Most states have mandatory requirements for electronic filing of tax returns. You should be aware of a state's e-file requirements before preparing your client's tax return, as failure to follow the requirements can subject you to monetary penalties. To learn more about the requirements, click on the state name below to go to that state's website.
- AL Individual: Preparers who prepare 11 or more returns in a calendar year are required to e-file all their individual returns in the current year as well as subsequent years. (AL DOR Administrative Code 810-3-27-.09)
- AL Business: Preparers who prepare 25 or more corporate or partnership returns in a calendar year using tax preparation software are required to e-file them that year and in all subsequent years. (AL DOR Administrative Code 810-3-39-.12)
- Arizona does not mandate e-filing.
- Arkansas does not mandate e-filing.
- CA Individual: Tax practitioners who prepare more than 100 California individual income tax returns and prepare one or more using tax preparation software are required to e-file all individual income tax returns. This requirement is waived if in the previous calendar year 25 or fewer returns were prepared. (Revenue and Taxation Code 18621.9)
- CA Business: All business returns are required to be e-filed. (AB 2754:478)
- CA Fiduciary: Fiduciary returns are not required to be e-filed.
- Colorado does not mandate e-filing.
- CT Individual: Preparers who prepare 50 or more Connecticut income tax returns are required to file all personal income tax returns electronically. (Conn. Agencies Regs. Section 12-690-1)
- CT Business: Composite Income Tax returns (S-Corp, Partnership) and Corporation Business Tax returns are required to be filed electronically.
- Delaware does not mandate e-filing.
District of Columbia
- DC does not mandate e-filing.
- FL Business: Florida corporate income tax returns (C Corp and S Corp) must be e-filed if required to file the federal income tax returns electronically, or if $20,000 or more in Florida corporate income tax was paid during the prior state fiscal year (July 1 to June 30). (FLA STAT § 213.755(1) (2018))
- Georgia follows the federal e-file guidelines. For any return required to be e-filed to the Federal government, its state counterpart must also be e-filed. This means that a preparer who prepares more than 10 returns must e-file them. Additionally, if a payment is required to be made electronically, then its associated return must also be filed electronically. (OCGA § 48-7-54, Ga. Comp. R. & Regs. R. 560-3-2-.26(7)(a), (c),26 USC § 6011 (e)(3)(B))
- Hawaii does not mandate e-filing.
- Idaho does not mandate e-filing.
- IL Individual: Preparers who file more than 10 Illinois individual income tax returns must file those returns electronically. (IL DOR Regs Title 86: Part 760 Section 760.100)
- IL Business: Business and partnership returns must be electronically filed.
- IN Individual: Paid preparers who file 10 or more Indiana individual income tax returns must file those returns electronically. (IC 6-3-4-1.5)
- Iowa does not mandate e-filing.
- KS Individual: Tax return practitioners who prepare 50 or more Kansas individual income tax returns during any calendar year must file at least 90% of their Kansas individual returns electronically in successive years. Currently, the e-file requirement only applies to individual income tax returns. (K.S.A. 79-3220)
- KS Business: At present, corporate and partnership returns are not required to be filed electronically.
- KY Individual or Fiduciary: Kentucky follows the Federal mandate that a preparer must e-file KY individual returns unless they file 10 or fewer returns in a calendar year. (KRS 131.250(2)(d), 26 USC § 6011 (e)(3)(B))
- KY Pass-through Entities: As of January 1, 2019 pass-through entities with gross receipts in excess of $1,000,000 will be required to file returns electronically, including Schedule LLET. (KRS 131.250(2)(g))
- LA Individual: Practitioners who prepare more than 100 Louisiana individual income tax returns during any calendar year must file at least 90% of their Louisiana returns electronically. Once returns have been e-filed, the 90% threshold must be maintained in future years irrespective of the number of returns filed. (La. Rev. Stat. Ann. §47:1520, LAC 61:III:1501)
- LA Business: LA doesn't currently have an e-file mandate for corporate or partnership returns. It does, however, require e-filing of any similar return required by the IRS to be e-filed.
- ME Individual: The threshold is 11 or more Maine individual income tax returns filed in the previous filing season. (DAFS MRS 104.03)
- ME Corporation: Corporations with assets in excess of $5,000,000 at the end of the tax year must e-file unless granted a waiver. (DAFS MRS 104.06)
- ME Pass-through Entities: Pass-through entities with any nonresident members that are subject to pass-through withholding on Maine-source income must e-file. (DAFS MRS 104.05(C))
- If a preparer filed 100 or more Maryland returns in the previous year, they must electronically file returns in the following year. (Md Code Tax General §10–824)
- MA Personal Income Tax Returns: Paid preparers must file all personal income tax returns (i.e., Forms 1 and 1-NR/PY) electronically unless the preparer reasonably expects to file 10 or fewer original returns during the calendar year (excluding returns where the taxpayer directed that the filing be done on paper).
- MA Corporation: Corporations reporting more than $100,000 in gross receipts or sales or other income on their federal return must e-file.
- MA S Corporation: S Corporations with gross income totaling more than $100,000, including income taxed to the S corporation as well as the S corporation's shareholders' pro rata share items, must e-file.
- MA Partnership: Partnerships with 25 or more partners must e-file. Partnerships with $50,000 or more in gross income or ordinary loss, or $100,000 in gains or losses through sale of stock, must e-file.
- MA pass-through entities with members other than resident individuals or with members receiving distributive share for which withholding or estimated taxes have been paid must e-file.
- MA businesses that meet the e-file mandate in a year must e-file in all subsequent years.
- MA Individual Extensions: The state of Massachusetts requires personal income tax extensions with zero payment or with payments of $5,000 or more to be filed (and paid, if applicable) electronically.
- MI Individuals: If a preparer is required to file their Federal individual income tax returns electronically, they are required to file their Michigan individual income tax returns electronically.
- MI Business: Michigan business returns must be electronically filed.
- MN Individual: A paid preparer who reasonably expects to file more than 10 individual and business MN returns must file them electronically. Returns that would otherwise meet the requirements of the mandate are subject to a $5 penalty if paper filed. (M.S. 289A.08, subd. 16)
- MS Business: Pass-Through Entities that issue 100 or more K-1’s must e-file. Corporations, S Corporations and Partnerships with assets greater than $5,000,000 must e-file. (Miss. Reg. 35.I.04-200)
- Missouri does not mandate e-filing.
- MT Business: A partnership having more than 100 partners at any time over the course of its tax year must electronically file a Montana Partnership Information and Composite Return (Form PR-1). (15-30-3315, MCA)
- Any person or business who was paid to prepare and file more than 25 income tax returns of any kind on behalf of any taxpayer for the prior calendar year must e-file all current year tax returns. Tax preparers who are required to e-file returns may be assessed a $100 penalty for each return not e-filed. (Neb. Rev. Stat § 77-1784(7))
- New Hampshire does not mandate e-filing.
- NJ Individual, Estate, and Trust returns: Paid tax preparers that prepare 11 or more New Jersey individual Income Tax resident returns, including those filed for trusts and estates during the tax year, must use electronic methods to file those returns.
- NJ Partnership: New Jersey partnership returns with 10 or more partners must be filed electronically.
- NM Individual: A preparer who prepares over 25 personal income tax returns for a taxable year must file them electronically. (N.M. Stat. Ann. §7-1-71.4)
- NY Individual: You are required to electronically file tax returns if you prepared at least 10 returns of any kind in 2018 and will use software to prepare and file at least one return in 2019. Additionally, once you are subject to the e-file mandate you must continue to e-file in all future years, even if the number of returns you file falls below the 10-return threshold. Clients cannot opt out of e-filing. A $50 penalty applies to each return and extension that you fail to e-file, unless you have reasonable cause for failure to comply.
- New York City Business: Tax Preparers who have prepared 100 or more documents (returns, extensions, amended returns, prior year returns, and estimated tax payments) and used tax software to prepare corporate and partnership tax documents must e-file them. Preparers cannot opt out of e-filing, though their clients can request a hardship waiver from the Business Tax e-File Program at the NYC Dept of Finance. Certain forms are required to be e-filed; others are optional. See here for more detailed information.
- North Carolina does not mandate e-filing
- North Dakota does not mandate e-filing
- OH Individual: All returns must be e-filed if more than 11 are prepared during the year. The requirement is waived in a calendar year if 10 or fewer returns were prepared in the previous calendar year. (Although this mandate applies to all original tax returns, the Department of Taxation is only enforcing the mandate on the personal income tax, sales tax, commercial activities tax (CAT), and employer withholding tax (above certain limits) returns.) (ORC 5747.082(C))
- OK Individual: Oklahoma follows the Federal mandate that a preparer must e-file individual returns unless they file 10 or fewer returns in a calendar year. (68 O.S. § 2385, 26 USC 6011 (e)(3)(b))
- OR Individual: Oregon follows the Federal mandate that a preparer must e-file individual returns unless they file 10 or fewer returns in a calendar year. (Or. Admin. R. 150-314-0152, 26 USC 6011 (e)(3)(b))
- OR Business: If a corporation is required to e-file their federal return, then the Oregon return is also required to be e-filed. In addition, if e-filing was required for the original return, then any amended returns for that year must also be e-filed. (Or. Admin. R. 150-314-0150)
- PA Individual: Preparers who prepare 11 or more personal income tax returns in a calendar year are required to e-file all personal income tax returns in the current year as well as subsequent years. (43 Pa.B. 5774 (September 28, 2013))
- PA Corporation: All third-party preparers who prepared 50 or more PA corporate tax reports in the prior calendar year are required to electronically file all PA corporate tax reports in subsequent years. Once a third-party preparer is subject to this filing mandate, the third-party preparer shall continue to be subject to the mandate regardless of how many PA corporate tax reports are prepared during a calendar year. Corporations completing their own Corporate Tax Report are not subject to this mandate.
- If a preparer files 100 or more Rhode Island individual and business income tax returns, they must be e-filed. (DTR ELF 09-01, RI Gen L § 44-1-31.1)
- If a preparer files 100 or more South Carolina returns they must be e-filed. All original returns for the same tax type and period should be used to determine the number of returns. Amended returns and Extensions do not count towards the total. (SC Code § 12-54-250(F) (2012))
- Tennessee requires Franchise/Excise Tax and Hall Income Tax returns to be electronically filed. (Tenn.Code Ann. Section 67-1-115(a))
- TX Franchise Tax: The Franchise Tax No Tax Due report (Form 05-163) must be e-filed.
- UT Individual: A preparer or multiple preparers affiliated together in the same establishment who prepare 101 or more returns in the prior calendar year must submit all Utah Individual tax returns electronically. Exceptions apply for taxpayers who elect to opt-out of electronic filing and for undue hardship on the preparer in conforming to the mandate. (Utah Code Ann. §59-10-514.1)
- VA Individual: Preparers who prepare 50 or more returns in a tax year must file all eligible returns electronically in all subsequent years. If a return is not eligible for electronic filing, it may be filed on paper using software that produces a 2D barcode on the return. (Va. Code Ann. §58.1-9(D))
- VA Corporation: Corporations must file returns and make return payments and estimated payments electronically.
- VA Pass-through Entities: Pass-through entities must file and pay electronically.
- WV Individual: Preparers who filed more than 25 personal income tax returns last year – and will be using tax preparation software to complete one or more of these returns – must e-file for the current tax year. Also, taxpayers whose tax remittances were greater than $25,000 are required to e-file. (W. Va. Code §11-10-5z)
- WV Business: Businesses that have made payments totaling $25,000 or more during the most recent fiscal year may be required to file and pay their West Virginia taxes electronically.
- WI Individual: A preparer who filed 50 or more individual income tax returns will be required to e-file the following year, and they will be notified of this requirement by the Wisconsin DOR by October 1. (Wis. Admin. Code §2.08(3)(b))
- WI Business: Wisconsin Corporation Combined returns are required to e-filed. (Wis. Admin. Code §2.67(2)(b))