regulations to file at
least 250 returns during the calendar year
that includes the first day of the plan year.
For the reasons discussed in this pream-
ble, and consistent with section 6011(e),
as amended by the TFA, these proposed
regulations would remove references to
the 250-return threshold and would reduce
the electronic-filing threshold to 10 for
registration statements required to be filed
under section 6057(a) and notifications re-
quired under section 6057(b) with respect
to an employee benefit plan for any plan
year that begins after December 31, 2021
(but only for filings with a filing deadline,
not taking into account extensions, after
July 31, 2022). See section 2.C., Amend-
ing the electronic-filing threshold.
12. Proposed §301.6058-2, Required
Use of Electronic Form for Filing
Requirements Relating to Information
Required in Connection with Certain
Plans of Deferred Compensation
Section 6058(a) generally requires that
every employer maintaining a pension,
annuity, stock bonus, profit-sharing, or
other funded plan of deferred compensa-
tion, or the plan administrator (within the
meaning of section 414(g)) of the plan,
file an annual return stating such informa-
tion as the Secretary may by regulations
prescribe with respect to the qualification,
financial condition, and operations of the
plan. The reporting requirement under
section 6058(a) is satisfied by filing a re-
turn in the Form 5500 series. The Form
5500, Annual Return/Report of Employ-
ee Benefit Plan, the Form 5500-SF, Short
Form Annual Return/Report of Small
Employee Benefit Plan, and Form 5500-
EZ, Annual Return of A One-Participant
(Owners/Partners and Their Spouses) Re-
tirement Plan or A Foreign Plan, make up
the Form 5500 series.
Section 301.6058-2(a) provides that
a return required to be filed under sec-
tion 6058 with respect to an employee
benefit plan must be filed electronically if
the filer is required by the Code or regu-
lations to file at least 250 returns during
the calendar year that includes the first day
of the plan year. For the reasons discussed
in this preamble, and in accordance with
section 6011(e), as amended by the TFA,
these proposed regulations would remove
references to the 250-return threshold and
reduce the electronic-filing threshold to
10 for returns required to be filed under
section 6058 with respect to an employee
benefit plan for any plan year that begins
after December 31, 2021 (but only for fil-
ings with a filing deadline, not taking into
account extensions, after July 31, 2022).
See section 2.C., Amending the electron-
ic-filing threshold. In addition, these pro-
posed regulations would provide a cross
reference, under §301.6058-2(d)(3), Cal-
culating the number of returns, to new
section 6011(e)(6) to alert taxpayers that
information regarding each plan for which
information is provided on a combined
annual return to satisfy the requirements
under section 6058 is treated as a separate
return for purposes of determining the
electronic-filing threshold.
Under section 104 of ERISA, the plan
administrator of a plan described in sec-
tion 6058(a) of the Code that is also an
employee pension benefit plan within the
meaning of section 3(2) of ERISA must
file an annual report on Form 5500, An-
nual Return/Report of Employee Benefit
Plan, or Form 5500-SF, Short Form An-
nual Return/Report of Small Employee
Benefit Plan (and all attachments to those
forms, including Schedules SB and MB)
electronically using the Department of La-
bor’s EFAST2 system, without regard to
the number of returns the filer is required
to file under the Code. The Department of
Labor has advised the Treasury Depart-
ment and the IRS that this proposed reg-
ulation does not affect the obligations of
any person required to file an annual report
electronically under 29 CFR 2520.104a-2
and section 104 of ERISA. An electronic
filing on Form 5500 or Form 5500-SF also
satisfies any obligation to file such forms
using electronic form under section 6011
of the Code. An employer that maintains
a one-participant or foreign plan (which
is not subject to section 104 of ERISA)
or the plan administrator of the plan may
satisfy the annual return filing require-
ments under section 6058(a) of the Code
by filing a Form 5500-EZ, Annual Return
of A One-Participant (Owners/Partners
and Their Spouses) Retirement Plan or
A Foreign Plan, which is required to be
filed electronically using the Department
of Labor’s EFAST2 system only if the em-
ployer or plan administrator is otherwise
required to file using electronic form un-
der section 6011.
13. Proposed §301.6059-2, Required
Use of Electronic Form for Filing
Requirements Relating to Periodic Report
of Actuary
Section 6059(a) generally requires that
a plan administrator (as defined in section
414(g)) of each defined benefit plan to
which section 412 applies file the actuar-
ial report described in section 6059(b) for
the first plan year for which section 412
applies to the plan and for each third plan
year thereafter (or more frequently if the
Secretary determines that more frequent
reports are necessary). The reporting re-
quirements under section 6059(a) and
(b) are satisfied by filing Schedule SB
(Form 5500), Single Employer Defined
Benefit Plan Actuarial Information and
Schedule MB (Form 5500), Multiem-
ployer Defined Benefit Plan and Certain
Money Purchase Plan Actuarial Informa-
tion. Section 301.6059-2 provides that an
actuarial report required to be filed under
section 6059 with respect to an employee
benefit plan must be filed electronically if
the filer is required by the Code or regu-
lations to file at least 250 returns during
the calendar year that includes the first day
of the plan year. For the reasons discussed
in this preamble, and in accordance with
section 6011(e), as amended by the TFA,
these proposed regulations would remove
references to the 250-return threshold and
would reduce the electronic-filing thresh-
old to 10, for actuarial reports required to
be filed under section 6059 with respect to
an employee benefit plan for any plan year
that begins after December 31, 2021 (but
only for filings with a filing deadline, not
taking into account extensions, after July
31, 2022). See section 2.C., Amending the
electronic-filing threshold. The Depart-
ment of Labor has advised the Treasury
Department and the IRS that the electron-
ic-filing threshold under section 6011(e)
does not affect the obligation of a plan
administrator or plan sponsor to file elec-
tronically with the Department of Labor

Bulletin No. 2021–32 283 August 9, 2021
a Schedule SB or Schedule MB as an at-
tachment to the Form 5500, as required by
29 CFR 2520.104a-2 and section 104 of
ERISA.
14. Proposed §301.6011-10, Certain
Organizations, Including Trusts, Required
To File Unrelated Business Income Tax
Returns in Electronic Form
Section 3101(b)(2) of the TFA amended
section 6011 to redesignate paragraph (h)
as paragraph (i) and add new paragraph
(h) that requires any organization required
to file an annual return under section 6011
that relates to any tax imposed by section
511 to file such return in electronic form,
effective for taxable years beginning af-
ter July 1, 2019. Section 3101 of the TFA
does not provide for any waiver of or al-
ternative method to the electronic-filing
requirement for returns required to be
filed under section 6011(h). The proposed
regulations would add a new regulation
under section 6011(h), §301.6011-10, in
accordance with the TFA, to require any
organization described in section 511(a)
(2) subject to the tax under section 511(a)
(1) or any trust described in section 511(b)
(2) subject to the tax under section 511(b)
(1) on their respective unrelated business
taxable income to file their unrelated busi-
ness income tax returns electronically.
15. Proposed §301.6011-11, Required
Use of Electronic Form for Returns for
Certain Tax-Advantaged Bonds
Under former sections 54AA and
6431(f) of the Code, issuers of qualified
taxable bonds that provide a refundable
federal tax credit payable directly to the
issuer of the bond, such as build-America
bonds, recovery zone economic develop-
ment bonds, new clean renewable ener-
gy bonds, qualified energy conservation
bonds, qualified zone academy bonds,
and qualified school construction bonds,
can elect to receive a direct payment from
the federal government based upon a per-
centage of the interest payments on these
bonds. Section 3.1 of Notice 2009-26,
2009-16 I.R.B. 833, 836 (April 20, 2009),
and section 3 of Notice 2010-35, 2010-19
I.R.B. 660, 662 (May 10, 2010), provide
that issuers of qualified bonds must sub-
mit a Form 8038-CP, Return for Credit
Payments to Issuers of Qualified Bonds,
to request payment of the amount of the
credit within a prescribed time before or
after each applicable interest payment
date, depending on whether the bonds are
fixed rate or variable rate. During 2013
to 2018, the IRS processed an average
of $5 billion in direct payment requests;
amounts paid on each return varied from
less than $1,000 to more than $65 million.
During 2019, state and local governments
filed approximately 10,000 Forms 8038-
CP in paper form. The IRS expects that it
will continue to receive Forms 8038-CP
from these issuers during the entire term
of the bonds, which may be more than 20
years.
The proposed regulations would re-
quire filers who are required to file at least
10 returns of any type during the calendar
year to file their Forms 8038-CP electron-
ically, as directed by the form’s instruc-
tions. This requirement would increase
the timeliness and accuracy of process-
ing these forms and promote IT modern-
ization efforts. Proposed §301.6011-11
would also provide that the Commissioner
may grant individual waivers of the e-fil-
ing requirement of this section in cases of
undue hardship. The Treasury Department
and the IRS anticipate issuing guidance
that will set forth procedures whereby a
taxpayer may request a hardship waiver
for filing Form 8038-CP electronically.
16. Proposed §301.6011-12, Required
Use of Electronic Form for Returns of
Certain Excise Taxes Under Chapters 41
and 42 of the Internal Revenue Code
Section 2301 of the TFA amended
section 6011(e), changing the 250-return
threshold to a 10-return threshold for re-
turns required to be filed in calendar years
after 2021. The proposed regulations
would add a new regulation under section
6011(e), §301.6011-12, that would require
the electronic filing of Form 4720, Return
of Certain Excise Taxes Under Chapters
41 and 42 of the Internal Revenue Code.
The proposed regulations would require a
person to file the Form 4720 electronical-
ly if that person is required to file at least
10 returns of any type during the calendar
year. Proposed §301.6011-12 would also
provide that the Commissioner may grant
individual waivers of the requirements of
this section in cases of undue hardship.
The Treasury Department and the IRS
anticipate issuing guidance that will set
forth procedures whereby a taxpayer may
request a hardship waiver for filing Form
4720 electronically. The proposed regula-
tions relating to the requirements for de-
termining whether a person must file its
Form 4720 electronically would not limit
the application of any other statute affect-
ing Form 4720, such as section 6033(n),
which requires a Form 4720 filed by orga-
nizations recognized as tax exempt under
section 501(c)(3) and classified as private
foundations under section 509(a) to be
filed electronically, as discussed under
section 10, Proposed §53.6011-1(c) Dele-
tion, Joint Filing of a Form 4720 Return.
17. Proposed §301.6011-13, Required
Use of Electronic Form for Split-Interest
Trust Returns
Section 2301 of the TFA amended
section 6011(e), changing the 250-re-
turn threshold to a 10-return threshold
for returns required to be filed in calen-
dar years after 2021. The proposed reg-
ulations would add a new regulation un-
der section 6011(e), §301.6011-13, that
would require the filing of Form 5227,
Split-Interest Trust Information Return,
electronically. Forms 5227 are filed by
split-interest trusts to report the trust’s
financial activities, including distribu-
tions to the beneficiaries. The proposed
regulations would require a trust to file
the Form 5227 electronically if the trust
is required to file at least 10 returns of
any type during the calendar year. Pro-
posed §301.6011-13 would also provide
that the Commissioner may grant indi-
vidual waivers of the requirements of
this section in cases of undue hardship.
The Treasury Department and the IRS
anticipate issuing guidance that will set
forth procedures whereby a taxpayer may
request a hardship waiver for filing Form
5227 electronically.
18. Proposed §301.6011-14, Required
Use of Electronic Form or Other
Machine-Readable Form for Material
Advisor Disclosure Statements
The proposed regulations would add
a new regulation under section 6011(e),

August 9, 2021 284 Bulletin No. 2021–32
§301.6011-14, that would require the
filing of Form 8918, Material Advisor
Disclosure Statement, electronically
or in other machine-readable form, in
accordance with revenue procedures,
publications, forms, instructions, or oth-
er guidance, including postings on the
IRS.gov website. Section 6111 requires
each material advisor with respect to
any reportable transaction to make a
return setting forth certain information
with respect to the reportable transac-
tion. Section 301.6111-3(d) clarifies
that the return required to be filed un-
der section 6111(a) is the Form 8918.
Form 8918 is currently filed on paper
and must be mailed to the Office of Tax
Shelter Analysis in Ogden, Utah. The
proposed regulations would require a
material advisor to file the Form 8918
electronically or in other machine-read-
able form if the material advisor is re-
quired to file at least 10 returns of any
type during the calendar year, in accor-
dance with section 6011(e), as amended
by section 2301 of the TFA. This re-
quirement would increase the timeliness
and accuracy of processing the data on
Form 8918, reduce postage costs, and
promote IT modernization efforts. Pro-
posed §301.6011-14 would also pro-
vide that the Commissioner may grant
individual waivers of the requirements
of this section in cases of undue hard-
ship. The Treasury Department and the
IRS anticipate issuing guidance that will
set forth procedures whereby a taxpayer
may request a hardship waiver from fil-
ing Form 8918 electronically.
19. Proposed §301.6011-15, Required
Use of Electronic Form for Withholding
Tax Returns
The proposed regulations would add
a new regulation under section 6011(e),
§301.6011-15, that would require the fil-
ing of Form 1042, Annual Withholding
Tax Return for U.S. Source Income of For-
eign Persons, electronically in accordance
with revenue procedures, publications,
forms, instructions, or other guidance, in-
cluding postings on the IRS.gov website.
Sections 1441 and 1442 require withhold-
ing agents to withhold tax from payments
made to foreign persons with respect to
certain U.S. source income and to report
those payments and the tax withheld for
each recipient. Section 1.1461-1(c) speci-
fies that the reporting be on Form 1042-S,
Foreign Persons’ U.S. Source Income Sub-
ject to Withholding. In addition, §1.1461-
1(b) requires withholding agents to make
an annual income tax return on Form 1042
that reports the aggregate income paid and
taxes withheld for the preceding calendar
year.
The IRS verifies the amount of with-
holding reported on Form 1042 and de-
posited with the IRS against amounts
reported as withheld on Forms 1042-S.
Form 1042-S is already required to be
electronically filed to the extent provid-
ed under §301.6011-2 for a withholding
agent that is not a financial institution.
But the Form 1042 is not required to
be electronically filed. To increase the
timeliness and accuracy of processing
refunds and credits claimed by foreign
persons that have amounts withheld
and reported on Form 1042-S, proposed
§301.6011-15 would require Form 1042
filers—except for individuals, estates, or
trusts—to file Form 1042 electronically
if they are required to file 10 or more
returns of any type during the calendar
year, in accordance with section 6011(e),
as amended by section 2301 of the TFA.
Proposed §301.6011-15 would also re-
quire partnerships with more than 100
partners to file their Forms 1042 elec-
tronically, regardless of the number of
returns the partnership is required to
file during the calendar year. Proposed
§301.6011-15 would also provide that
the Commissioner may grant individual
waivers of the requirements of this sec-
tion in cases of undue hardship.
20. Proposed §301.6012-2, Required
Use of Electronic Form for Income
Tax Returns of Certain Political
Organizations
Section 2301 of the TFA amended
section 6011(e), changing the 250-re-
turn threshold to a 10-return threshold
for returns required to be filed in cal-
endar years after 2021. The proposed
regulations would add a new regulation
under sections 6011(e) and 6012(a),
§301.6012-2, to require the filing of
Form 1120-POL, U.S. Income Tax Return
for Certain Political Organizations elec-
tronically. The Form 1120-POL is filed
by political organizations, described in
section 527 of the Code, to report income
not specifically excluded from tax under
section 527 and by exempt organizations
subject to tax under section 527(f)(1)
of the Code. The proposed regulations
would require an organization to file the
Form 1120-POL electronically if the or-
ganization is required to file at least 10
returns of any type during the calendar
year. Proposed §301.6012-2 would also
provide that the Commissioner may grant
individual waivers of the requirements of
this section in cases of undue hardship.
The Treasury Department and the IRS
anticipate issuing guidance that will set
forth procedures whereby a taxpayer may
request a hardship waiver for filing Form
1120-POL electronically.
21. Proposed §54.6011-3, Required
Use of Electronic Form for the Filing
Requirements for the Return for Certain
Excise Taxes Related to Employee Benefit
Plans
The proposed regulations would add
a new regulation under section 6011(e),
§54.6011-3, to require the filing of Forms
5330, Return of Excise Taxes Related to
Employee Benefit Plans, electronically.
Section 2301 of the TFA amended sec-
tion 6011(e), changing the 250-return
threshold to a 10-return threshold for
returns required to be filed during cal-
endar years after 2021. The proposed
regulations would require a filer to file
the Form 5330 electronically if the filer
is required to file at least 10 returns of
any type during the calendar year. Pro-
posed §54.6011-3 would also provide
that the Commissioner may grant indi-
vidual waivers of the requirements of
this section in cases of undue hardship.
The Treasury Department and the IRS
anticipate issuing guidance that will set
forth procedures whereby a taxpayer may
request a hardship waiver for filing Form
5330 electronically.
22. Proposed §1.1461-1, Payment and
Returns of Tax Withheld
Section 1.1461-1 prescribes require-
ments for withholding agents to file in-
formation returns with respect to U.S.

Bulletin No. 2021–32 285 August 9, 2021
source income of foreign persons. Sec-
tion 1.1461-1(c)(5) provides that a with-
holding agent that makes 250 or more
Form 1042–S information returns for a
taxable year must file those forms elec-
tronically as required under §301.6011-
2(b). The proposed regulations would
amend §1.1461-1 to remove paragraph (c)
(5) because the electronic-filing require-
ment for Form 1042-S is contained in
§301.6011-2(b) and the 250-return thresh-
old would no longer apply if the proposed
amendments to §301.6011-2 are finalized
in a Treasury decision.
23. Proposed §1.1474-1, Liability for
Withheld Tax and Withholding Agent
Reporting
Section 1.1474-1 provides rules for
withholding agents making payments
under chapter 4 of the Code. The first
sentence in §1.1474-1(e) provides that
withholding agents that are not finan-
cial institutions and that are required
to file 250 or more Forms 1042–S for a
taxable year must file those forms elec-
tronically, referencing §301.6011-2(b).
The proposed regulations would amend
§1.1474-1 to remove the first sentence in
§1.1474-1(e) because the electronic-filing
requirement for Form 1042-S is contained
in §301.6011-2(b) and the 250-return
threshold would no longer apply if the
proposed amendments to §301.6011-2 are
finalized in a Treasury decision.
24. Proposed §301.1474-1, Required
Use of Electronic Form for Financial
Institutions Filing Form 1042, Form
1042-S, or Form 8966
These proposed regulations would
amend §301.1474-1 to add a requirement
that a financial institution must file its
Form 1042 electronically, without regard
to the number of returns required to be
filed during the calendar year, in accor-
dance with section 6011(e)(4). The exist-
ing provision in §301.1474-1(b), which
provides that the Commissioner may grant
individual waivers of the requirements
of §301.1474-1 in cases of undue hard-
ship, would also apply to the proposed
electronic-filing requirement relating to
Form 1042.
25. Proposed §1.6050M-1, Information
returns relating to persons receiving
contracts from certain federal executive
agencies
Section 1.6050M-1 requires federal
executive agencies who enter into certain
contracts, as defined under §1.6050M-1(b)
(2), to file information returns with respect
to those contracts. Under §1.6050M-1(d),
the information returns must be filed on a
quarterly basis; in addition, if the federal
executive agency, on any October 1, ex-
pects to enter into 250 or more contracts
during the one-year period beginning on
October 1, it must file the information re-
turns electronically.
Section 2301 of the TFA amended sec-
tion 6011(e), authorizing the IRS to change
the 250-return threshold to 10, for returns
required to be filed during calendar years
after 2021. For the reasons discussed in
this preamble, and consistent with section
6011(e), as amended by the TFA, these
proposed regulations would remove ref-
erences to the 250-return threshold under
§1.6050M-1 and would reduce the elec-
tronic-filing threshold from 250 to 100,
for information returns required to be filed
during calendar year 2022, and from 100
to 10, for information returns required to
be filed during calendar years after 2022.
Proposed §1.6050M-1 would also pro-
vide that the Commissioner may grant
individual waivers of the requirements of
this section in cases of undue hardship.
26. Proposed §1.6045-4, Information
returns relating to persons receiving
contracts from certain federal executive
agencies.
Section 1.6045-4 requires a real estate
reporting person to file information re-
turns with respect to real-estate transac-
tions. Section 1.6045-4(k) provides rules
for filing these returns electronically. The
form used to report these transactions is
a form covered under §301.6011-2(b)(1).
Section 301.6011-2 provides the rules for
electronically filing the forms listed in
§301.6011-2(b)(1). These proposed reg-
ulations would thus remove paragraph
(k) from §1.6045-4 because the elec-
tronic-filing requirement is contained in
§301.6011-2.
27. Withdrawal of May 2018 proposed
regulations
In light of the TFA, the Treasury De-
partment and the IRS withdraw the May
2018 proposed regulations under section
6011(e) because those proposed regula-
tions interpret a provision of the Code that
has been amended. The Treasury Depart-
ment and the IRS have determined that
the amendments made to section 6011(e)
by the TFA require guidance to be issued
by regulations. Withdrawing the proposed
regulations and reissuing new proposed
regulations ensure that all persons affect-
ed by the proposed regulations will have a
meaningful opportunity to publicly com-
ment.
Special Analyses
These regulations are not subject to re-
view under section 6(b) of Executive Or-
der 12866 pursuant to the Memorandum
of Agreement (April 11, 2018) between
the Treasury Department and the Office
of Management and Budget regarding re-
view of tax regulations.
Pursuant to the Regulatory Flexibili-
ty Act (5 U.S.C. chapter 6), it is hereby
certified that this proposed rule, if final-
ized, will not have a significant economic
impact on a substantial number of small
entities. Although these rules may affect
a substantial number of small entities, for
the reasons discussed in the following
paragraphs, the economic impact is not
significant.
Under section 6011(e) of the Code and
§§1.6050M-1, 301.6011-2, 301.6011-
3, 301.6011-5, 301.6037-2, 301.6057-3,
301.6058-2, and 301.6059-2, filers are
already required to file returns and state-
ments electronically if, during a calen-
dar year, they are required to file 250 or
more returns. The eight proposed rules—
§§1.6050M-1, 301.6011-2, 301.6011-3,
301.6011-5, 301.6037-2, 301.6057-3,
301.6058-2, and 301.6059-2—would
lower the 250-return threshold as autho-
rized by section 6011(e), as amended by
section 2301 of the TFA. A filer may re-
quest that the IRS waive the electronic-fil-
ing requirement if the filer’s cost to com-
ply with the rule would cause a financial
hardship. The IRS routinely grants meri-

August 9, 2021 286 Bulletin No. 2021–32
torious hardship waiver requests. Accord-
ingly, the economic burden on the limited
number of small entities that are not cur-
rently filing electronically will be slight;
and small entities that would experience a
hardship because of these seven proposed
rules may seek a waiver.
Under section 6050I of the Code and
§§1.6050I-1 and 1.6050I-2, filers are re-
quired to file Forms 8300 if, in the course
of their trade or business, they receive more
than $10,000 in cash in one transaction or in
two or more related transactions. The pro-
posed rule under §301.6011-2(b)(3) would
require filers of Forms 8300 to file those
forms electronically if such filers are also
required to file returns electronically under
paragraphs (b)(1) and (b)(2) of §301.6011-
2. The Treasury Department and the IRS
expect filers of Form 8300 to use FinCEN’s
BSA E-Filing System, which is free, re-
quiring only an internet connection. The
economic impact on small entities should
thus not be significant. Nonetheless, small
entities that would experience a hardship
because of this proposed rule may seek a
hardship waiver.
Under section 6011(e)(4) of the Code
and §301.1474-1, financial institutions
defined in section 1471(d)(5) of the Code
already are required to electronically file
Forms 1042-S. The proposed rule under
§301.1474-1(a) would extend this filing
requirement to Forms 1042 filed by the
same financial institutions. The economic
impact on small entities should thus not
be significant. Nonetheless, small entities
that would experience a hardship because
of this proposed rule may seek a hardship
waiver.
Under section 6011(h) of the Code, as
amended by section 3101 of the TFA, or-
ganizations required to file annual returns
relating to any tax imposed by section 511
must file those returns in electronic form.
The proposed regulation §301.6011-10
implements this statutory requirement.
The economic impact of the proposed reg-
ulation should thus be insignificant.
Under section 6033(n), as amend-
ed by section 3101 of the TFA, orga-
nizations required to file returns under
section 6033 must file those returns in
electronic form. The proposed regula-
tions under §§1.6033-4, 53.6011-1, and
301.6033-4 implement this statutory
requirement. The economic impact of
these proposed regulations should thus
be insignificant.
The seven proposed regulations under
§§54.6011-3, 301.6011-11, 301.6011-12,
301.6011-13, 301.6011-14, 301.6011-15,
and 301.6012-2 would require electronic
filing for certain returns not currently re-
quired to be filed electronically. Because
electronic filing has become more com-
mon, accessible, and economical, the
economic impact of these proposed rules
on small entities should be insignificant.
But if the cost to comply with these elec-
tronic-filing requirements would cause a
financial hardship, an entity may request a
waiver. The IRS routinely grants meritori-
ous hardship waiver requests. According-
ly, the burden on small entities affected by
these rules will be slight.
Accordingly, it is hereby certified that
these proposed regulations will not have
a significant economic impact on a sub-
stantial number of small entities with-
in the meaning of section 601(6) of the
RFA.
Section 202 of the Unfunded Mandates
Reform Act of 1995 requires that agencies
assess anticipated costs and benefits and
take certain other actions before issuing a
final rule that includes any federal man-
date that may result in expenditures in any
one year by a state, local, or tribal govern-
ment, in the aggregate, or by the private
sector, of $100 million in 1995 dollars,
updated annually for inflation. This regu-
lation does not include any federal man-
date that may result in expenditures by
state, local, or tribal governments, or by
the private sector in excess of that thresh-
old.
Executive Order 13132 (titled Federal-
ism) prohibits an agency from publishing
any rule that has federalism implications
if the rule either imposes substantial, di-
rect compliance costs on state and local
governments, and is not required by stat-
ute, or preempts state law, unless the agen-
cy meets the consultation and funding re-
quirements of section 6 of the Executive
Order. This rule does not have federalism
implications and does not impose substan-
tial direct compliance costs on state and
local governments or preempt state law,
within the meaning of the Executive Or-
der.
Pursuant to section 7805(f) of the
Code, this proposed regulation has been
submitted to the Chief Counsel for the
Office of Advocacy of the Small Business
Administration for comment on its impact
on small business.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to comments that are sub-
mitted timely to the IRS as prescribed in
this preamble under the ADDRESSES
section. The Treasury Department and the
IRS request comments on all aspects of
the proposed regulations. Any comments
submitted will be available at www.regu-
lations.gov or upon request.
The public hearing is being held by
teleconference on September 22, 2021 at
10 a.m. EST. Requests to speak and out-
lines of topics to be discussed at the pub-
lic hearing must be received by Septem-
ber 21, 2021. If no outlines are received
by September 21, 2021, the public hearing
will be cancelled. Requests to attend the
public hearing must be received by 5:00
p.m. EST on September 20, 2021. The
telephonic hearing will be made accessi-
ble to people with disabilities. Requests
for special assistance during the telephon-
ic hearing must be received by September
17, 2021.
Drafting Information
The principal author of these proposed
regulations is Casey R. Conrad of the Of-
fice of the Associate Chief Counsel (Pro-
cedure and Administration). Other person-
nel from the Treasury Department and the
IRS participated in the development of the
regulations.
Statement of Availability of IRS
Documents
IRS revenue procedures, notices, and
other guidance cited in this document are
published in the Internal Revenue Bulletin
(or Cumulative Bulletin) and are available
from the Superintendent of Documents,
U.S. Government Publishing Office,
Washington, DC 20402, or by visiting the
IRS website at http://www.irs.gov.

Bulletin No. 2021–32 287 August 9, 2021
Withdrawal of Proposed Regulations
Under the authority of 26 U.S.C. 7805,
§301.6011-2 and §301.6721-1 of the
notice of proposed rulemaking (REG-
102951-16) that was published in the Fed-
eral Register on Thursday, May 31, 2018
(83 FR 24948) is withdrawn.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
26 CFR Part 53
Excise taxes, Foundations, Invest-
ments, Lobbying, Reporting and record-
keeping requirements.
26 CFR Part 54
Excise taxes, Pensions, Reporting and
recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Ex-
cise taxes, Gift taxes, Income taxes, Pen-
alties, Reporting and recordkeeping re-
quirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR parts 1, 53, 54
and 301 are proposed to be amended as
follows:
PART 1-INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding the following
entries in numerical order:
Authority: 26. U.S.C. 7805 * * *
Section 1.6033-4 also issued under 26
U.S.C. 6033.
Section 1.6037-2 also issued under 26
U.S.C. 6037.
* * * * *
Par. 2. Section 1.1461-1 is amended by
removing paragraph (c)(5) and revising
paragraph (i) to read as follows:
§1.1461-1. Payment and returns of tax
withheld.
* * * * *
(i) Applicability date. Except as pro-
vided in paragraph (c)(2)(iii) of this
section, this section applies to returns
required for payments made on or after
[the date of publication of the Treasury
decision adopting these rules as final reg-
ulations in the Federal Register]. (For
payments made before [Date of publi-
cation of the Treasury decision adopt-
ing these rules as final regulations in the
Federal Register] and on or after Janu-
ary 1, 2022, see this section as in effect
and contained in 26 CFR part 1, as re-
vised April 1, 2021. For payments made
before January 1, 2022, see this section
as in effect and contained in 26 CFR part
1, as revised April 1, 2020.)
Par. 3. Section 1.1471-0 is amended by
revising the entries in the table of contents
for §1.1474-1(e) and (j) and §301.1474-
1(d)(1) and (e) to read as follows:
§1.1471-0 Outline of regulation
provisions for sections 1471 through
1474.
* * * * *
§1.1474-1 Liability for withheld tax
and withholding agent reporting.
* * * * *
(e) Reporting in electronic form.
* * * * *
(j) Applicability date.
* * * * *
§301.1474-1 Required use of electronic
form for financial institutions filing Form
1042, Form 1042-S, or Form 8966.
* * * * *
(d) * * *
(1) Magnetic media or electronic form.
* * * * *
(e) Applicability date.
Par. 4. Section 1.1474-1 is amended by
revising paragraphs (e) and (j) to read as
follows:
§1.1474-1 Liability for withheld tax
and withholding agent reporting.
* * * * *
(e) Reporting in electronic form. See
§301.6011-2(b) of this chapter for the re-
quirements of a withholding agent that is
not a financial institution with respect to
the filing of Forms 1042-S in electronic
form. See §301.1474-1(a) of this chapter
for the requirements applicable to a with-
holding agent that is a financial institution
with respect to the filing of Forms 1042-S
in electronic form.
* * * * *
(j) Applicability date. This section
applies to returns required for payments
made on or after [Date of publication of
the Treasury decision adopting these rules
as final regulations in the Federal Regis-
ter]. (For the rules that apply before [the
date of publication of the Treasury deci-
sion adopting these rules as final regula-
tions in the Federal Register] and on or
after January 6, 2017, see this section as
in effect and contained in 26 CFR part 1,
as revised April 1, 2021.)
Par. 5. Section 1.6033-4 is revised to
read as follows:
§1.6033-4 Required filing in electronic
form for returns by organizations
required to file returns under
section 6033.
(a) In general. The return of an or-
ganization that is required to be filed in
electronic form under §301.6033-4 of this
chapter must be filed in accordance with
revenue procedures, publications, forms,
instructions, or other guidance.
(b) Applicability date. The rules of this
section apply for returns required to be
filed for taxable years ending on or after
[Date of publication of the Treasury deci-
sion adopting these rules as final regula-
tions in the Federal Register].
Par. 6. Section 1.6037-2 is revised to
read as follows:
§1.6037-2 Required use of electronic
form for income tax returns of electing
small business corporations.
(a) In general. The return of an elect-
ing small business corporation that is
required to be filed electronically under
§301.6037-2 of this chapter must be filed
in accordance with Internal Revenue Ser-
vice revenue procedures, publications,
forms, or instructions, including those
posted electronically.

August 9, 2021 288 Bulletin No. 2021–32
(b) Applicability date. The rules of this
section apply for returns required to be
filed for taxable years ending on or after
[Date of publication of the Treasury deci-
sion adopting these rules as final regula-
tions in the Federal Register].
Par. 7. Section 1.6045-2 is amended by
revising paragraphs (g)(2) and (i) to read
as follows:
§1.6045-2 Furnishing statement
required with respect to certain
substitute payments.
* * * * *
(g) * * *
(2) Reporting in electronic form. For
information returns filed after December
31, 1996, see §301.6011-2 of this chapter
for rules relating to filing information re-
turns in electronic form and for rules relat-
ing to waivers granted for undue hardship.
A broker or barter exchange that fails to
file a Form 1099 electronically, when re-
quired, may be subject to a penalty under
section 6721 for each such failure. See
paragraph (g)(4) of this section.
* * * * *
(i) Applicability date. This section ap-
plies to substitute payments received by
a broker after December 31, 1984. The
amendments to paragraph (c) of this sec-
tion apply to payee statements due after
December 31, 2014. For payee statements
due before January 1, 2015, §1.6045-2(c)
(as contained in 26 CFR part 1, revised
April 2013) shall apply. The amendments
to paragraph (g)(2) of this section apply
to information returns required to be filed
during calendar years beginning after
[Date of publication of the Treasury deci-
sion adopting these rules as final regula-
tions in the Federal Register].
Par. 8. Section 1.6045-4 is amended by
removing and reserving paragraph (k) and
revising paragraph (s) to read as follows:
§1.6045-4 Information reporting on
real estate transactions with dates of
closing on or after January 1, 1991.
* * * * *
(s) Applicability date. This section ap-
plies for real estate transactions with dates
of closing (as determined under paragraph
(h)(2)(ii) of this section) that occur on or
after January 1, 1991. The amendments
to paragraphs (b)(2)(i)(E), (b)(2)(ii) and
(c)(2)(i) of this section apply to sales or
exchanges of standing timber for lump-
sum payments completed after May 28,
2009. The amendments to paragraph (m)
(1) of this section apply to payee state-
ments due after December 31, 2014. For
payee statements due before January 1,
2015, §1.6045-4(m)(1) (as contained in
26 CFR part 1, revised April 2013) shall
apply. The removal of paragraph (k) of
this section applies for information returns
required to be filed during calendar years
beginning after [Date of publication of the
Treasury decision adopting these rules as
final regulations in the Federal Register].
Par. 9. Section 1.6050I-0 is amended
by revising the entry in the table of con-
tents for §1.6050I-1(d)(2)(ii) as follows:
§1.6050I-0 Table of contents.
* * * * *
(d) * * *
(2) * * *
(ii) Casinos exempt under 31 CFR
1010.970(c).
* * * * *
Par. 10. Section 1.6050I-1 is amended
by:
1. Revising paragraphs (a)(3)(ii), (c)(1)
(iv), (d)(2)(i), (d)(2)(ii):
2. In paragraph (d)(2)(iv), designating
the example as paragraph (d)(2)(iv)
(A);
3. Revising newly designated paragraph
(d)(2)(iv)(A) and adding paragraph
(d)(2)(iv)(B);
4. Revising paragraphs (e)(1) and (e)(3)
(i); and
5. Adding paragraph (h).
The revisions and additions read as fol-
lows:
§1.6050I-1 Returns relating to cash in
excess of $10,000 received in a trade or
business.
(a) * * *
(3) * * *
(ii) Exception. An agent who receives
cash from a principal and uses all of the
cash within 15 days in a cash transaction
(second cash transaction) which is report-
able under section 6050I or 5312 of title
31 of the United States Code and the reg-
ulations thereunder (31 CFR Chapter X),
and who discloses the name, address, and
taxpayer identification number of the prin-
cipal to the recipient in the second cash
transaction need not report the initial re-
ceipt of cash under this section.
* * * * *
(c) * * *
(1) * * *
(iv) Exception for certain loans. A ca-
shier’s check, bank draft, traveler’s check,
or money order received in a designated
reporting transaction is not treated as cash
pursuant to paragraph (c)(1)(ii)(B)(1) of
this section if the instrument constitutes
the proceeds of a loan from a bank (as that
term is defined in 31 CFR Chapter X).
* * * * *
(d) * * *
(2) * * * (i) In general. If a casino re-
ceives cash in excess of $10,000 and is
required to report the receipt of such cash
directly to the Treasury Department under
31 CFR 1021.310 or 1010.360 and is sub-
ject to the recordkeeping requirements of
31 CFR 1021.400, then the casino is not
required to make a return with respect
to the receipt of such cash under section
6050I and these regulations.
(ii) Casinos exempt under 31 CFR
1010.970(c). Under the authority of sec-
tion 6050I(c)(1)(A), the Secretary may
exempt from the reporting requirements
of section 6050I casinos with gross annual
gaming revenue in excess of $1,000,000
that are exempt under 31 CFR 1010.970(c)
from reporting certain cash transactions to
the Treasury Department under 31 CFR
1021.310 or 1010.360. The determination
whether a casino which is granted an ex-
emption under 31 CFR 1010.970(c) will
be required to report under section 6050I
will be made on a case by case basis, con-
currently with the granting of such an ex-
emption.
* * * * *
(iv) * * *
(A) Example. A and B are casinos
having gross annual gaming revenue in
excess of $1,000,000. C is a casino with
gross annual gaming revenue of less than
$1,000,000. Casino A receives $15,000
in cash from a customer with respect to a
gaming transaction which the casino re-
ports to the Treasury Department under
31 CFR 1021.310 and 1010.360. Casino
B’s hotel division receives $15,000 in
cash from a customer in payment for ac-

Bulletin No. 2021–32 289 August 9, 2021
commodations provided to that customer
at Casino B’s hotel. Casino C receives
$15,000 in cash from a customer with
respect to a gaming transaction. Casino
A is not required to report the transaction
under section 6050I or these regulations
because the exception for certain casinos
provided in paragraph (d)(2)(i) of this
section (casino exception) applies. Casi-
no B’s hotel division is required to report
under section 6050I and these regulations
because the casino exception does not ap-
ply to the receipt of cash by a nongaming
business division. Casino C is required to
report under section 6050I and these regu-
lations because the casino exception does
not apply to casinos having gross annu-
al gaming revenue of $1,000,000 or less
which do not have to report to the Trea-
sury Department under 31 CFR 1021.310
and 1010.360.
(B) [Reserved]
* * * * *
(e) * * * (1) Time of reporting. The re-
ports required by this section must be filed
in accordance with the Form 8300 instruc-
tions and related publications by the 15th
day after the date the cash is received.
However, in the case of multiple payments
relating to a single transaction (or two or
more related transactions), see paragraph
(b) of this section.
* * * * *
(3) * * * (i) Where to file. A person
making a return of information under this
section must file Form 8300 in accordance
with the form instructions and related
publications.
* * * * *
(h) Applicability date. The rules of
this section apply for returns required to
be filed during calendar years beginning
after [Date of publication of the Treasury
decision adopting these rules as final reg-
ulations in the Federal Register].
Par. 11. Section 1.6050I-2 is amended
by revising paragraphs (c)(1)(i), (c)(3)(i),
and (f) to read as follows:
§1.6050I-2 Returns relating to cash in
excess of $10,000 received as bail by
court clerks.
* * * * *
(c) * * *
(1) * * * (i) In general. The informa-
tion return required by this section must
be filed in accordance with the Form 8300
instructions and related publications by
the 15th day after the date the cash bail is
received.
* * * * *
(3) * * * (i) Where to file. Returns re-
quired by this section must be filed in ac-
cordance with the Form 8300 instructions
and related publications. A copy of the in-
formation return required to be filed under
this section must be retained for five years
from the date of filing.
* * * * *
(f) Applicability date. The rules of this
section apply for returns required to be
filed during calendar years beginning after
[Date of publication of the Treasury deci-
sion adopting these rules as final regula-
tions in the Federal Register].
Par. 12. Section 1.6050M-1 is amended
by revising paragraphs (d)(2), (d)(3), and
(f) as follows:
§1.6050M-1 Information returns
relating to persons receiving contracts
from certain federal executive agencies.
* * * * *
(d) * * *
(2) Form of reporting—(i) General rule
concerning electronic filing. The informa-
tion returns required by this section with
respect to contracts of a federal executive
agency for each calendar quarter must be
made in one submission (or in multiple
submissions if permitted by paragraph (d)
(4) of this section). Except as provided in
paragraph (d)(2)(ii) of this section, the re-
quired returns must be made in electronic
form (within the meaning of §301.6011-
2(a)(1)) in accordance with any applicable
revenue procedure or other guidance pro-
mulgated by the Internal Revenue Service
for the filing of such returns under section
6050M.
(ii) Exceptions from electronic filing.
Any federal executive agency that, on Oc-
tober 1, has a reasonable expectation of
entering into, during the one-year period
beginning on that date, fewer than 100
contracts subject to the reporting require-
ments under this section that are to be filed
during the calendar year 2022, or fewer
than 10 contracts subject to the reporting
requirements under this section that are
to be filed during the calendar years after
2022, may make the information returns
required by this section for each quarter
of that one-year period on the prescribed
paper Form 8596 in accordance with the
instructions accompanying such form.
(iii) Undue hardship. The Commis-
sioner may grant waivers of the electron-
ic-filing requirements of this section in
cases of undue hardship. The principal
factor in determining hardship will be the
amount, if any, by which the cost of fil-
ing the return electronically in accordance
with this section exceeds the cost of filing
the return on paper. A request for a waiver
must be made in accordance with applica-
ble IRS revenue procedures, publications,
forms, instructions, or other guidance, in-
cluding postings to the IRS.gov website.
The waiver will specify the type of filing
(that is, a return required under paragraph
(a) of this section) and the period to which
it applies.
(3) Place of filing--(i) Returns in elec-
tronic form. Information returns made un-
der this section in electronic form must be
filed with the Internal Revenue Service in
accordance with any applicable revenue
procedure or other guidance promulgated
by the Internal Revenue Service relating to
the filing of returns under section 6050M.
(ii) Form 8596. Information returns
made on paper Form 8596 must be filed
with the Internal Revenue Service at the
location specified in the instructions for
that form.
* * * * *
(f) Applicability date—(1) Contracts
required to be reported. Except as other-
wise provided in this paragraph (f), this
section applies to each federal executive
agency with respect to its contracts en-
tered into on or after January 1, 1989 (in-
cluding any increase in amount obligated
on or after January 1, 1989, that is treated
as a new contract under paragraph (e) of
this section).
(2) Contracts not required to be re-
ported. A federal executive agency is not
required to report—
(i) Any basic or initial contract entered
into before January 1, 1989,
(ii) Any increase contract action occur-
ring before January 1, 1989, that is treated
as a new contract under paragraph (e) of
this section, or
(iii) Any increase contract action that is
treated as a new contract under paragraph
(e) of this section if the basic or initial

August 9, 2021 290 Bulletin No. 2021–32
contract to which that contract action re-
lates was entered into before January 1,
1989, and—
(A) The increase occurs before April 1,
1990, or
(B) The amount of the increase does
not exceed $50,000.
(3) Illustration. (i) If federal execu-
tive agency enters into an initial contract
on December 1, 1988, and the amount
of money obligated under the contract is
increased by $55,000 on April 15, 1990,
then (A) there is no reporting requirement
with respect to the contract when entered
into on December 1, 1988, and (B) the
April 15, 1990, increase, which is treat-
ed as a new contract under paragraph (e)
of this section, is subject to the reporting
requirements of this section because it is
considered to be a new contract entered
into on April 15, 1990.
(ii) If the $55,000 increase had oc-
curred before April 1, 1990, there would
have been no reporting requirement with
respect to that increase.
(4) Filing requirements for contracts
required to be reported. The amendments
to paragraphs (d)(2) and (d)(3) of this sec-
tion apply for information returns required
to be filed during calendar years beginning
after [Date of publication of the Treasury
decision adopting these rules as final reg-
ulations in the Federal Register].
PART 53—FOUNDATION AND
SIMILAR EXCISE TAXES
Par. 13. The authority citation for part
53 is amended by adding the following
entry:
Authority: 26 U.S.C. 7805 * * *
Section 53.6011-1 also issued under 26
U.S.C. 6011.
* * * * *
Par. 14. Section 53.6011-1 is amended
by:
1. Removing paragraph (c).
2. Redesignating paragraphs (d) and (e)
as paragraphs (c) and (d), respective-
ly.
3. Adding a new paragraph (e).
The addition reads as follows:
§53.6011-1 General requirement of
return, statement or list.
* * * * *
(e) Applicability Date. The rules of this
section apply for any returns required to
be filed under this section on or after Jan-
uary 11, 2021.
PART 54—PENSION EXCISE TAXES
Par. 15. The authority citation for part
54 is amended by adding the following
entry:
Authority: 26 U.S.C. 7805 * * *
Section 54.6011-3 also issued under 26
U.S.C. 6011.
* * * * *
Par. 16. Section 54.6011-3 is added to
read as follows:
§54.6011-3 Required use of electronic
form for the filing requirements for the
return for certain excise taxes related
to employee benefit plans.
(a) Excise tax returns required in elec-
tronic form. Any employer or individual
required to file an excise tax return on
Form 5330, Return of Excise Taxes Re-
lated to Employee Benefit Plans, under
§54.6011-1 of this chapter must file the
excise tax return electronically if the filer
is required by the Internal Revenue Code
or regulations to file at least 10 returns of
any type during the calendar year that the
Form 5330 is due. The Commissioner may
direct the type of electronic filing and may
also exempt certain returns from the elec-
tronic filing requirements of this section
through revenue procedures, publications,
forms, instructions, or other guidance, in-
cluding postings on the IRS.gov website.
Returns filed electronically must be made
in accordance with the applicable revenue
procedures, publications, forms, instruc-
tions, or other guidance.
(b) Undue hardship. The Commission-
er may grant waivers of the requirements
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the return on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return required
under §54.6011-1) and the period to which
it applies.
(c) Failure to file. If a filer required to
file the Form 5330 fails to file the report
electronically when required to do so by
this section, the filer is deemed to have
failed to file the report. See generally sec-
tion 6651(a)(1) for the penalty for the fail-
ure to file a tax return or to pay tax. For
general rules relating to the failure to file
tax return or to pay tax, see the regulations
under 26 CFR 301.6651 (Regulations on
Procedure and Administration).
(d) Meaning of terms. The following
definitions apply for purposes of this sec-
tion:
(1) Magnetic media or electronic form.
The terms magnetic media or electronic
form mean any media or form permitted
under applicable regulations, revenue pro-
cedures, or publications. These generally
include electronic filing, as well as mag-
netic tape, tape cartridge, diskette, and
other media specifically permitted under
the applicable regulations, procedures,
publications, forms, instructions, or other
guidance.
(2) Calculating the number of returns a
filer is required to file--(i) In general. For
purposes of this section, a filer is required
to file at least 10 returns during a calendar
year if the filer is required to file at least
10 returns of any type, including informa-
tion returns (for example, Forms W-2 and
Forms 1099), income tax returns, employ-
ment tax returns, and excise tax returns.
(ii) Definition of filer. For purposes of
this section, the term filer means the per-
son required to report the tax on the Form
5330. For general rules on who is required
to report the tax on the Form 5330, see the
Instructions to the Form 5330.
(e) Example. The following example
illustrates the provisions of paragraph (d)
(2) of this section:
(1) In 2022, Employer A (the plan sponsor and
plan administrator of Plan B) is required to file
Form 5330 for its nondeductible contribution under
section 4972 to Plan B. During the 2023 calendar
year, Employer A is required to file 20 returns (in-
cluding 19 Forms 1099-R Distributions From Pen-
sions, Annuities, Retirement, Profit-Sharing Plans,
IRAs, Insurance Contracts, etc. and one Form 5500
series Annual Return/Report of the Employee Ben-
efit Plan). Plan B’s plan year is the calendar year.
Because Employer A is required to file at least 10
returns during the 2023 calendar year, Employer A
must file the 2022 Form 5330 for Plan B electron-
ically.

Bulletin No. 2021–32 291 August 9, 2021
(2) [Reserved]
(f) Applicability date. The rules of this
section apply for any Form 5330 required
to be filed for taxable years ending on or
after [Date of publication of the Treasury
decision adopting these rules as final reg-
ulations in the Federal Register].
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 17. The authority citation for part
301 is amended by adding entries in nu-
merical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 301.6011-10 also issued under
26 U.S.C. 6011.
Section 301.6011-11 also issued under
26 U.S.C. 6011.
Section 301.6011-12 also issued under
26. U.S.C. 6011.
Section 301.6011-13 also issued under
26 U.S.C. 6011.
Section 301.6011-14 also issued under
26 U.S.C. 6011.
Section 301.6011-15 also issued under
26 U.S.C. 6011.
Section 301.6012-2 also issued under
26 U.S.C. 6012.
* * * * *
Section 301.6057-3 also issued under
26 U.S.C. 6011 and 6057.
Section 301.6058-2 also issued under
26 U.S.C. 6011 and 6058.
Section 301.6059-2 also issued under
26 U.S.C. 6011 and 6059.
* * * * *
Section 301.6721-1 also issued under
26 U.S.C. 6011 and 6721.
* * * * *
Par. 18. Section 301.1474-1 is amend-
ed by:
1. Revising the section heading.
2. Revising paragraphs (a) through (c).
3. Revising paragraph (d)(1).
4. Adding a sentence at the end of para-
graph (e).
The revisions and addition read as fol-
lows:
§301.1474-1 Required use of electronic
form for financial institutions filing
Form 1042, Form 1042-S, or Form
8966.
(a) Financial institutions filing certain
returns. If a financial institution is required
to file a Form 1042, Annual Withholding
Tax Return for U.S. Source Income of For-
eign Persons, (or successor form) under
§1.1474-1(c) of this chapter, the financial
institution must file the return informa-
tion required by the applicable forms and
schedules electronically. If a financial in-
stitution is required to file a Form 1042-S,
Foreign Person’s U.S. Source Income Sub-
ject to Withholding, (or such other form as
the IRS may prescribe) under §1.1474-
1(d) of this chapter, the financial insti-
tution must file the information required
by the applicable forms and schedules
electronically. Additionally, if a financial
institution is required to file Form 8966,
“FATCA Report,” (or such other form as
the IRS may prescribe) to report certain
information about U.S. accounts, sub-
stantial U.S. owners of foreign entities, or
owner-documented FFIs as required under
this chapter, the financial institution must
file the required information in electronic
form. Returns filed electronically must be
made in accordance with applicable regu-
lations, revenue procedures, publications,
forms, instructions, and the IRS.gov Inter-
net site. In prescribing regulations, reve-
nue procedures, publications, forms, and
instructions, including those on the IRS.
gov Internet site, the Commissioner may
direct the type of electronic filing.
(b) Undue hardship. The Commission-
er may grant waivers of the requirements
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the return on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return required
under §1.1474-1(c) or (d) of this chapter,
or a Form 8966) and the period to which
it applies.
(c) Failure to file. If a financial insti-
tution fails to file a Form 1042 electroni-
cally when required to do so by this sec-
tion, the financial institution is deemed to
have failed to file the return. (See section
6651 for the addition to tax for failure
to file a return). In determining whether
there is reasonable cause for failure to
file the return, §301.6651-1(c) and rules
similar to the rules in §301.6724-1(c)(3)
(undue economic hardship related to fil-
ing information returns electronically)
will apply. If a financial institution fails to
file a Form 1042-S or a Form 8966 elec-
tronically when required to do so by this
section, the financial institution is deemed
to have failed to comply with the informa-
tion reporting requirements under section
6721 of the Code. See section 6724(c)
for failure to meet magnetic media re-
quirements. In determining whether there
is reasonable cause for failure to file the
return, §301.6651-1(c) and rules similar
to the rules in §301.6724-1(c)(3) (undue
economic hardship related to filing infor-
mation returns on magnetic media) will
apply.
(d) * * * (1) Magnetic media or elec-
tronic form. The terms magnetic media or
electronic form mean any media or form
permitted under applicable regulations,
revenue procedures, or publications.
These generally include electronic filing,
as well as magnetic tape, tape cartridge,
diskette, and other media specifically per-
mitted under the applicable regulations,
procedures, publications, forms, instruc-
tions, or other guidance.
* * * * *
(e) * * * This section applies to any
Form 1042 (or successor form) filed
during calendar years beginning after
[Date of publication of the Treasury deci-
sion adopting these rules as final regula-
tions in the Federal Register].
Par. 19. Section 301.6011-2 is amended
by:
1. Revising paragraphs (a)(1).
2. Revising paragraph (b).
3. Revising the heading of paragraph (c)
and paragraph (c)(1).
4. Redesignating paragraph (c)(2) as (c)
(6) and adding new paragraphs (c)(2)
through (5).
5. Revising newly redesignated para-
graphs (c)(6)(i) and (ii).
6. Revising paragraph (g).
The revisions and additions read as fol-
lows:
§301.6011-2 Required use of electronic
form.
(a) * * * (1) Magnetic media or elec-
tronic form. The terms magnetic media or

August 9, 2021 292 Bulletin No. 2021–32
electronic form mean any media or form
permitted under applicable regulations,
revenue procedures or publications, or,
in the case of returns filed with the Social
Security Administration, Social Security
Administration publications. These gen-
erally include electronic filing, as well
as magnetic tape, tape cartridge, diskette,
and other media specifically permitted un-
der the applicable regulations, procedures,
or publications.
* * * * *
(b) Returns required electronically. (1)
If the use of Form 1042–S, Form 1094 se-
ries, Form 1095–B, Form 1095–C, Form
1097-BTC, Form 1098, Form 1098-C,
Form 1098–E, Form 1098-Q, Form 1098–
T, Form 1099 series, Form 3921, Form
3922, Form 5498 series, Form 8027,
Form W–2G, or other forms prescribed
under paragraph (b)(4) of this section
treated as forms specified in this para-
graph (b)(1) is required by the applicable
regulations or revenue procedures for the
purpose of making an information return,
the information required by the form must
be submitted electronically, except as oth-
erwise provided in paragraph (c) of this
section. Returns filed electronically must
be made in accordance with applicable
revenue procedures, publications, forms,
or instructions.
(2) If the use of Form W–2 (Wage and
Tax Statement), Form 499R–2/W–2PR
(Withholding Statement (Puerto Rico)),
Form W–2VI (U.S. Virgin Islands Wage
and Tax Statement), Form W–2GU (Guam
Wage and Tax Statement), Form W–2AS
(American Samoa Wage and Tax State-
ment), or other forms prescribed under
paragraph (b)(4) of this section as treated
as forms specified in this paragraph (b)
(2) is required for the purpose of making
an information return, the information
required by the form must be submitted
electronically, except as otherwise provid-
ed in paragraph (c) of this section. Returns
described in this paragraph (b)(2) must be
made in accordance with applicable So-
cial Security Administration procedures
or publications (which may be obtained
from the local office of the Social Security
Administration).
(3) If a person is required to make a
return for the purpose of section 6050I,
and such person is required to file returns
described in paragraphs (b)(1) and (2) of
this section electronically, then such per-
son must also file the information required
by section 6050I on Form 8300 electron-
ically. Returns described in this para-
graph (b)(3) must be made in accordance
with applicable IRS revenue procedures,
publications, forms, instructions, or other
guidance, including postings to the IRS.
gov website.
(4) The Commissioner may prescribe
by revenue procedure that additional
forms are treated, for purposes of this sec-
tion, as forms specified in paragraphs (b)
(1) or (2) of this section. In addition, the
Commissioner may exempt certain re-
turns from the electronic requirements of
this section through revenue procedures,
publications, forms, instructions, or other
guidance, including postings to the IRS.
gov website.
(c) Applicable number-threshold--(1)
In general. No person is required to file
information returns electronically in a cal-
endar year unless the person is required
to file at least the applicable number of
returns during that calendar year. Persons
required to file fewer than the applicable
number of returns during the calendar year
may make the returns on the prescribed
paper form or, alternatively, electronically
in accordance with paragraph (b) of this
section.
(2) Machine-readable forms. Returns
made on a paper form under paragraph (c)
(1) of this section must be machine-read-
able, as described in paragraph (a)(2) of
this section, if applicable revenue proce-
dures provide for a machine-readable pa-
per form.
(3) Calculating the applicable num-
ber--(i) In general. For purposes of para-
graph (c)(1) of this section, the applicable
number is 100, for returns required to be
filed during calendar year 2022, and 10,
for returns required to be filed during cal-
endar years after 2022.
(ii) Special rule for partnerships. Not-
withstanding paragraph (c)(3)(i) of this
section, a partnership with more than
100 partners is required to file its informa-
tion returns covered under paragraph (b)
of this section electronically.
(4) Calculating the number of returns-
-(i) Aggregation of returns. In calculat-
ing whether a person is required to file
at least the applicable number of returns
under paragraph (c)(3) of this section,
all the information returns described in
paragraphs (b)(1) and (b)(2) of this sec-
tion required to be filed during the cal-
endar year, are counted in the aggregate.
Corrected information returns and infor-
mation returns described in paragraph
(b)(3) of this section are not taken into
account in calculating whether a person
is required to file at least the applicable
number of returns.
(ii) Corrected returns. (A) If an orig-
inal information return covered by para-
graph (b) of this section is required to be
filed electronically, any corrected infor-
mation return corresponding to that origi-
nal return must also be filed electronically.
(B) If an original information return is
permitted to be filed on paper and is filed
on paper, any corrected information return
corresponding to that original return must
be filed on paper.
(5) Examples. The provisions of para-
graphs (c)(3) and (4) of this section are
illustrated by the following examples:
(i) Example 1. During the 2023 calendar year,
Company W, is required to file 5 Forms 1099-INT,
Interest Income, and 5 Forms 1099-DIV, Dividends
and Distributions, for a total of 10 returns covered by
paragraph (b) of this section. The applicable number
for returns required to be filed during calendar year
2023 is 10. Because Company W is required to file
the applicable number of returns covered by para-
graph (c)(3) of this section during the 2023 calendar
year, Company W must file all its 2022 Forms 1099-
INT and Forms 1099-DIV electronically.
(ii) Example 2. Same facts as paragraph (c)(5)(i)
of this section (Example 1), except after electroni-
cally filing its 10 Forms 1099-DIV and 1099-INT,
Company W files 2 corrected Forms 1099-DIV and
4 corrected Forms 1099-INT. Because Company W
electronically filed its original 2022 Forms 1099-
DIV and 1099-INT, Company W must electronically
file its corrected 2022 Forms 1099-DIV and 1099-
INT.
(iii) Example 3. Same facts as paragraph (c)(5)(i)
of this section (Example 1), except on May 16, 2023,
Company W received cash in excess of $10,000 and
must file a Form 8300 by May 31, 2023. Because
Company W is required to file information returns
covered under paragraphs (b)(1) and (2) of this sec-
tion electronically during the 2023 calendar year,
Company W must also file all its Forms 8300 elec-
tronically during the 2023 calendar year.
(iv) Example 4. Same facts as paragraph (c)(5)
(i) of this section (Example 1), except Company W
is not required to file any Forms 1099-INT during
calendar year 2023. On December 19, 2022, Com-
pany W receives cash in excess of $10,000 and must
file a Form 8300 by January 3, 2023. Because Com-
pany W is not required to file information returns
covered under paragraphs (b)(1) and (b)(2) of this
section electronically during the 2023 calendar year,
Company W is not required to file this Form 8300
electronically.

Bulletin No. 2021–32 293 August 9, 2021
(v) Example 5. During the 2023 calendar year,
Partnership P, a partnership with 15 partners, is re-
quired to file 8 Forms 1099-MISC, Miscellaneous
Income, and 5 Forms 1099-INT. The applicable
number of returns required to be filed by partnerships
during calendar year 2023 is 10. Because Partnership
P is required to file at least the applicable number
of returns covered by paragraph (b) of this section
during the 2023 calendar year, Partnership P must
electronically file all its 2022 Forms 1099-MISC and
1099-INT.
(6) * * *
(i) The Commissioner may grant waiv-
ers of the requirements of this section in
cases of undue hardship. The principal
factor in determining hardship will be the
amount, if any, by which the cost of fil-
ing the return electronically in accordance
with this section exceeds the cost of fil-
ing the return on paper. Notwithstanding
the foregoing, if an employer is required
to make a final return on Form 941, or a
variation thereof, and expedited filing
of Forms W-2, Forms 499R-2/W-2PR,
Forms W-2VI, Forms W-2GU, or Form
W-2AS is required, the unavailability
of the specifications for electronic filing
will be treated as creating a hardship (see
§31.6071(a)-1(a)(3)(ii) of this chapter).
A request for a waiver must be made in
accordance with applicable IRS revenue
procedures, publications, forms, instruc-
tions, or other guidance, including post-
ings to the IRS.gov website. The waiver
will specify the type of filing (that is, a
return required under paragraph (b) of this
section) and the period to which it applies.
(ii) The Commissioner may supple-
ment the provisions of paragraph (c)(6)
(i) of this section through revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings on the
IRS.gov website.
* * * * *
(g) Applicability date. The rules of this
section apply for information returns re-
quired to be filed during calendar years
beginning after [Date of publication of the
Treasury decision adopting these rules as
final regulations in the Federal Register].
Par. 20. Section 301.6011-3 is amended
by:
1. Revising the section heading.
2. Revising paragraphs (a), (b), and (d)
(1).
3. Redesignating paragraph (d)(5) as (d)
(6) and adding new paragraph (d)(5).
4. Revising newly redesignated para-
graph (d)(6).
5. Revising paragraphs (e) and (f).
The revisions and addition read as fol-
lows:
§301.6011-3 Required use of electronic
form for partnership returns.
(a) Partnership returns required elec-
tronically. (1) Except as otherwise pro-
vided in paragraph (b) of this section, a
partnership required to file a partnership
return pursuant to §1.6031(a)-1 of this
chapter, must file the information required
by the applicable forms and schedules
electronically, if:
(i) the partnership is required by the In-
ternal Revenue Code or regulations to file
at least 10 returns (as described in para-
graph (d)(5) of this section) during the
calendar year, or
(ii) the partnership has more than 100
partners during the partnership’s taxable
year.
(2) The Commissioner may direct the
type of electronic filing and may also ex-
empt certain returns from the electronic
requirements of this section through rev-
enue procedures, publications, forms, in-
structions, or other guidance, including
postings on the IRS.gov website. Returns
filed electronically must be made in accor-
dance with the applicable revenue proce-
dures, publications, forms, instructions, or
other guidance.
(b) Undue hardship. The Commission-
er may grant waivers of the requirements
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the return on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return required
under §1.6031(a)-1 of this chapter) and
the period to which it applies.
* * * * *
(d) * * * (1) Magnetic media or elec-
tronic form. The terms magnetic media or
electronic form mean any media or form
permitted under applicable regulations,
revenue procedures, or publications.
These generally include electronic filing,
as well as magnetic tape, tape cartridge,
diskette, and other media specifically per-
mitted under the applicable regulations,
procedures, publications, forms, instruc-
tions, or other guidance.
* * * * *
(5) Calculating the number of returns.
For purposes of this section, a partnership
is required to file at least 10 returns if,
during the calendar year ending with or
within the taxable year of the partnership,
the partnership is required to file at least
10 returns of any type, including income
tax returns, employment tax returns, ex-
cise tax returns, and information returns
(for example, Forms W-2 and Forms 1099,
but not including schedules required to be
included with a partnership return). In the
case of a short-period return, a partnership
is required to file at least the applicable
number of returns if, during the calendar
year in which the partnership’s short tax-
able year ends, the partnership is required
to file at least the applicable number of
returns of any type, including informa-
tion returns (for example, Forms W-2 and
Forms 1099, but not including schedules
required to be included with a partnership
return), income tax returns, employment
tax returns, and excise tax returns.
(6) Partnerships with more than 100
partners. A partnership has more than
100 partners if, over the course of the
partnership’s taxable year, the partnership
had more than 100 partners, regardless of
whether a partner was a partner for the
entire year or whether the partnership had
over 100 partners on any particular day in
the year. For purposes of this paragraph
(d)(6), however, only those persons hav-
ing a direct interest in the partnership must
be considered partners for purposes of de-
termining the number of partners during
the partnership’s taxable year.
(e) Examples. The following examples
illustrate the provisions of this section. In
the examples, the partnerships’ taxable
year is the calendar year 2023 and the
partnerships had fewer than 10 returns
required to be filed during calendar year
2023:
(1) Example 1. Partnership P had five general
partners and 90 limited partners on January 1, 2023.
On March 15, 2023, 10 more limited partners ac-
quired an interest in P. On September 29, 2023, the
10 newest partners sold their individual partnership
interests to C, a corporation which was one of the
original 90 limited partners. On December 31, 2023,

August 9, 2021 294 Bulletin No. 2021–32
P had the same five general partners and 90 limited
partners it had on January 1, 2023. P had a total of
105 partners over the course of partnership taxable
year 2023. Therefore, P must file its 2023 partnership
return electronically.
(2) Example 2. Partnership Q is a general part-
nership that had 95 partners on January 1, 2023. On
March 15, 2023, 10 partners sold their individual
partnership interests to corporation D, which was not
previously a partner in Q. On September 29, 2023,
corporation D sold one-half of its partnership inter-
est in equal shares to five individuals, who were not
previously partners in Q. On December 31, 2023, Q
had a total of 91 partners, and on no date in 2023 did
Q have more than 100 partners. Over the course of
the year, however, Q had 101 partners. Therefore, Q
must file its 2023 partnership return electronically.
(3) Example 3. Partnership G is a general part-
nership with 100 partners on January 1, 2023. There
are no new partners added to G in 2023. One of G’s
partners, A, is a partnership with 53 partners. A is one
partner, regardless of the number of partners A has.
Therefore, G has 100 partners and is not required to
file its 2023 partnership return electronically.
(4) Example 4. Same facts as paragraph (e)(3) of
this section (Example 3), except partnership G is also
required to file 9 Forms 1099-MISC during calendar
year 2023 in addition to its 2022 partnership return.
Because partnership G is required to file at least 10
returns of any type during calendar year 2023, part-
nership G must file its 2023 partnership return elec-
tronically.
(f) Applicability date. The rules of this
section apply for partnership returns re-
quired to be filed during calendar years
beginning after [Date of publication of the
Treasury decision adopting these rules as
final regulations in the Federal Register].
Par. 21. Section 301.6011-5 is amended
by revising paragraphs (a), (b), (d)(1) and
(5), (e), and (f) to read as follows:
§301.6011-5 Required use of electronic
form for corporate income tax returns.
(a) Corporate income tax returns re-
quired electronically. (1) A corporation
required to file a corporate income tax
return on Form 1120, U.S. Corporation
Income Tax Return, under §1.6012-2 of
this chapter must file its corporate income
tax return electronically if the corporation
is required by the Internal Revenue Code
or regulations to file at least 10 returns (as
defined in paragraph (d)(5) of this section)
during the calendar year ending with or
within the taxable year of the corporation.
(2) All members of a controlled group
of corporations must file their corporate
income tax returns electronically if the
aggregate number of returns required to
be filed by the controlled group of corpo-
rations is at least 10 (as defined in para-
graph (d)(5) of this section) during the
calendar year ending with or within the
taxable year of the controlled group of
corporations.
(3) The Commissioner may direct the
type of electronic filing and may also ex-
empt certain returns from the electronic
requirements of this section through rev-
enue procedures, publications, forms, in-
structions, or other guidance, including
postings on the IRS.gov website. Returns
filed electronically must be made in accor-
dance with the applicable revenue proce-
dures, publications, forms, instructions, or
other guidance.
(b) Undue hardship. The Commission-
er may grant waivers of the requirements
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the return on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return required
under §1.6012-2 of this chapter) and the
period to which it applies.
* * * * *
(d) * * * (1) Magnetic media or elec-
tronic form. The terms magnetic media or
electronic form mean any media or form
permitted under applicable regulations,
revenue procedures, or publications.
These generally include electronic filing,
as well as magnetic tape, tape cartridge,
diskette, and other media specifically per-
mitted under the applicable regulations,
procedures, publications, forms, instruc-
tions, or other guidance.
* * * * *
(5) Calculating the number of returns.
For purposes of this section, a corpora-
tion or controlled group of corporations
is required to file at least 10 returns if,
during the calendar year ending with or
within the taxable year of the corporation
or the controlled group, the corporation
or the controlled group is required to file
at least 10 returns of any type, including
information returns (for example, Forms
W-2 and Forms 1099), income tax returns,
employment tax returns, and excise tax re-
turns. In the case of a short-period return,
a corporation is required to file at least
10 returns if, during the calendar year in
which the corporation’s short taxable year
ends, the corporation is required to file
at least 10 returns of any type, including
information returns (for example, Forms
W-2 and Forms 1099), income tax returns,
employment tax returns, and excise tax re-
turns. If the corporation is a member of a
controlled group, calculating the number
of returns the corporation is required to
file includes all returns required to be filed
by all members of the controlled group
during the calendar year ending with or
within the taxable year of the controlled
group.
(e) Example. The following example
illustrates the provisions of this section:
(1) The taxable year of Corporation X, a fis-
cal-year taxpayer, ends on September 30. During
the calendar year ending December 31, 2022, X was
required to file one Form 1120, U.S. Corporation
Income Tax Return, 6 Forms W-2, Wage and Tax
Statement, 3 Forms 1099-DIV, Dividends and Distri-
butions, one Form 940, Employer’s Annual Federal
Unemployment (FUTA) Tax Return, and four Forms
941, Employer’s Quarterly Federal Tax Return.
Because X is required to file 10 returns of any type
during calendar year 2022, the calendar year that
ended within its taxable year ending September 30,
2023, X is required to file its Form 1120 electroni-
cally for its taxable year ending September 30, 2023.
(2) [Reserved]
(f) Applicability date. The rules of this
section apply for corporate income tax re-
turns required to be filed during calendar
years beginning after [Date of publication
of the Treasury decision adopting these
rules as final regulations in the Federal
Register].
Par. 22. Section 301.6011-10 is added
to read as follows:
§301.6011-10 Certain organizations,
including trusts, required to file
unrelated business income tax returns
in electronic form.
(a) Unrelated business income tax re-
turns required in electronic form. (1) Or-
ganizations, including trusts, subject to tax
under section 511 that are required to file a
return under §1.6012-2(e) or 1.6012-3(a)
(5) of this chapter to report gross income
included in computing unrelated busi-
ness taxable income, as defined in section
512, or that are otherwise required to file
Form 990-T, Exempt Organization Busi-

Bulletin No. 2021–32 295 August 9, 2021
ness Income Tax Return (and proxy tax
under section 6033(e)), are required to file
that return in electronic form.
(2) Returns filed in electronic form
must be filed in accordance with appli-
cable revenue procedures, publications,
forms, instructions, or other guidance.
(b) Failure to file. If an organization or
trust fails to file an unrelated business in-
come tax return in electronic form when
required to do so by this section, the orga-
nization or trust is deemed to have failed
to file the return. (See section 6651 for the
addition to tax for failure to file a return.)
In determining whether there is reason-
able cause for failure to file the return,
§301.6651-1(c) will apply.
(c) Applicability date. The rules of
this section apply for unrelated business
income tax returns required to be filed
during calendar years beginning after [the
date of publication of the Treasury deci-
sion adopting these rules as final regula-
tions in the Federal Register].
Par. 23. Section 301.6011-11 is added
to read as follows:
§301.6011-11 Required use of electronic
form for certain returns for tax-
advantaged bonds.
(a) Return for credit payments to issu-
ers of qualified bonds. (1) An issuer of a
qualified bond required to file a return for
credit payments on Form 8038-CP, Return
for Credit Payments to Issuers of Quali-
fied Bonds, must file its return electroni-
cally if the issuer is required to file at least
10 returns (as defined in paragraph (d)(4)
of this section) during the calendar year.
(2) Returns filed electronically must be
made in accordance with applicable rev-
enue procedures, publications, forms, in-
structions, or other guidance.
(3) The Commissioner may provide
an exemption from the electronic require-
ments of paragraph (a) of this section
through revenue procedures, publications,
forms, instructions, or other guidance.
(b) Other returns for tax-advantaged
bonds. The Commissioner may prescribe
by revenue procedure that additional
forms for tax-advantaged bonds (as de-
fined in §1.150-1(b) of this chapter) re-
quired under the Internal Revenue Code,
regulations, or other administrative guid-
ance published by the Internal Revenue
Service must be filed electronically if the
issuer is required to file at least 10 returns
during the calendar year.
(c) Undue hardship. The Commission-
er may grant waivers of the requirements
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the return on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return for credit
payments on Form 8038-CP) and the peri-
od to which it applies.
(d) Meaning of terms. The following
definitions apply for purposes of this sec-
tion:
(1) Magnetic media or electronic form.
The terms magnetic media or electronic
form mean any media or form permitted
under applicable regulations, revenue pro-
cedures, or publications. These generally
include electronic filing, as well as mag-
netic tape, tape cartridge, diskette, and
other media specifically permitted under
the applicable regulations, procedures,
publications, forms, instructions, or other
guidance.
(2) Qualified bond. The term qualified
bond means a tax-advantaged bond that is
a taxable bond that provides a refundable
federal tax credit payable directly to the
issuer of the bond under former section
6431 or any other tax-advantaged bond (as
defined in §1.150-1(b) of this chapter) that
provides a tax credit payment to issuers of
such bonds similar to the credit provided
with respect to interest on qualified bonds.
(3) Return for credit payments to is-
suers of qualified bonds. The term return
for credit payments to issuers of qualified
bonds means a Form 8038-CP, Return for
Credit Payments to Issuers of Qualified
Bonds or such other form prescribed by
the Commissioner for the purpose of filing
a return for credit payment with respect to
a qualified bond.
(4) Calculating the number of returns.
For purposes of this section, an issuer of
a tax-advantaged bond is required to file
at least 10 returns if, during the calendar
year, the issuer is required to file at least
10 returns of any type, including infor-
mation returns (for example, Forms W-2
and Forms 1099), income tax returns,
employment tax returns, and excise tax
returns.
(e) Applicability date. The rules of this
section apply for tax-advantaged bond
returns required to be filed after the later
of December 31, 2021 or [Date of publi-
cation of the Treasury decision adopting
these rules as final regulations in the Fed-
eral Register].
Par. 24. Section 301.6011-12 is added
to read as follows:
§301.6011-12 Required use of
electronic form for returns of certain
excise taxes under Chapters 41 and 42
of the Internal Revenue Code.
(a) Excise tax returns required electron-
ically. (1) Any person required to file an
excise tax return on Form 4720, Return of
Certain Excise Taxes Under Chapters 41
and 42 of the Internal Revenue Code, un-
der §53.6011-1 of this chapter must file
its excise tax return electronically if the
person is required by the Internal Revenue
Code or regulations to file at least 10 re-
turns (as defined in paragraph (d)(3) of
this section) during calendar years after
2021.
(2) The Commissioner may direct the
type of electronic filing and may also ex-
empt certain returns from the electronic
requirements of this section through rev-
enue procedures, publications, forms, in-
structions, or other guidance, including
postings on the IRS.gov website. Returns
filed electronically must be made in accor-
dance with the applicable revenue proce-
dures, publications, forms, instructions, or
other guidance.
(3) Paragraph (a)(1) of this section is
not applicable to private foundations that
are subject to the filing requirements of
§301.6033-4.
(b) Undue hardship. The Commission-
er may grant waivers of the requirements
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the return on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-

August 9, 2021 296 Bulletin No. 2021–32
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return required
under §53.6011-1 of this chapter) and the
period to which it applies.
(c) Failure to file. If a person fails to
file an excise tax return electronically
when required to do so by this section, the
person is deemed to have failed to file the
return. (See section 6651 for the addition
to tax for failure to file a return). In deter-
mining whether there is reasonable cause
for failure to file the return, §301.6651-
1(c) and rules similar to the rules in
§301.6724-1(c)(3) (undue economic hard-
ship related to filing information returns
electronically) will apply.
(d) Meaning of terms. The following
definitions apply for purposes of this sec-
tion:
(1) Magnetic media or electronic form.
The terms magnetic media or electronic
form mean any media or form permitted
under applicable regulations, revenue pro-
cedures, or publications. These generally
include electronic filing, as well as mag-
netic tape, tape cartridge, diskette, and
other media specifically permitted under
the applicable regulations, procedures,
publications, forms, instructions, or other
guidance.
(2) Excise tax return. The term excise
tax return means a Form 4720, Return
of Certain Excise Taxes Under Chapters
41 and 42 of the Internal Revenue Code,
along with all other related forms, sched-
ules, and statements that are required to
be attached to the Form 4720, including
amended and superseding returns.
(3) Calculating the number of returns.
For purposes of this section, a person is
required to file at least 10 returns if, during
the calendar year ending with or within
the person’s taxable year, the person is
required to file at least 10 returns of any
type, including information returns (for
example, Forms W-2 and Forms 1099),
income tax returns, employment tax re-
turns, and excise tax returns. In the case of
a short-period return, a person is required
to file at least 10 returns if, during the
calendar year in which the person’s short
taxable year ends, the person is required
to file at least 10 returns of any type, in-
cluding information returns (for example,
Forms W-2 and Forms 1099), income tax
returns, employment tax returns, and ex-
cise tax returns.
(e) Example. The following example
illustrates the provisions of this section:
(1) During the calendar year ending December
31, 2022, Trust X was required to file one Form
4720, Return of Certain Excise Taxes Under Chap-
ters 41 and 42 of the Internal Revenue Code, which
related to the 2021 taxable year, and 10 Forms W-2,
Wage and Tax Statement, which reported wages paid
to employees during the 2021 taxable year. Because
X is required to file 11 returns during calendar year
2022, X is required to file the 2021 Form 4720 elec-
tronically.
(2) [Reserved]
(f) Applicability date. The rules of this
section apply for excise tax returns re-
quired to be filed during calendar years
beginning after [Date of publication of the
Treasury decision adopting these rules as
final regulations in the Federal Register].
Par. 25. Section 301.6011-13 is added
to read as follows:
§301.6011-13 Required use of
electronic form for split-interest trust
returns.
(a) Split-Interest Trust returns required
electronically. (1) Any trust required to
file an information return on Form 5227,
Split-Interest Trust Information Return,
under §53.6011-1 of this chapter must
file its return electronically if the trust is
required by the Internal Revenue Code or
regulations to file at least 10 returns (as
defined in paragraph (d)(3)) of this sec-
tion) during the calendar year.
(2) The Commissioner may direct the
type of electronic filing and may also ex-
empt certain returns from the electronic
requirements of this section through rev-
enue procedures, publications, forms, in-
structions, or other guidance, including
postings on the IRS.gov website. Returns
filed electronically must be made in ac-
cordance with applicable revenue proce-
dures, publications, forms, or instructions.
(b) Undue hardship. The Commission-
er may grant waivers of the requirements
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the return on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return required
under §53.6011-1 of this chapter) and the
period to which it applies.
(c) Failure to file. If a trust fails to file
an excise tax return electronically when
required to do so by this section, the trust
is deemed to have failed to file the return.
(See section 6652 for the addition to tax
for failure to file a return). In determining
whether there is reasonable cause for fail-
ure to file the return, §301.6652-1(f) and
rules similar to the rules in §301.6724-
1(c)(3) (undue economic hardship related
to filing information returns electronical-
ly) will apply.
(d) Meaning of terms. The following
definitions apply for purposes of this sec-
tion:
(1) Magnetic media or electronic form.
The terms magnetic media or electronic
form mean any media or form permitted
under applicable regulations, revenue pro-
cedures, or publications. These generally
include electronic filing, as well as mag-
netic tape, tape cartridge, diskette, and
other media specifically permitted under
the applicable regulations, procedures,
publications, forms, instructions, or other
guidance.
(2) Split-Interest Trust return. The
term split-interest trust return means a
Form 5227, Split-Interest Trust Informa-
tion Return, along with all other related
forms, schedules, and statements that are
required to be attached to the Form 5227,
including amended and superseding re-
turns.
(3) Calculating the number of returns.
For purposes of this section, a trust is re-
quired to file at least 10 returns if, during
the calendar year ending with or within the
trust’s taxable year, the trust is required
to file at least 10 returns of any type, in-
cluding information returns (for example,
Forms W-2 and Forms 1099), income tax
returns, employment tax returns, and ex-
cise tax returns. In the case of a short-peri-
od return, a trust is required to file at least
10 returns if, during the calendar year in
which the trust’s short taxable year ends,
the trust is required to file at least 10 re-
turns of any type, including information
returns (for example, Forms W-2 and
Forms 1099), income tax returns, employ-
ment tax returns, and excise tax returns.

Bulletin No. 2021–32 297 August 9, 2021
(e) Example. The following example
illustrates the provisions of this section:
(1) During the calendar year ending December
31, 2022, Trust X was required to file one Form
5227, Split-Interest Trust Information Return, one
Form 4720, Return of Certain Excise Taxes Under
Chapters 41 and 42 of the Internal Revenue Code,
and 10 Forms 1099-DIV, Dividends and Distribu-
tions. Because X is required to file 12 returns during
the calendar year 2022, X is required to file its Form
5227 electronically for its taxable year ending De-
cember 31, 2022.
(2) [Reserved]
(f) Applicability date. The rules of this
section apply for Split-Interest Trust re-
turns required to be filed during calendar
years beginning after [Date of publication
of the Treasury decision adopting these
rules as final regulations in the Federal
Register].
Par. 26. Section 301.6011-14 is added
to read as follows:
§301.6011-14 Required use of
electronic form or other machine-
readable form for material advisor
disclosure statements.
(a) Material advisor disclosure state-
ments required electronically or in other
machine-readable form. (1) Any material
advisor required to file a return on Form
8918, Material Advisor Disclosure State-
ment, under §301.6111-3(a) of this chap-
ter must file its return electronically or in
other machine-readable form, in accor-
dance with revenue procedures, publica-
tions, forms, instructions, or other guid-
ance, including postings on the IRS.gov
website, if the material advisor is required
by the Internal Revenue Code or regula-
tions to file at least 10 returns (as defined
in paragraph (d)(3)) of this section) during
the calendar year.
(2) The Commissioner may direct the
type of electronic or other machine-read-
able form through revenue procedures,
publications, forms, instructions, or other
guidance, including postings on the IRS.
gov website. Returns filed electronically
or in other machine-readable form must
be made in accordance with applicable
revenue procedures, publications, forms,
instructions, or other guidance.
(b) Undue hardship. The Commission-
er may grant waivers of the requirements
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the return on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return required
under §301.6111-3(a) of this chapter) and
the period to which it applies.
(c) Failure to file. If a material advi-
sor fails to file Form 8918 electronically
or in other machine-readable form when
required to do so by this section, the ma-
terial advisor is deemed to have failed to
file the return. (See section 6707 for the
penalty for failure to file the return.)
(d) Meaning of terms. The following
definitions apply for purposes of this sec-
tion:
(1) Magnetic media or electronic form.
The terms magnetic media or electronic
form mean any media or form permitted
under applicable regulations, revenue pro-
cedures, or publications. These generally
include electronic filing, as well as mag-
netic tape, tape cartridge, diskette, and
other media specifically permitted under
the applicable regulations, procedures,
publications, forms, instructions, or other
guidance.
(2) Machine-readable form. The term
machine-readable form means any ma-
chine-readable form specifically permit-
ted under applicable regulations, proce-
dures, publications, forms, instructions, or
other guidance.
(3) Material advisor disclosure state-
ment. The term material advisor disclo-
sure statement means a Form 8918, Mate-
rial Advisor Disclosure Statement, along
with all other related forms, schedules, and
statements that are required to be attached
to the Form 8918, including amended ma-
terial advisor disclosure statements.
(4) Calculating the number of returns.
For purposes of this section, a material ad-
visor is required to file at least 10 returns
if, during the calendar year ending with or
within the material advisor’s taxable year,
the material advisor is required to file at
least 10 returns of any type, including
information returns (for example, Forms
W-2 and Forms 1099), income tax returns,
employment tax returns, and excise tax
returns.
(e) Example. The following example
illustrates the provisions of this section:
(1) During the calendar year ending December
31, 2022, Material Advisor X was required to file one
Form 8918, Material Advisor Disclosure Statement,
one Form 1040, U.S. Individual Income Tax Return,
and 10 Forms 1099-NEC, Nonemployee Compensa-
tion. Because Material Advisor X is required to file
12 returns during the calendar year 2022, X is re-
quired to file its Form 8918 electronically or in other
machine-readable form, in accordance with revenue
procedures, publications, forms, instructions, or
other guidance, including postings on the IRS.gov
website, during its calendar year ending December
31, 2022.
(2) [Reserved]
(f) Applicability date. The rules of this
section apply for Material Advisor Dis-
closure Statements required to be filed for
taxable years ending on or after [the date
of publication of the Treasury decision
adopting these rules as final regulations in
the Federal Register].
Par. 27. Section 301.6011-15 is added
to read as follows:
§301.6011-15 Required use of
electronic form for withholding tax
returns.
(a) Withholding tax returns required
electronically. (1) A withholding agent
required to file an income tax return on
Form 1042, Annual Withholding Tax Re-
turn for U.S. Source Income of Foreign
Persons, under §1.1461-1 of this chapter
must file its return electronically if the
withholding agent is required by the Inter-
nal Revenue Code or regulations to file at
least 10 returns (as defined in paragraph
(d)(5) of this section) during the calendar
year in which the Form 1042 is required
to be filed. Notwithstanding the previous
sentence, a withholding agent that is an
individual, estate, or trust is not required
to file its Form 1042 electronically.
(2) The Commissioner may direct the
type of electronic filing and may also ex-
empt certain returns from the electronic
requirements of this section through rev-
enue procedures, publications, forms, in-
structions, or other guidance, including
postings on the IRS.gov website. Returns
filed electronically must be made in accor-
dance with the applicable revenue proce-
dures, publications, forms, instructions, or
other guidance.
(b) Undue hardship. The Commission-
er may grant waivers of the requirements

August 9, 2021 298 Bulletin No. 2021–32
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the return on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return required
under §1.1461-1 of this chapter) and the
period to which it applies.
(c) Failure to file. If a withholding agent
fails to file a withholding agent income tax
return electronically when required to do
so by this section, the withholding agent
is deemed to have failed to file the return.
(See section 6651 for the addition to tax
for failure to file a return.) In determining
whether there is reasonable cause for fail-
ure to file the return, §301.6651-1(c) and
rules similar to the rules in §301.6724-
1(c)(3) (undue economic hardship related
to filing information returns electronical-
ly) will apply.
(d) Meaning of terms. The following
definitions apply for purposes of this sec-
tion:
(1) Magnetic media or electronic form.
The terms magnetic media or electronic
form mean any media or form permitted
under applicable regulations, revenue pro-
cedures, or publications. These generally
include electronic filing, as well as mag-
netic tape, tape cartridge, and diskette, and
other media specifically permitted under
the applicable regulations, procedures,
publications, forms, or instructions.
(2) Withholding agent. The term with-
holding agent means a withholding agent
as defined in §1.1441-7(a) of this chapter.
(3) Withholding tax return. The term
withholding tax return means a Form
1042, Annual Withholding Tax Return for
U.S. Source Income of Foreign Persons,
along with all other related forms, sched-
ules, and statements that are required to
be attached to the Form 1042, including
amended and superseding returns.
(4) Special rule for partnerships. Not-
withstanding paragraph (d)(5) of this sec-
tion, a withholding agent that is a part-
nership with more than 100 partners is
required to file a return described in para-
graph (a) of this section electronically.
(5) Calculating the number of returns.
For purposes of this section, a withholding
agent is required to file at least 10 returns
if, during the calendar year in which the
Form 1042 is required to be filed, the with-
holding agent is required to file at least 10
returns of any type, including information
returns (for example, Forms W-2, Forms
1099, Forms 1042-S), income tax returns
(for example, Form 1042), employment
tax returns, and excise tax returns.
(e) Special rule for returns filed by fi-
nancial institutions. For rules that require
withholding agents that are financial in-
stitutions to file returns electronically, see
§301.1474-1.
(f) Applicability date. The rules of this
section apply to withholding tax returns
required to be filed for taxable years end-
ing on or after [Date of publication of the
Treasury decision adopting these rules
as final regulations in the Federal Reg-
ister].
Par. 28. Section 301.6012-2 is added to
read as follows:
§301.6012-2 Required use of electronic
form for income tax returns of certain
political organizations.
(a) Income tax returns of certain polit-
ical organizations required electronically.
(1) Any organization required to file an
income tax return on Form 1120-POL,
U.S. Income Tax Return for Certain Po-
litical Organizations, under §1.6012-6 of
this chapter must file its income tax return,
along with all other related forms, sched-
ules, and statements that are required to be
attached to the Form 1120-POL, including
amended and superseding returns, elec-
tronically if the organization is required
by the Internal Revenue Code or regula-
tions to file at least 10 returns of any type
(as defined in paragraph (d)(2)) during the
calendar year.
(2) The Commissioner may direct the
type of electronic filing and may also ex-
empt certain returns from the electronic
requirements of this section through rev-
enue procedures, publications, forms, in-
structions, or other guidance, including
postings on the IRS.gov website. Returns
filed electronically must be made in accor-
dance with the applicable revenue proce-
dures, publications, forms, instructions, or
other guidance.
(b) Undue hardship. The Commission-
er may grant waivers of the requirements
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the return on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return required
under §1.6012-6 of this chapter) and the
period to which it applies.
(c) Failure to file. If an organization
fails to file an income tax return electron-
ically when required to do so by this sec-
tion, the organization is deemed to have
failed to file the return. (See section 6651
for the addition to tax for failure to file
a return.) In determining whether there
is reasonable cause for failure to file the
return, §301.6651-1(c) and rules similar
to the rules in §301.6724-1(c)(3) (undue
economic hardship related to filing infor-
mation returns electronically) will apply.
(d) Meaning of terms. The following
definitions apply for purposes of this sec-
tion:
(1) Magnetic media or electronic form.
The terms magnetic media or electronic
form mean any media or form permitted
under applicable regulations, revenue pro-
cedures, or publications. These generally
include electronic filing, as well as mag-
netic tape, tape cartridge, diskette, and
other media specifically permitted under
the applicable regulations, procedures,
publications, forms, instructions, or other
guidance.
(2) Income tax return for certain po-
litical organizations. The term income
tax return for certain political organi-
zations means a Form 1120-POL, U.S.
Income Tax Return for Certain Political
Organizations, along with all other related
forms, schedules, and statements that are
required to be attached to the Form 1120-
POL, including amended and superseding
returns..
(3) Calculating the number of returns.
For purposes of this section, an organiza-
tion is required to file at least 10 returns
if, during the calendar year ending with
or within the organization’s taxable year,

Bulletin No. 2021–32 299 August 9, 2021
the organization is required to file at least
10 returns of any type, including informa-
tion returns (for example, Forms W-2 and
Forms 1099), income tax returns, employ-
ment tax returns, and excise tax returns. In
the case of a short-period return, an orga-
nization is required to file at least 10 re-
turns if, during the calendar year in which
the organization’s short taxable year ends,
the organization is required to file at least
10 returns of any type, including informa-
tion returns (for example, Forms W-2 and
Forms 1099), income tax returns, employ-
ment tax returns, and excise tax returns.
(e) Example. The following example
illustrates the provisions of this section:
(1) During the calendar year ending December
31, 2022, Organization X was required to file one
Form 1120-POL, U.S. Income Tax Return for Cer-
tain Political Organizations, four (quarterly) Forms
8872, Political Organization Report of Contribu-
tions and Expenditures, two Forms W-2, Wage and
Tax Statement, one Form 940, Employer’s Annual
Federal Unemployment (FUTA) Tax Return, and
four Forms 941, Employer’s Quarterly Federal
Tax Return. Because X is required to file 12 returns
during the calendar year, X is required to file its
Form 1120-POL electronically for its taxable year
ending December 31, 2022.
(2) [Reserved]
(f) Applicability date. The rules of this
section apply for income tax returns re-
quired to be filed during calendar years
beginning after [Date of publication of the
Treasury decision adopting these rules as
final regulations in the Federal Register].
Par. 29. Section 301.6033-4 is revised
to read as follows:
§301.6033-4 Required filing in
electronic form for returns by
organizations required to file returns
under section 6033.
(a) Returns by organizations required
to file returns under section 6033 in elec-
tronic form. (1) An organization required
to file a return under section 6033 must
file its return in electronic form.
(2) Returns filed in electronic form
must be filed in accordance with appli-
cable revenue procedures, publications,
forms, instructions, or other guidance.
(b) Failure to file. If an organization
required to file a return under section
6033 fails to file an information return in
electronic form when required to do so by
this section, the organization is deemed to
have failed to file the return. (See section
6652 for the addition to tax for failure to
file a return.) In determining whether there
is reasonable cause for failure to file the
return, §301.6652-2(f) will apply.
(c) Meaning of terms. For purposes of
this section the term return required under
section 6033 means a Form 990, Return of
Organization Exempt From Income Tax,
Form 990-EZ, Short Form Return of Or-
ganization Exempt From Income Tax, and
Form 990-PF, Return of Private Founda-
tion or Section 4947(a)(1) Trust Treated
as Private Foundation, along with all
other related forms, schedules, and state-
ments that are required to be attached to
the Form 990, Form 990-EZ, or Form
990-PF, and all members of the Form 990
series of returns, including amended and
superseding returns. A Form 4720 filed by
a private foundation is a form required to
be filed under section 6033.
(d) Applicability date. The rules of this
section apply for any returns under section
6033 required to be filed during calendar
years beginning after [Date of publication
of the Treasury decision adopting these
rules as final regulations in the Federal
Register].
Par. 30. Section 301.6037-2 is amend-
ed by revising the section heading, para-
graphs (a), (b), (d)(1) and (5), (e) and (f)
to read as follows:
§301.6037-2 Required use of electronic
form for returns of electing small
business corporation.
(a) Returns of electing small business
corporation required electronically. (1)
An electing small business corporation
required to file an electing small busi-
ness return on Form 1120-S, U.S. Income
Tax Return for an S Corporation, under
§1.6037-1 of this chapter must file its
Form 1120-S electronically if the small
business corporation is required by the
Internal Revenue Code and regulations to
file at least 10 returns during the calendar
year.
(2) The Commissioner may direct the
type of electronic filing and may also ex-
empt certain returns from the electronic
requirements of this section through rev-
enue procedures, publications, forms, in-
structions, or other guidance, including
postings on the IRS.gov website. Returns
filed electronically must be made in accor-
dance with the applicable revenue proce-
dures, publications, forms, instructions, or
other guidance.
(b) Undue hardship. The Commission-
er may grant waivers of the requirements
of this section in cases of undue hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds the
cost of filing the return on paper. A request
for a waiver must be made in accordance
with applicable IRS revenue procedures,
publications, forms, instructions, or other
guidance, including postings to the IRS.
gov website. The waiver will specify the
type of filing (that is, a return required un-
der section 6037) and the period to which
it applies.
* * * * *
(d) * * * (1) Magnetic media or elec-
tronic form. The terms magnetic media or
electronic form mean any media or form
permitted under applicable regulations,
revenue procedures, or publications.
These generally include electronic filing,
as well as magnetic tape, tape cartridge,
diskette, and other media specifically per-
mitted under the applicable regulations,
procedures, publications, forms, instruc-
tions, or other guidance.
* * * * *
(5) Calculating the number of returns.
For purposes of this section, a corpora-
tion is required to file at least 10 returns
if, during the calendar year ending with
or within the corporation’s taxable year,
the corporation is required to file at least
10 returns of any type, including income
tax returns, employment tax returns, ex-
cise tax returns, and information returns
(for example, Forms W–2, Forms 1099,
but not including schedules required to
be attached to an S corporation return).
In the case of a short-period return, a cor-
poration is required to file at least 10 re-
turns if, during the calendar year in which
the corporation’s short taxable year ends,
the corporation is required to file at least
10 returns of any type, including infor-
mation returns (for example, Forms W–2,
Forms 1099, but not including schedules
required to be attached to an S corporation
return), income tax returns, employment
tax returns, and excise tax returns.
(e) Example. The following example
illustrates the provisions of this section.

August 9, 2021 300 Bulletin No. 2021–32
In the example, the corporation is a calen-
dar-year taxpayer.
(1) In 2022, Corporation S, an electing small
business corporation, is required to file one 2021
Form 1120-S, U.S. Corporation Income Tax Re-
turn, two Forms W–2, Wage and Tax Statement,
two Forms 1099–DIV, Dividends and Distributions,
one Form 940, Employer’s Annual Federal Unem-
ployment (FUTA) Tax Return, and four Forms 941,
Employer’s Quarterly Federal Tax Return. Because
S is required to file 10 returns during the calendar
year 2022, S is required to file its 2022 Form 1120-S
electronically.
(2) [Reserved]
(f) Applicability date. The rules of this
section apply for electing small business
corporation returns required to be filed
during calendar years beginning after
[Date of publication of the Treasury deci-
sion adopting these rules as final regula-
tions in the Federal Register].
Par. 31. Section 301.6057-3 is amend-
ed by:
1. Revising paragraphs (a), (b), and (d)
(1);
2. Revising the heading of paragraph
(d)(4);
3. Revising paragraph (d)(4)(i);
4. In paragraph (e), designating the ex-
ample as paragraph (e)(1).
5. Revising newly designated para-
graph (e)(1) and adding paragraph (e)(2);
and
6. Revising paragraph (f).
The revisions and addition read as fol-
lows:
§301.6057-3 Required use of electronic
form for filing requirements relating to
deferred vested retirement benefit.
(a) Electronic-filing requirements un-
der section 6057. A registration statement
required under section 6057(a) or a noti-
fication required under section 6057(b)
with respect to an employee benefit plan
must be filed electronically if the filer is
required by the Internal Revenue Code or
regulations to file at least 10 returns during
the calendar year that includes the first day
of the plan year. The Commissioner may
direct the type of electronic filing and may
also exempt certain returns from the elec-
tronic requirements of this section through
revenue procedures, publications, forms,
instructions, or other guidance, including
postings on the IRS.gov website. Returns
filed electronically must be made in ac-
cordance with applicable revenue proce-
dures, publications, forms, instructions, or
other guidance.
(b) Undue hardship. The Commission-
er may waive the requirements of this sec-
tion in cases of undue economic hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the registration state-
ments or notifications electronically in
accordance with this section exceeds the
cost of filing the registration statements
or notifications on paper. A request for a
waiver must be made in accordance with
applicable IRS revenue procedures, publi-
cations, forms, instructions, or other guid-
ance, including postings to the IRS.gov
website. The waiver will specify the type
of filing (that is, a registration statement
or notification under section 6057) and the
period to which it applies.
* * * * *
(d) * * * (1) Magnetic media or elec-
tronic form. The terms magnetic media or
electronic form mean any media or form
permitted under applicable regulations,
revenue procedures, or publications.
These generally include electronic filing,
as well as magnetic tape, tape cartridge,
diskette, and other media specifically per-
mitted under the applicable regulations,
procedures, publications, forms, instruc-
tions, or other guidance.
* * * * *
(4) Calculating the number of re-
turns—(i) In general. For purposes of this
section, a filer is required to file at least
10 returns if, during the calendar year that
includes the first day of the plan year, the
filer is required to file at least 10 returns
of any type, including information re-
turns (for example, Forms W-2 and Forms
1099), income tax returns, employment
tax returns, and excise tax returns.
* * * * *
(e) * * *
(1) Example. In 2023, P, the plan administrator of
Plan B, is required to file 12 returns (including Forms
1099-R, Distributions From Pensions, Annuities,
Retirement or Profit-Sharing Plans, IRAs, Insur-
ance Contracts, etc.; Form 8955-SSA; Form 5500,
Annual Return/Report of Employee Benefit Plan;
and Form 945, Annual Return of Withheld Federal
Income Tax). Plan B’s plan year is the calendar year.
Because P is required to file at least 10 returns during
the 2023 calendar year, P must file the 2023 Form
8955-SSA for Plan B electronically.
(2) [Reserved]
(f) Applicability date. The rules of this
section apply for registration statements
and other notifications required to be filed
under section 6057 for plan years that be-
gin on or after January 1, 2022, but only
for filings with a filing deadline (not tak-
ing into account extensions) after July 31,
2022.
Par. 32. Section 301.6058-2 is amend-
ed by:
1. Revising the section heading.
2. Revising paragraphs (a), (b), and (d)
(1);
3. Revising the heading of paragraph
(d)(3); and
4. Revising paragraphs (d)(3)(i), (d)(3)
(iii), (e), and (f).
The revisions read as follows:
§301.6058-2 Required use of electronic
form for filing requirements relating
to information required in connection
with certain plans of deferred
compensation.
(a) Electronic-filing requirements un-
der section 6058. A return required under
section 6058 with respect to an employee
benefit plan must be filed electronically if
the filer is required by the Internal Rev-
enue Code or regulations to file at least
10 returns during the calendar year that
includes the first day of the plan year. The
Commissioner may direct the type of elec-
tronic filing and may also exempt certain
returns from the electronic requirements of
this section through revenue procedures,
publications, forms, instructions, or other
guidance, including postings on the IRS.
gov website. Returns filed electronically
must be made in accordance with the ap-
plicable revenue procedures, publications,
forms, instructions, or other guidance.
(b) Undue hardship. The Commission-
er may waive the requirements of this sec-
tion in cases of undue economic hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the return electronically
in accordance with this section exceeds
the cost of filing the returns on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, a return required
under section 6058) and the period to
which it applies.

Bulletin No. 2021–32 301 August 9, 2021
* * * * *
(d) * * * (1) Magnetic media or elec-
tronic form. The terms magnetic media or
electronic form mean any media or form
permitted under applicable regulations,
revenue procedures, or publications.
These generally include electronic filing,
as well as magnetic tape, tape cartridge,
diskette, and other media specifically per-
mitted under the applicable regulations,
procedures, publications, forms, instruc-
tions, or other guidance.
* * * * *
(3) Calculating the number of returns—
(i) In general. For purposes of this section,
a filer is required to file at least 10 returns
if, during the calendar year that includes
the first day of the plan year, the filer is
required to file at least 10 returns of any
type, including information returns (for
example, Forms W-2 and Forms 1099), in-
come tax returns, employment tax returns,
and excise tax returns. See section 6011(e)
(6), Application of numerical limitation to
returns relating to deferred compensation
plans.
* * * * *
(iii) Special rules relating to calculat-
ing the number of returns. For purposes
of applying paragraph (d)(3)(ii) of this
section, the aggregation rules of sec-
tion 414(b), (c), (m), and (o) will apply
to a filer that is or includes an employer.
Thus, for example, a filer that is a mem-
ber of a controlled group of corporations
within the meaning of section 414(b)
must file the Form 5500 series electron-
ically if the aggregate number of returns
required to be filed by all members of the
controlled group of corporations is at least
10 returns.
(e) Example. The following example
illustrates the provisions of paragraph (d)
(3) of this section:
(1) In 2023, Employer X (the plan sponsor and
plan administrator of Plan A) is required to file 12
returns. The sole shareholder of X and his spouse
are the only participants in Plan A. Employer X is
required to file the following: one Form 1120, U.S.
Corporation Income Tax Return; two Forms W-2,
Wage and Tax Statement; one Form 940, Employer’s
Annual Federal Unemployment (FUTA) Tax Return;
four Forms 941, Employer’s Quarterly Federal Tax
Return; one Form 945, Annual Return of Withheld
Federal Income Tax; and two Forms 1099-DIV, Div-
idends and Distributions. Employer X is required to
file one Form 5500-EZ. Plan A’s plan year is the cal-
endar year. Because Employer X is required to file
at least 10 returns during the 2023 calendar year, the
2023 Form 5500-EZ must be filed electronically.
(2) [Reserved]
(f) Applicability date. This section is
applicable for returns required to be filed
under section 6058 for plan years that be-
gin on or after January 1, 2022, but only
for filings with a filing deadline (not tak-
ing into account extensions) after July 31,
2022.
Par. 33. Section 301.6059-2 is amend-
ed by:
1. Revising the section heading;
2. Revising paragraphs (a), (b), (d)(1);
3. In paragraph (d)(3), revising the
paragraph heading and paragraph (d)(3)
(i);
4. Removing paragraph (e) and redes-
ignating paragraph (f) as paragraph (e);
and
5. Revising newly designated para-
graph (e).
The revisions read as follows:
§301.6059-2 Required use of electronic
form for filing requirements relating to
periodic report of actuary.
(a) Electronic-filing requirements un-
der section 6059. An actuarial report re-
quired under section 6059 with respect
to an employee benefit plan must be filed
electronically if the filer is required by the
Internal Revenue Code or regulations to
file at least 10 returns during the calen-
dar year that includes the first day of the
plan year. The Commissioner may direct
the type of electronic filing and may also
exempt certain returns from the electron-
ic requirements of this section through
revenue procedures, publications, forms,
instructions, or other guidance, including
postings on the IRS.gov website. Actu-
arial reports filed electronically must be
made in accordance with the applicable
revenue procedures, publications, forms,
instructions, or other guidance.
(b) Undue hardship. The Commission-
er may waive the requirements of this sec-
tion in cases of undue economic hardship.
The principal factor in determining hard-
ship will be the amount, if any, by which
the cost of filing the reports electronically
in accordance with this section exceeds
the cost of filing the reports on paper. A re-
quest for a waiver must be made in accor-
dance with applicable IRS revenue proce-
dures, publications, forms, instructions, or
other guidance, including postings to the
IRS.gov website. The waiver will specify
the type of filing (that is, an actuarial re-
port required under section 6059) and the
period to which it applies.
* * * * *
(d) * * * (1) Magnetic media or elec-
tronic form. The terms magnetic media or
electronic form mean any media or form
permitted under applicable regulations,
revenue procedures, or publications.
These generally include electronic filing,
as well as magnetic tape, tape cartridge,
diskette, and other media specifically per-
mitted under the applicable regulations,
procedures, publications, forms, instruc-
tions, or other guidance.
* * * * *
(3) Calculating the number of re-
turns—(i) In general. For purposes of this
section, a filer is required to file at least
10 returns if, during the calendar year that
includes the first day of the plan year, the
filer is required to file at least 10 returns
of any type, including information re-
turns (or example, Forms W-2 and Forms
1099), income tax returns, employment
tax returns, and excise tax returns.
* * * * *
(e) Applicability date. This section is
applicable for actuarial reports required to
be filed under section 6059 for plan years
that begin on or after January 1, 2022,
but only for filings with a filing deadline
(not taking into account extensions) after
July 31, 2022.
Par. 34. Section 301.6721-1 is amend-
ed by:
1. Revising paragraph (a)(2)(ii).
2. In paragraph (b)(5), revising the in-
troductory text.
3. In paragraph (b)(5), designating Ex-
amples 1 through 4 as paragraphs (b)(5)(i)
through (iv).
4. Revising newly designated para-
graphs (b)(5)(iii) and (b)(5)(iv).
5. Adding paragraphs (b)(5)(v) and (b)
(5)(vi).
6. Adding paragraph (h).
The revisions and additions read as fol-
lows:
§301.6721-1 Failure to file correct
information returns.
(a) * * *
(2) * * *

August 9, 2021 302 Bulletin No. 2021–32
(ii) A failure to include all the informa-
tion required to be shown on the return or
including incorrect information (failure to
include correct information). A failure to
file timely includes a failure to file in the
required manner, for example, electroni-
cally or in other machine-readable form as
provided under section 6011(e). However,
no penalty is imposed under paragraph (a)
(1) of this section solely by reason of any
failure to comply with the requirements
of section 6011(e)(2), except to the extent
that the failure occurs with respect to more
than the applicable number of returns (de-
termined under regulations prescribed un-
der section 6011(e)(5) with respect to the
calendar year during which such returns
are required to be filed), or with respect to
a return described in section 6011(e)(4). If
a partnership return under section 6031(a)
is required to be filed electronically, each
schedule required to be included with
such return with respect to each partner
will be treated as a separate information
return for purposes of this section. See
section 6724(e). Filers who are required
to file information returns electronically
and who file those information returns
electronically are considered to have sat-
isfied the electronic filing requirement.
Except as provided in paragraph (c)(1) or
(e)(1) of this section, a failure to include
correct information encompasses a failure
to include the information required by ap-
plicable information-reporting statutes or
by any administrative pronouncements
issued thereunder (such as regulations,
revenue rulings, revenue procedures, or
information-reporting forms, and form
instructions). A failure to include informa-
tion in the correct format may be either a
failure to file timely an information return
or a failure to include correct information
on an information return. For example, an
error on an electronic submission to the
Internal Revenue Service that prevents
processing by the Internal Revenue Ser-
vice may constitute a failure to file timely.
However, if information is set forth on the
wrong field of the electronic submission,
that error may constitute a failure to file
timely or a failure to include correct in-
formation, depending upon the extent of
the failure. For purposes of paragraph
(b) of this section, a failure to file cor-
rected information returns in the format
required under §301.6011-2(c)(4)(ii) will
be deemed a failure to correct the corre-
sponding original information returns.
(b) * * *
(5) Examples. The provisions of paragraphs (a)
and (b)(1) through (4) of this section may be illus-
trated by the following examples. These examples
do not take into account any possible application of
the de minimis exception under paragraph (d) of this
section, the lower small business limitations under
paragraph (e) of this section, the penalty for inten-
tional disregard under paragraph (f) of this section,
adjustments for inflation under section 6721(f), or
the reasonable-cause waiver under §301.6724–1(a):
* * * * *
(iii) Example 3. In calendar year 2023, Corpora-
tion U timely files on paper 12 Forms 1099–MISC
for the 2022 calendar year with correct information.
Under §301.6011-2, a person required to file at least
10 returns during calendar year 2023 must file those
returns electronically. Corporation U does not cor-
rect its failures to file these returns electronically by
August 1, 2023. See section 6721(b)(2). Corpora-
tion U is therefore subject to a penalty for a failure
to file timely under paragraph (a)(2) of this section.
However, under section 6724(c) and paragraph (a)
(2) of this section, the penalty for a failure to file
timely electronically applies only to the extent the
number of returns exceeds 10. As Corporation U was
required to file 12 returns electronically, it is subject
to a penalty of $500 for 2 returns ($250 x 2 = $500).
(iv) Example 4. In calendar year 2023, Corpo-
ration W timely electronically files 25 Forms 1099-
B (relating to proceeds from broker and barter ex-
change transactions) with incorrect information. On
August 1, 2023, Corporation W discovers the errors
and files 25 corrected Forms 1099-B on paper. Under
§301.6011-2(c)(4)(2)(A), a person required to file an
original information return covered by §301.6011-
2(b) electronically must file any corrected infor-
mation return corresponding to that original return
electronically. Under paragraph (a)(2)(ii) of this sec-
tion, a failure to file a corrected information return
electronically when required to do so is deemed a
failure to correct the corresponding original informa-
tion return. As Corporation W was required to file its
25 corrected information returns electronically, it is
deemed to have failed to correct the original infor-
mation returns and is subject to a penalty of $6,250
for failure to include correct information on its 25
original Forms 1099-B ($250 x 25 = $6,250), with-
out any reductions for correcting the information on
or before August 1.
(v) Example 5. During the 2023 calendar year,
Corporation V files 25 Forms 1099–B (relating to
proceeds from broker and barter exchange transac-
tions) on paper. The forms were filed on March 15,
2023, rather than on the required filing date of Febru-
ary 28, 2023. Under §301.6011-2, a person required
to file at least 10 returns during calendar years 2023
and after must file those returns electronically. Cor-
poration V does not correctly file these returns elec-
tronically by August 1, 2023. See section 6721(b)
(2). Corporation V is subject to a penalty of $500
for filing 10 of the returns late, but within 30 days
after the required filing date ($50 x 10). In addition,
Corporation V is subject to a penalty of $3,750 for
failing to file 15 returns electronically ($250 x 15).
(vi) Example 6. Partnership X has 120 partners in
calendar year 2022. In calendar year 2023, it timely
filed on paper its 2022 Form 1065 and 230 accompa-
nying Schedules K-1 and Schedules K-3 (120 Sched-
ules K-1 and 110 Schedules K-3). Partnership X filed
no other returns during calendar year 2023. Under
§301.6011-3(a)(1)(B), a partnership with more than
100 partners must electronically file its partnership
return, including Schedules K-1 and K-3. Under
section 6724(e), Schedules K-1 and K-3 are treated
as separate information returns for purposes of pen-
alties under section 6721, even though they are not
listed under §301.6011-2(b) as information returns
required to be filed electronically and are not de-
fined as information returns under section 6724(d).
Because the applicable number for information re-
turns required to be filed during calendar year 2023
is 10, Partnership X would be subject to a penalty of
$55,000 for failing to electronically file 220 Sched-
ules K-1 and K-3 required to be included with the
partnership return: the 11th through the 230th of the
required schedules ($250 x 220 = $55,000).
* * * * *
(h) Applicability date. The rules of
paragraph (a)(2)(ii) of this section apply
for information returns required to be
filed during calendar years beginning af-
ter [Date of publication of the Treasury
decision adopting these rules as final reg-
ulations in the Federal Register]. For the
rules that apply under paragraph (a)(2)
(ii) of this section for information returns
required to be filed before calendar years
beginning after [Date of publication of the
Treasury decision adopting these rules as
final regulations in the Federal Register],
see 26 CFR part 301, revised as of April
1, 2021.
Douglas W. O’Donnell,
Deputy Commissioner for Services
and Enforcement.
(Filed by the Office of the Federal Register on July
21, 2021, 4:15p.m., and published in the issue of the
Federal Register for July 23, 2021, 86 FR 39910)

Bulletin No. 2021–32 i August 9, 2021
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul-
ing is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previous-
ly published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cas-
es in litigation, or the outcome of a Ser-
vice study.
Abbreviations
The following abbreviations in current use
and formerly used will appear in material
published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

August 9, 2021 ii Bulletin No. 2021–32
Numerical Finding List
1
Bulletin 2021–32
Announcements:
2021-12, 2021-31 I.R.B. 267
Notices:
2021-39, 2021-27 I.R.B. 3
2021-40, 2021-28 I.R.B. 15
2021-41, 2021-29 I.R.B. 17
2021-42, 2021-29 I.R.B. 19
2021-38, 2021-30 I.R.B. 155
2021-44, 2021-31 I.R.B. 166
2021-45, 2021-31 I.R.B. 170
2021-47, 2021-32 I.R.B. 269
Proposed Regulations:
REG-107705-21, 2021-30 I.R.B. 162
REG-102951-16, 2021-32 I.R.B. 272
Revenue Procedures:
2021-28, 2021-27 I.R.B. 5
2021-29, 2021-27 I.R.B. 12
2021-24, 2021-29 I.R.B. 19
2021-14, 2021-30 I.R.B. 158
2021-30, 2021-31 I.R.B. 172
Revenue Rulings:
2021-12, 2021-27 I.R.B. 1
2021-13, 2021-30 I.R.B. 152
2021-14, 2021-31 I.R.B. 164
Treasury Decisions:
9951, 2021-30 I.R.B. 25
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2021–27 through 2021–52 is in Internal Revenue Bulletin
2021–52, dated December 27, 2021.

Bulletin No. 2021–32 iii August 9, 2021
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2021–32
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2021–27 through 2021–52 is in Internal Revenue Bulletin
2021–52, dated December 27, 2021.

Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300
INTERNAL REVENUE BULLETIN
The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletins are available at www.irs.gov/irb/.
We Welcome Comments About the Internal Revenue Bulletin
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,
we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page
www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave.
NW, IR-6230 Washington, DC 20224.