Publication 1437

Procedures for the 1041 e-file Program

 U.S. Income Tax Returns for Estates 

 and Trusts for TaxYear 2006

 Internal Revenue Service

Department of the Treasury

Internal Revenue Service

Publication 1437 (Rev. 12-2006)

Catalog Number 10466Q

IRS

www.irs.gov
PUBLICATION 1437 

PROCEDURES 

FOR THE 1041 e-file PROGRAM 

U.S. INCOME TAX RETURN FOR 

ESTATES & TRUSTS FOR TAX YEAR 2006 

 

INTERNAL REVENUE SERVICE 

ELECTRONIC BUSINESS RETURNS

 

Publication 1437 November 2006 
INTERNAL REVENUE SERVICE MISSION 

STATEMENT 

Provide America’s taxpayers top quality 

service by helping them understand and 

meet their tax responsibilities and by 

applying the tax law with integrity and 

fairness to all. 

Publication 1437 November 2006 
TABLE OF CONTENTS 

PROCEDURES FOR THE 1041 e-file PROGRAM

SECTION PAGE

 WHAT’S NEW FOR TAX YEAR 2006 1 

1. INTRODUCTION 

• Purpose 2 

• Change Page 2 

• Copies of Forms and Publications 2 

• Questions, Suggestions or Concerns 2 

• e-Help desk 3 

2. GENERAL INFORMATION 

• Form 1041 4 

• When to File 4 

• Methods of Filing 4 

• Programming 5 

• Foreign Address 5 

• Accounting Periods 5 

• Processing 6 

• Amended Returns 6 

• Short Tax Year 7 

3. COMPOSITION OF THE RETURN 

• Tax Return Data 8 

• Acceptable Forms, Schedules and Statements 9 

• Types of Records 12 

• The Paper Part of the Return 13 

4. EXCLUSIONS 

• Types of Returns 14 

• Failure to File Penalties 15 

Publication 1437 November 2006 
TABLE OF CONTENTS 

PROCEDURES FOR THE 1041 e-file PROGRAM

SECTION PAGE

5. ACKNOWLEDGMENT PROCESS 

• Acknowledgment File 16 

• Transmission Acknowledgment 16

• Validation Acknowledgment 16 

• Problems After Transmission 16 

6. METHODS OF PARTICIPATION 

• Type of Participants 17 

7. APPLICATION AND ENTITY REVIEW 

•

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•

•

•

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•

•

•

•

•

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Form 8633 Application 19 

Who to Contact 19 

Entity Review Process 20 

8. BUSINESS ACCEPTANCE TETING SYSTEM (BATS) AND 

ACCEPTANCE PROCEDURES

Business Acceptance Testing System (BATS) 21 

Pre-Entity Testing 21 

Ready to Test 22 

Testing Requirements for Transmitters 22 

Testing Requirements for Software Developers 23 

Acceptance Procedures 24 

Test Scenarios 24 

9. FILING REQUIREMENTS AND RESPONSIBILITIES

Contingency Plan 26 

Integrity and Accuracy 26 

Revocation 26

Security 26

Transmitting the Return 26 

Start-Up Date 27

Publication 1437 November 2006 
TABLE OF CONTENTS 

PROCEDURES FOR THE 1041 e-file PROGRAM

SECTION PAGE

• Drain Times 27 

• Required Consistency Check 27

• Requirements for Software Developers 27 

• Due Dates 28

• Extensions 29 

• When to File 29 

• Where to File 30 

• Address Change 30 

• Changing Entries on the Return 30 

10. FEDERAL/STATE REQUIREMENTS 

• General Description 31 

• Return Rejection 31 

• State Return 31

• Fed/State 32

• Requirements for Electronic Filing 32 

• Overpayments 32 

• Exclusions from Electronic Filing 33 

• Return Sequence Order 33 

• Acknowledgment (ACK) Report 33 

11. SIGNATURE FORM PROCEDURES (FORM 8453-F) 

• Purpose of Form 8453-F 34 

• Required Signatures 34 

• Fiduciary’s Authorization 34 

• Multiple Tax Return Listing 34 

• Bought/Sold 35 

• Postmark Date 35

• Electronic Postmark 35

• Substitute Form 8453-F 36 

• Problems Relating to Form 8453-F 36 

• Failure to File Penalties 36 

Publication 1437 November 2006 
TABLE OF CONTENTS 

PROCEDURES FOR THE 1041 e-file PROGRAM

SECTION PAGE

12. WHERE TO SEND FORM 8453-F AND PAPER ATTACHMENTS

• Packaging Instructions 37 

• Shipping and Packaging 37 

• Method of Delivery 37 

• Resubmission on Paper 38 

13. BALANCE DUE RETURNS: TAX PAYMENT 

 

• Balance Due Returns 39 

• Payments 39

• Electronic Funds Withdrawal 39

• EFTPS 40 

14. DISTRIBUTION OF COPIES 

• Participant’s Copy 41 

• Client’s Copy 41 

• Electronic Acknowledgment 41 

• Fiduciary’s Copy 41 

• IRS Copies 41 

15. ADVERTISING STANDARDS 

• Restrictions 42

• Endorsement 42

16. SAFEGUARDING THE 1041 e-FILE PROGRAM 

• Program Requirements 43 

• Monitoring 43 

• Sanctioning 43

• Suitability 43

• Submissions 44

• Quality 44

• Suspension 44

• Counseling 45 

• Penalties 45

Publication 1437 November 2006 
TABLE OF CONTENTS 

PROCEDURES FOR THE 1041 e-file PROGRAM

SECTION PAGE

17. ADMINISTRATIVE REVIEW 

• Participation 46 

• Reinstatement 46 

18. EFFECT ON OTHER DOCUMENTS 

• Revisions 46

• Publications 46 

19. EFFECTIVE DATE 

• Calendar and Fiscal Year Returns 46 

Publication 1437 November 2006 
Publication 1437 November 2006 1

WHAT’S NEW FOR TAX YEAR 2006

1. On December 4, 2006, the Internal Revenue Service will begin the Business 

Acceptance Testing System (BATS) for Software Developers and Transmitters. 

2. “Suggested BATS Testing Criteria” have been added to Section 8 of this 

publication. 

3. Effective January 22, 2007, the Internal Revenue Service (IRS) will begin to 

accept and process Tax Year 2006 Estate and Trust returns electronically. 

4. Changes have been made to the Form 1041 electronic record layout to allow 

“foreign addresses.” (See Publication 1438, 1041 Record Layout, “NOTE” 

under field number 110.)

5. Form 3468, Investment Credit, has been reduced to one page.

6. New Form 8913, Credit for Federal Telephone Excise Tax Paid, has been 

added. 

7. Changes have been made to Form 8886, Reportable Transaction Disclosure 

Statement, for Tax Year 2006 (2007 processing year). IRS e-file systems have 

not been updated to process Form 8886 for Tax Year 2006. Returns requiring 

Form 8886 for Tax Year 2006 will not be accepted electronically until after 

March 15, 2007. 
Publication 1437 November 2006 2

SECTION 1 INTRODUCTION 

PURPOSE This publication is designed to provide the general requirements 

and procedures for Form 1041 e-file Program, U.S. Income Tax

Return for Estates and Trusts. This publication should be used in 

conjunction with the following publications for Tax Year 2006: 

• Publication 1438, File Specifications, Validation Criteria and 

Record Layouts for The 1041 e-file Program, U.S Income 

Tax Return for Estates and Trusts

• Publication 1438-A, Supplement: Form and Schedule 

Exhibits 

• Publication 3112, IRS e-file Application and Participation

CHANGE PAGE If any information contained in this publication changes before its 

revision, a change page(s) may be issued. New information and 

changes will be denoted by a vertical bar (|) in the right margin. 

Any procedure that is added, deleted or has a major impact on the 

current year processing of returns will be communicated via e-mail 

and/or displayed on the IRS website. 

COPIES OF Visit our web site at www.irs.gov for methods to access and 

FORMS AND acquire both electronic and print media forms and publications 

PUBLICATIONS 

You may also place an order to be delivered by U.S. mail by calling 

1-800-829-3676. 

QUESTIONS, If you have any questions, suggestions or comments regarding 

SUGGESTIONS, this publication, or are aware of any errors, (typographical, 

OR CONCERNS technical or usage) please let us know. You may write to the 

following address: 

Internal Revenue Service 

Electronic Business Returns Section SE:W:CAS:SP:ES:B 

5000 Ellin Road, Room C5 -147 

Lanham, Maryland 20706 

Attn: 1041 e-file Program 
Publication 1437 November 2006 3

SECTION 1 INTRODUCTION, continued 

e-HELP DESK Call the e-Help Desk for the following: 

• Transmission problems 

• Reject Codes 

• Status of Processing 

• If you need another Test ETIN while filing production 

• If you need your Acknowledgment (ACK) File “re-hung” 

because it appears that you did not receive it. (Contact your 

software developer to make sure that the software is looking 

for and capable of parsing out each ACK File for a 

transmission when multiple ACK Files are picked up). 

The e-Help Desk number is 1-866-255-0654. 
Publication 1437 November 2006 4

SECTION 2 GENERAL INFORMATION 

FORM 1041 Form 1041, U. S Income Tax return for Estates and Trusts is used 

by the fiduciary of a domestic decedent’s estate, trust, or 

bankruptcy estate to report income, deductions, gains, losses, etc. 

of the estate or trust. Income that is either accumulated or held for 

future distribution or distributed currently to the Beneficiaries 

(taxable distributions) is reported to beneficiaries via Schedule K-1. 

 

WHEN TO FILE April 15th is the due date for electronic filing of Form 1041, 

Schedules K-1 and related forms and schedules and is the same as 

Form 1041 filed on paper.

METHODS OF Non-encrypted options for IRS e-file program 

FILING participants who transmit directly to the Electronic 

Management System (EMS) have been discontinued. 

All trading partners (transmitters) who directly transmit to the IRS 

EMS must use either the IRS internet solution or they must 

purchase and install in IRS Facilities Federal Information 

Processing Standard (FIPS)-compliant and IRS approved 

encrypted dedicated leased lines. 

NOTE: See Publication 1438 Section A, Data Communications, 

for more information about discontinuance of nonencrypted options for IRS e-file for the 2006 filing 

season. 

SECTION 2 GENERAL INFORMATION, continued 
Publication 1437 November 2006 5

PROGRAMMING This includes selected schedules and forms required by the IRS 

and supported by this program. 

 

File Specifications, Validation Criteria, Reject Codes, Record 

Layouts and Forms Exhibits that are needed by participants are 

provided in the following publications for Tax Year 2006: 

• Publication 1438, Validation Criteria and Reject Codes, and

Record Layouts for the 1041 e-file Program, U.S. Income 

Tax Return for Estates and Trusts, and

• Publication 1438-A, Supplement: Forms and Schedule 

Exhibits

FOREIGN Form 1041 with a foreign address can be filed electronically. 

ADDRESS 

ACCOUNTING You must figure taxable income on the basis of a tax year. A “tax 

PERIODS year” is an annual accounting for keeping records and reporting 

income expenses. The tax years you can use are: 

• A Calendar Year 

• A Fiscal Year 

You adopt a tax year when you file your first income tax return. 

You must adopt your first tax year by the due date (not including 

extensions) for filing a return for that year. 

The due date for a fiduciary return is the 15th day of the 4th month 

after the end of the tax year. 
Publication 1437 November 2006 6

SECTION 2 GENERAL INFORMATION, continued

PROCESSING Processing of returns includes the following Calendar and Fiscal 

year endings: 

• Calendar Year Returns – Fiduciary with a Calendar Year 

ending December 31, 2006. 

Example: Tax Year 2006 calendar year beginning January 

1, 2006 and ending December 31, 2006 the return is due 

April 15, 2007. 

NOTE: For Calendar Year returns the Tax Period Beginning 

and Tax Period Ending should not be entered on the Form 

1041 (Record Layout Fields #0010 and #0010 and 0020); 

• Fiscal Year Returns - Fiscal years ending in January 

through June 30, 2007. 

Example: Tax Year 2006 return beginning February 1, 2006 

and ending January 31, 2007 the return is due May 15, 

2007. Tax Year 2006 return beginning July 1, 2006 and 

ending June 30, 2007 the return is due October 15, 2007. 

NOTE: The Tax Period Beginning and Tax Period Ending 

do not have to be the first or last day of the month. 

If a return has a Fiscal Year ending after June 30, 2007, it 

cannot be filed electronically. 

No extensions to e-file are granted/approved for 1041 Fiscal 

Year Returns with a tax period ending June through 

December 2007. 

AMENDED The current 1041 e-file Program does not accept amended returns 

RETURNS electronically. To correct an error(s) on a Form 1041 return that 

was filed electronically for the current or prior tax year, the 

amended return must be filed on paper and mailed to the IRS 

Center where the estate or trust paper return is filed. 
Publication 1437 November 2006 7

SECTION 2 GENERAL INFORMATION, continued

 

SHORT TAX A Short Tax Year is a tax year of less than 12 months. A short 

YEAR period tax return may be required when you (as a taxable entity): 

• Are not in existence for an entire tax year; or 

• Change your accounting period. 

Even if you (a taxable entity) were not in existence for the entire 

year, a tax return is required for the time you were in existence. 

The requirements for filing a return and figuring the tax are 

generally the same as the requirements for a return for a full tax 

year (12 months) ending on the last day of the short tax year. 
Publication 1437 November 2006 8

SECTION 3 COMPOSITION OF THE RETURN 

TAX RETURN U.S. Income Tax Return for Estates and Trusts, Form 1041, for 

DATA electronic filing consists of tax return data transmitted to the IRS 

using electronic transmission with the required paper documents, 

such as signatures, documents prepared by third parties, etc. 

Summarizing, the tax return must contain the same information as 

a return filed on paper. 

 

The following forms must be filed electronically with the 1041 

Return and cannot be attached to Form 8453F, unless otherwise 

specified in Section 11 under SIGNATURE FORM PROCEDURES 

(FORM 8453-F). 

 

NOTE: See COMPOSITION OF THE RETURN, Page 12, for 

additional information regarding the number of certain forms 

or schedules allowed with an electronic return. 
Publication 1437 November 2006 9

ACCEPTABLE 

FORMS, 

SCHEDULES 

AND 

STATEMENTS 

Form 1041 

Schedule C 

(Form 1040) 

Schedule C- 

 EZ 

(Form 1040) 

Schedule D 

(Form 1041) 

Schedule E 

(Form 1040) 

Schedule F 

(Form 1040) 

Schedule H 

(Form 1040) 

Schedule J 

(Form 1041) 

Schedule K-1 

(Form 1041) 

Form 1116 

Form 2210 

Form 2210-F 

Form 2439 

Form 3468 

Form 3800 

Form 4136 

Form 4255 

Form 4562 

U.S. Income Tax Return for Estates and Trusts 

Profit or loss From Business 

Net Profit From Business 

Capital Gains and Losses 

Supplemental Income and Loss 

Profit or Loss From Farming 

Household Employment Taxes 

Accumulation Distribution for a Complex Trust 

Beneficiary’s Share of Income, Deductions, 

Credits, Etc. 

Foreign Tax Credit 

Underpayment of Estimated Tax by Individuals, 

Estates and Trusts 

Underpayment of Estimated Tax by Farmers 

And Fishermen 

Notice to Shareholder of Undistributed Long Term 

Capital Gains 

Investment Credit 

General Business Credit 

Credit for Federal Tax Paid on Fuels 

Recapture of Investment Credit 

Depreciation and Amortization 
Publication 1437 November 2006 10

ACCEPTABLE 

FORMS, 

SCHEDULES 

AND 

STATEMENTS 

Form 4684 

Form 4797 

Form 4835 

Form 4952 

Form 4970 

Form 4972 

Form 5884 

Form 5884-A 

Form 6198 

Form 6252 

Form 6478 

Form 6765 

Form 8082 

Form 8271 

Form 8275 

Form 8275-R 

Form 8582 

Form 8582 

Form 8582-CR

Form 8586 

Casualties and Thefts 

Sales of Business Property 

Farm Rental Income and Expenses 

Investment Interest Expense Deduction 

Tax on Accumulation Distribution of Trusts 

Tax on Lump-Sum Distributions 

Work Opportunity Credit 

Credits for Employers Affected by Hurricane Katrina, Rita or 

 Wilma 

At-Risk Limitations 

Installment Sale Income 

Credit for Alcohol Used as Fuel 

Credit for Increasing Research Activities 

Notice of Inconsistent Treatment Administrative Adjustment 

Request 

Investor Reporting of Tax Shelter Registration Number 

Disclosure Statement 

Regulatory Disclosure Statement 

Passive Activity Loss Limitations 

Worksheet 

Passive Activity Credit Limitations 

Low Income Housing Credit 
Publication 1437 November 2006 11

ACCEPTABLE 

FORMS, 

SCHEDULES 

AND 

STATEMENTS 

Form 8609-A 

Form 8801 

Form 8820 

Form 8824 

Form 8829 

Form 8860 

Form 8864 

Form 8874 

Form 8881 

Form 8882 

Form 8886 

Form 8896 

Form 8913 

Annual Statement of Low-Income Housing Credit 

Credit for Prior Year Minimum Tax – 

Individuals, Estates and Trusts 

Orphan Drug Credit 

Like-Kind Exchanges 

Expenses for Business Use of Your Home 

Qualified Zone Academy Bond Credit 

Bio-Diesel and Renewable Diesel Fuels Credit 

 

New Markets Credit 

Credit for Small Employer Pension Plan Startup Costs 

Credit for Employer-Provided Childcare Facilities and 

Services 

Reportable Transaction Disclosure Statement 

Low Sulfur Diesel Fuel Production Credit 

Credit for Federal Excise Tax Paid 

 
Publication 1437 November 2006 12

SECTION 3 COMPOSITION OF THE RETURN, continued

TYPES OF The following are data records that can be transmitted electronically 

RECORDS with the 1041 return and associated forms and schedules. 

• Statement Record – Statement Records are only used 

when the number of data items exceeds the number that 

can be contained in the blank provided on the printed form 

or schedule. Data must be provided in a separate 

Statement Record. A Statement Record can be required to 

explain certain entries on a form or schedule. 

• Preparer Note Record – The Preparer Note Record is to 

provide additional voluntary information related to the return 

but not required to be attached to the return. 

• Election Explanation Record – The Election Explanation 

Record can be used when the taxpayer makes an election 

for certain tax treatment, status, exception or exemption 

based on an instruction for the tax form or in a related tax 

publication when there is no official IRS form designed for 

that purpose. 

• Regulatory Explanation Record – The Regulatory 

Explanation Record can be used when the taxpayer cites a 

specific regulation for certain tax treatment, status, 

exception or exemption when there is no official IRS form 

designed for that purpose. 

• Summary Record – The Summary Record or Schedule K-1 

Summary Record will contain filer identification data, counts 

of the schedules, forms and statements included in one 

return, and indicators for paper documents attached to 

Form 8453-F. 

• Recap Record – The Recap Record cross-references the 

transmitter’s information from the first record of the 

Transmission Record. It contains a field that specifies the 

Total Return count for all the records submitted within the 

transmission. 
Publication 1437 November 2006 13

SECTION 3 COMPOSITION OF THE RETURN, continued

• Payment Record – Electronic Funds Withdrawal Direct 

Debit Payment Record. 

• State Return Record – New York (NY) only. 

NOTE: See Publication 1438, for additional information 

on the Types of Records that can be filed 

electronically. 

THE PAPER Form 8453-F, U.S. Estate or Trust Income Declaration and 

PART OF THE Signature for Electronic Filing is the paper document required 

RETURN when filing the Form 1041 return electronically. 

Paper attachments for the return will include tax forms other than 

the Form 1041 that require a signature(s) and other supporting 

documentation. These items must be attached to the signed Form

8453-F. They include other documents that are: 

• not required by the IRS and are voluntarily included by the 

fiduciary or the participant as supporting material; 

• not IRS forms or schedules; 

• not covered in this Section, under Acceptable Forms and 

Schedules;

• in excess of the limits that are allowed for Schedule K-1 

statements and statements for all other forms and 

schedules, example: Disclosure Statements 

If more than one of the forms or schedules listed needs to be filed 

with the estate or trust return, the entire return must be filed on 

paper. 

Schedule D Form 5884 

Form 2210 Form 6478 

Form 2210F Form 6765 

Form 3468 Form 8582 

Form 3800 Form 8582-CR 

 Form 4136 Form 8586 

Form 4797 Form 8801 

Form 4952 Form 8820 

Form 4970 Form 8830 
Publication 1437 November 2006 14

SECTION 4 EXCLUSIONS 

TYPES OF The following types of estate and trust returns cannot be filed 

RETURN electronically: 

• Amended returns; 

• Fiscal year returns ending during any month after June 30 of 

the current processing year. 

• Delinquent returns (except returns covered by an extension 

of time to file, which was submitted to the service center 

where the taxpayer would normally file a paper return). 

Extensions are allowed as long as the extended due date is 

not later than October 15 of the processing year; 

• Returns with dollar and cent entries—only whole dollar 

amounts are accepted; (Round entries to whole dollars only 

upon output; computed percentage distributions on 

Schedules K-1 (Form 1041) may not balance due to this 

rounding.); 

• Returns with Powers of Attorney (POA), and the IRS does 

not have a POA on file. In order to file electronically, the 

POA should be filed prior to the transmission of the 

electronic filed return. 

NOTE: POA must be submitted on paper to the IRS Center 

where the taxpayer would normally file a paper 

return. The POA must be submitted at least 6 weeks 

prior to transmitting a return that includes the Power 

of Attorney. 

• Returns filed under Sections 6020(b) of the Internal Revenue 

Code; 

• Fiscal Year Returns with extension dates after June 30 of 

the current year; 
Publication 1437 November 2006 15

SECTION 4 EXCLUSIONS, continued 

• Fiscal Year Short Period Returns; 

• Fiscal Year Final Returns; 

• Returns with any dollar amount greater than 

$99,999,999,999; 

• Tentative returns; 

• Family trust returns (except those filed by a bank); 

• Bankruptcy estate returns; 

• Returns with refund amounts equal to or great than 

$1,000,000 

NOTE: Fiduciaries with a Fiscal Year Return, a Short Period 

Return ending on a month prior to December 31, or a 

Fiscal Year Final Return, cannot file electronically. 

However, fiduciaries with any type of Fiscal Year Return 

with a tax period ending on or before June 30, 2007

(January 2007 – June 2007) may file electronically. 

No extensions are granted/approved for Fiscal Year returns 

with a tax period ending June through December 2007. 

FAILURE TO Parties involved in the transmission of electronic filing of Form 1041 

FILE PENALTIES returns may be liable for failure to file penalties due to missing, 

incomplete or unsigned signature forms. 
Publication 1437 November 2006 16

SECTION 5 ACKNOWLEDGMENT (ACK) PROCESS 

ACK IRS acknowledges each transmission of electronic return data. 

FILE A return can be acknowledged (ACK) as accepted, even though it 

has not been through any math checks. There are two types of 

ACK files, the Transmission ACK File and the Validation ACK File. 

The IRS will provide an outbound mailbox for pick up of ACK files 

by the transmitter. 

 

 

TRANSMISSION The Transmission ACK File is generated if there is a problem in the 

ACK basic formatting of the entire file. If a Transmission ACK File is 

generated, individual forms and schedules are not validated. This 

ACK file should be available within two workdays after receipt of a 

transmitted file. 

 

VALIDATION The Validation ACK File is generated when there is a problem 

ACK within the return. The ACK file counts for the number of 

Forms 1041 and related forms and schedules. The file provides the 

reject code numbers for up to 96 errors per return. 

PROBLEMS If the following situations occur after returns have been transmitted 

AFTER to the Enterprise Computing Center, the transmitter should 

TRANSMISSION immediately contact the Ogden Submission Processing Center at 

1-866-255-0654:

• The transmitter does not receive a transmission 

acknowledgment file within two (2) workdays; or 

• The transmitter receives an acknowledgment for returns or 

records that were not transmitted on the designated 

transmission; or 

• The transmitter receives an acknowledgment, but it does not 

include the reject code (s) for forms transmitted. 
Publication 1437 November 2006 17

SECTION 6 METHODS OF PARTICIPATION

TYPE OF An Electronic Participant is considered in one or more categories or 

PARTICIPANTS business types listed below, depending on the specific function(s) 

the participant performs in relation to the estate or trust or IRS: 

• FIDUCIARY: A trustee of a trust; or an executor, 

administrator, personal representative, or person in 

possession of property of a decedent’s estate. It is the 

responsibility of the fiduciary to ensure that the return is 

transmitted to the Enterprise Computing Center in Memphis, 

TN. 

• ELECTRONIC RETURN ORIGINATOR (ERO): Originate 

the electronic submission of tax returns to the IRS. An ERO 

originates the electronic submission by: 

3⁄4 electronically sending the return to a transmitter 

that will transmit the return to the IRS; 

3⁄4 directly transmitting the return to the IRS; or 

3⁄4 providing a return to an Intermediate Service 

Provider for processing prior to transmission to the 

IRS.

NOTE: Please refer to Publication 1345 for additional 

information pertaining to ERO’s. 

 

• PAID PREPARER: A firm, organization, or individual who: 

3⁄4 deals directly with the estate or trust from which the 

return is due; 

3⁄4 prepares a return or collects return data for 

purposes of having electronic records of the Form 

1041, Schedules K-1 and related forms and 

schedules produced; or collects a prepared return 

for purposes of having electronic records of Forms 

1041, Schedules K-1 and related forms and 

schedules prepared; and 

3⁄4 obtains the fiduciary signature on Form 8453-F 

(See Section 11 for Form 8453-F Procedures) 
Publication 1437 November 2006 18

SECTION 6 METHODS OF PARTICIPATION, continued

• TRANSMITTER: Receives Form 1041 data from clients and 

transmits the data to IRS electronically, in a format IRS can 

process. 

• SOFTWARE DEVELOPER: Designs or produces software, 

used to: 

3⁄4 prepare returns; 

3⁄4 format Form 1041 return, Schedules K-1 and related 

forms and schedules according to IRS specification 

for electronic filing; or 

3⁄4 transmit the Form 1041 return and the electronic 

records for Schedules K-1 and related forms and 

schedules directly to IRS. 
Publication 1437 November 2006 19

SECTION 7 APPLICATION AND ENTITY REVIEW 

FORM 8633 The first step to participate in the program is to register on-line for 

APPLICATION e-services. Use e-Services to complete and submit an electronic 

application, Form 8633, Application to Participate in the IRS e-file 

Program. Or mail the paper version of the application to the 

address of the IRS Andover Submission Processing Center 

(ANSPC) shown below for processing. To ensure the application is 

processed timely, the IRS should receive the form at least 45 

calendar days before the entity transmits live returns electronically. 

The IRS will accept applications by mail. The Andover Submission 

Processing Center’s (ANSPC) mailing address is:

Internal Revenue Service 

Andover Campus 

Attn: EFU Acceptance 

P.O Box 4099 

Woburn, MA 01888-4099 

Overnight Mailing Address 

Internal Revenue Service 

Andover Campus 

Attn: EFU Acceptance 

Testing Stop 983 

310 Lowell Street 

Andover, MA 01810-0001 

WHO TO If you have a question regarding the application process, call 

CONTACT ASPC at 1-866-255-0654 (toll free). All foreign callers should call 

01-512-416-7750 (not toll free). 

If you or your organization participate in more than one of the IRS 

e-file for Business programs, we recommend that a single Form 

8633 be submitted which includes all of the returns that you file. 

 The Andover Campus will mail a letter annually to each 

 Participant assigning their Electronic Identification Number (ETIN) 

 and temporary password that is needed to logon and transmit test 

 data for the new filing season. An Electronic Filing Identification 

 Number (EFIN) will be assigned by the IRS to participate in the IRS 

 e-file program. 
Publication 1437 November 2006 20

SECTION 7 APPLICATION AND ENTITY REVIEW, continued 

Please refer to Publication 3112 for additional information on 

suitability checks and procedures for submitting and revising Form 

8633.

 

NOTE: If your provider role is an Electronic Returns Originator

(ERO) only, you will still need to fill out a form 8633 to 

be assigned an Electronic Filing Identification Number 

(EFIN) to participate in the IRS e-file program. 

ENTITY REVIEW Participants must ensure that entity information submitted on 

PROCESS the Form 8633 is correct. Entity information includes the name, 

address, telephone number (with contact name) of the participant 

and the Employer Identification Number (EIN). The data will be 

matched with the already existing IRS records. The participants will 

be notified of any discrepancies and asked to correct the 

problems(s) before Testing can begin. 

After review of the Form 8633 application, the IRS will assign an 

Electronic Transmitter Identification Number (ETIN), Electronic 

Filing Identification Number (EFIN) and a temporary password to 

each applicant. The ETIN will only be assigned if transmitting 

return(s). The ETIN and test password will be used to logon and 

transmit test data. Participants will be required to create a new 

password for their particular ETIN, the first time a login to the 

Electronic Management System (EMS) is initiated on or about 

December 4, 2006, the beginning of BATS testing. Participants will 

use your current password for this login. This includes new 

transmitters who receive their initial password in the mail and 

transmitters transmitting test or production. 
Publication 1437 November 2006 21

SECTION 8 BUSINESS ACCEPTANCE TESTING SYSTEM 

(BATS) AND ACCEPTANCE PROCEDURES 

BUSINESS Business Acceptance Testing System (BATS) is mandatory and

ACCEPTANCE required each year for all participants who develop software 

TESTING and/or transmit returns, (including partnerships that transmit their 

SYSTEM own return). The purpose of testing is to ensure that IRS can 

(BATS) receive and process the electronic returns. In preparation for 

processing Tax Year 2006 fiduciary returns, the IRS will 

accept test returns through BATS beginning 

December 4, 2006. 

 

Transmitters will subsequently be required to change their 

passwords upon login on or after 90 days have elapsed since their 

last password change. A lost, forgotten, or compromised password 

will require a call by the transmitter to the e-help desk to initiate an 

e-case for referral to an EMS Assistant to reset the password. 

Testing should begin at least sixty (60) days prior to live 

transmission of return(s) to allow ample time to resolve any testing 

problems prior to transmitting live returns. 

The software package used to prepare/transmit the return data 

must pass testing with the IRS prior to live transmissions. 

NOTE: Testing must be completed before the participant 

transmits live data. See Section 8, Test Scenarios. 

PRE This testing is performed during BATS. 

ENTITY Each transmission must include TRANA and TRANB.

TESTING Testers can send minimum of a return, i.e. 1041 pages 1 and 2, 

Summary Record, Recap Record. Return information above line 1, 

page 1 is required. Remainder of return may be blank. 

 
Publication 1437 November 2006 22

SECTION 8 BUSINESS ACCEPTANCE TESTING SYSTEM 

(BATS) AND ACCEPTANCE PROCEDURES, 

 continued 

READY TO TEST When applicants are ready to test, they must make arrangements 

with the Ogden Submission Processing Center Electronic 

Filing Section at 1-866-255-0654. 

TESTING Transmitters must make arrangements for a test transmission. 

REQUIREMENTS The test file must be transmitted using the same medium that will 

FOR be used to file the live returns electronically. A test file must be 

TRANSMITTERS similar to the types of returns the participant expects to transmit for 

live processing. For example, if a participant successfully transmits 

test data that contains records for Forms 1041, Schedules D and 

Schedule K-1; IRS will authorize the applicant to file these records 

only. 

In addition, transmitters using accepted software must complete an 

error-free communications test by transmitting two returns in 

separate transmissions in the same day. The two transmissions 

must have returns in sequential order. 

NOTE: Contact Ogden Submission Processing Center to 

schedule transmissions. 

After software developers have successfully completed BATS 

scenarios, transmitters must transmit two same day transmissions. 

The two transmissions must be three returns in the first 

transmission and two returns in the second transmission to check 

the sequential order. In addition, transmitters using accepted 

software must complete an error-free communications test by 

transmitting two returns in separate transmissions in the same day. 

The two transmissions must have returns in sequential order. 
Publication 1437 November 2006 23

SECTION 8 BUSINESS ACCEPTANCE TESTING SYSTEM 

(BATS) AND ACCEPTANCE PROCEDURES, 

 continued 

TESTING If the software packages and communication systems are used 

REQUIREMENTS by more than one transmitter, each must test consistent as 

FOR SOFTWARE described in Section 8, Page 21, Testing Requirements for 

DEVELOPERS Transmitters. 

Software developer’s submission of test files: 

• After acceptance, two same day transmissions must be 

made, three returns in the first transmission and two returns 

in the second to check the sequential order. 

• In some cases the software developer may test software 

specific return data. The software developer must notify the 

Ogden Submission Processing Center Tax Examiner and 

provide the information on the forms and schedules that will 

not be tested. The IRS will not allow these forms and 

schedules during live data transmissions. 

Computer software must provide the same software capabilities 

and, if applicable, identical data communications capabilities to all 

users. Other accepted participants may use software packages 

that test successfully. Software packages will only be authorized 

for those forms and schedules that were tested by IRS. 
Publication 1437 November 2006 24

SECTION 8 BUSINESS ACCEPTANCE TESTING SYSTEM 

(BATS) AND ACCEPTANCE PROCEDURES, 

 continued 

ACCEPTANCE The Ogden Submission Processing Center will process each test 

PROCEDURES transmission and communicate by telephone if necessary with the 

 applicant concerning their transmission. If the test file is not 

 correctly formatted, or if the test returns contain errors, the IRS will 

 notify the applicant regarding what errors were encountered on 

 each return. The applicant must then correct the software to 

 eliminate the errors and retransmit the test file. When the test file 

 is accepted, ANSC will send a letter of acceptance. This letter 

 will contain telephone number of the help desk and times to call 

 should the participant have any questions or problems regarding 

 the transmission of returns. Acceptance is valid only for the year 

 and for forms and schedules specified in the acceptance letter. 

 The IRS will inform participants when to begin transmitting live 

 data. 

TEST You are required to transmit test scenarios using the Form 1041

SCENARIOS return, Schedules K-1, and forms and schedules associated with 

the 1041 return. A test file consisting of at least 10 returns, but no 

more than 20 with the related forms, schedules and attachments 

must be transmitted. 

The testing requirements listed below are based on system 

changes as well as tax form (record layouts) and validation criteria 

changes for Tax Year 2006. Some of the testing requirements are 

optional. If any of the below criteria fall within the scope of the type 

of tax return you prepare, it is highly recommended that test 

scenarios be developed with the requirements provided below. 

1. If you plan to prepare returns claiming a Telephone Excise 

Tax credit, create a scenario to test a 1041 return with new 

Form 8913. 

2. Several forms have changed for Tax Year 2006. If any of 

the following forms are within the scope of returns you 

prepare, create a scenario to test a 1041 return with 

changes made to the following forms: 

2210, 3468, 3800, 4136, 6478, 6765, 8586, 8829, 

8830, 8864, 8874, 8881, 8882, and 8896 
Publication 1437 November 2006 25

SECTION 8 BUSINESS ACCEPTANCE TESTING SYSTEM 

(BATS) AND ACCEPTANCE PROCEDURES, 

 continued 

3. If the following new Reject Codes are within the scope of 

returns you prepare, create a scenario to test the Reject 

Code(s) as applicable. See Publication 1438 for additional 

information regarding Reject Codes. 

556, 558, 562, 123, 126, 231, 247, 252, 319, 320, 

447, 551, 554, 559, 774, 850, 853, 854, 855, 856, 858 

4. Major changes have been made to Form 4136 for Tax Year 

2006. If Form 4136 is used within the scope of the types of 

returns filed on behalf of your clients, create a scenario to 

test the changes. See Publication 1438, SIGNIFICANT 

CHANGES SUMMARY, for a detailed list of the changes. 

5. If foreign addresses are within the scope of returns you 

prepare, create a scenario to test the addition of new fields 

0095, 0097, 0110 and 0115 added to the Form 1041 record 

layout, to allow returns with foreign addresses to be filed 

electronically. 

6. Create scenarios to test the following most common reject 

codes: 

Reject Code Description Errors

 122 EIN/Name Control 26,524 

 Mismatch 

 224 Missing street address 22,161 

 12 Short Period Returns 19,751 

 Fields 0210, 0220 blank 

 K-1 Beneficiary ID 14,092 

 Not numeric or correct 

 Literal 

 240 City field missing 12,215 

 128 Duplicate returns 4,461 

 916 EFIN missing or 2,820 

 Invalid (Summary Record) 

 256 ZIP Code not numeric 2,431 

 (1041 and K-1) 

 
Publication 1437 November 2006 26

SECTION 9 FILING REQUIREMENTS AND RESPONSIBILITIES 

 

CONTINGENCY If the electronic filing system is inoperative for an extended period 

PLAN of time, the Ogden Submission Processing Center, Electronic Filing 

Section will provide contingency instructions to participants. 

 

INTEGRITY Participants must maintain a high degree of integrity and accuracy 

AND in order to participate in the program. 

ACCURACY 

REVOCATION IRS reserves the right to revoke the electronic filing privilege 

of any participant who does not maintain an acceptable level 

of quality, or who deviates from the procedures and 

specifications set forth in the following publications for Tax 

Year 2006:

• Publication 1438, File Specification, Validation Criteria and 

Record Layouts for the 1041 e-file Program, U.S. Income

Tax Return for Estates and Trusts 

• Publication 1437, Procedures for the 1041 e-file Program, 

U.S. Income Tax Return for Estates and Trusts 

• Publication 1438-A, (Supplement) for the 1041 e-file 

Program, Participants U.S. Income Tax Return for Estates 

and Trusts 

 

SECURITY Participants are responsible for the security of all transmitted data. 

TRANSMITTING Estate and Trust returns that are transmitted electronically must have 

THE the Form 8453-F mailed within three (3) business days after the 

RETURN return is accepted. The Form 8453-F must not be mailed for those 

returns that are rejected or identified as duplicates. The Estate or 

trust must ensure that the Form 8453-F is completed, signed, and 

that required forms, schedules, and other items are attached before 

mailing the form to the IRS. 

 
Publication 1437 November 2006 27

SECTION 9 FILING REQUIREMENTS AND RESPONSIBILITIES, 

 continued

START-UP DATE Effective January 22, 2007, the IRS will begin to accept and 

process TY 2006 Estate and Trusts Returns.

 Participants (Transmitters) must contact the Ogden Submission 

Processing Center to inform them of where they intend to begin 

transmitting Form 1041 returns, Schedules K-1 and related forms 

and schedules electronically. IRS will not accept live return data 

before the start-up date (January 22). 

DRAIN TIMES January 22, 2007 – February 28, 2007

One (1) Drain – 7:00 p.m. Central Time, Monday – Saturday 

March 1, 2007 – April 30, 2007 

Two (2) Drains – 1:00 p.m. and 7:00 p.m. Central Time 

Monday – Saturday 

May 1, 2007 – October 20, 2007 

One (1) Drain – 7:00 p.m. Central Time, Monday – Friday 

REQUIRED The electronic data must meet all the consistency tests required 

CONSISTENCY as specified in this publication and Publication 1438. 

TESTS The fiduciary or paid preparer must correct the return data prior to 

transmitting the return to the IRS. If the transmitter corrects any 

material, he or she becomes the preparer as explained in 

Section 6. 

REQUIREMENTS In addition to the requirements outlined in Section 8, 

FOR SOFTWARE Software Developers must:

DEVELOPERS 

• correct software errors that cause electronically filed data to 

reject; 

• distribute their software corrections, quickly, to all 

participants who use their software package. 
Publication 1437 November 2006 28

SECTION 9 FILING REQUIREMENTS AND RESPONSIBILITIES, 

 continued

DUE DATES Participants must be aware of and adhere to the following dates 

when transmitting the estate or trust return electronically: 

• December 4, 2006 is the date to begin transmitting test 

scenarios. 

• January 22, 2007 is the date to begin transmitting live 1041 

e-file returns for Tax Year 2006. 

• April 15, 2007 is the due date for electronic filing of Form 

1041, Schedules K-1 and related forms and schedules and 

is the same as Forms 1041 filed on paper. 

 NOTE: If April 15th falls on a Saturday, Sunday or 

holiday, the due date of the return is the next business 

day. 

On Monday, April 16, 2007 residents of Maine and 

Massachusetts will celebrate a holiday known as 

Patriot’s Day. If you are a 1041 e-file business taxpayer, 

software developer and/or transmitter who resides or 

whose company is located in Maine or Massachusetts, 

you have an extra day to file your Business Income Tax 

Return. The filing due date for residents of Maine and 

Massachusetts ONLY is April 17, 2007. 

• September 30, 2007 is the last day to transmit test 

transmissions (scenarios). 

• October 15, 2007 is the last day the IRS will accept initial 

1041 e-file returns for Tax Year 2006. 

NOTE: If the last day to file falls on a Saturday, Sunday

or holiday, the due date of the return is the next 

business day.
Publication 1437 November 2006 29

SECTION 9 FILING REQUIREMENTS AND RESPONSIBILITIES, 

 continued 

• October 20, 2007 is the last day the IRS will accept 

retransmissions of corrected Form 1041 returns that were 

previously transmitted but were rejected.

 

NOTE: If the last day to file falls on a Saturday, Sunday or 

holiday, this will be the due date of the return, and not 

the next business day. 

• From the due date of the return, (April 15th), transmitters are 

allowed up to (5) work days to successfully retransmit 

electronic return data that was timely transmitted, but was 

rejected. The (5) work days to retransmit may not always 

apply to the extended due date of the return. 

• If IRS has not acknowledged a transmission of Form 1041 

returns, Schedules K-1 and other related forms and 

schedules within 2 working days after transmitting the data, 

the transmitter should immediately contact the e-Help Desk at 

the Ogden Submission Processing Center. The telephone 

number is: 

1-866-255-0654 

• Transmitters should also contact the Ogden Submission 

Processing Center when the Electronic Acknowledgment 

contains a reject code for a return/schedule that was not 

transmitted. 

EXTENSIONS Estates or trusts that expect to file returns late must apply for an

Automatic 6-Month Extension of Time to File Certain Business 

Income Tax, Information, and Other Returns. Form 7004 

replaces Forms 2758, 8736 and 8800. These extension forms are 

now obsolete. 

 

WHEN TO Form 7004 must be filed on or before the due date of the Form 

FILE 1041, in most cases April 15. 
Publication 1437 November 2006 30

SECTION 9 FILING REQUIREMENTS AND RESPONSIBILITIES, 

 continued 

WHERE Form 7004 should be mailed separately to the Service Center 

TO FILE where filers would normally send their paper returns. 

 Note: Extension Form 7004 does not extend the time for 

payment of tax. Extension Form 7004 should not be 

attached and mailed with Form 8453-F. 

ADDRESS If the Estate or Trust changes its address, Form 8822, Change of 

CHANGE Address, must be sent to the Ogden Submission Processing Center 

at the address listed in Section 12, under Method of Delivery. 

CHANGING After IRS accepts an electronic return, it cannot be recalled or 

ENTRIES ON intercepted in process. If the participant or estate or trust needs 

THE RETURN to change any entries after the return has been acknowledged as 

accepted; an amended or corrected return must be filed on paper. 

The amended or corrected return should be mailed to the IRS 

Center where you would normally file your paper return. (See Form 

1041 instructions for more information) 
Publication 1437 November 2006 31

SECTION 10 FEDERAL/STATE REQUIREMENTS 

GENERAL Federal/State Electronic Filing is a cooperative one-stop filing 

DESCRIPTION program between IRS and state tax administration agencies. This 

program allows the filing of both Federal and State income tax 

returns through the IRS Electronic Filing System. Only the State 

return file will be forwarded to the State. All federal information the 

filer wants to share with the State must be included in the State 

record. To assist in inclusion of federal information in the state file, 

the IRS created State Attachment E to accommodate federal data, 

including Schedule K-1. The tax return data must be placed into a 

format for transmission as specified by the IRS and the state. New

York will be the only participant for Tax Year 2006. 

 

RETURN A combined return will be rejected in its entirety if it 

REJECTION contains any error conditions specified in Publication 1438. If the 

error(s) is of such a nature that it can be corrected and the return(s) 

processed, the combined return may be retransmitted to ECC in 

Memphis. The participant may elect to retransmit the Federal tax 

portion of a rejected return and then file the State return using State 

tax paper forms.

STATE RETURN The State return shall be available to the State within two hours 

after receipt of the combined state files from the State Retrieval 

System (SRS). 

After the receipt acknowledgment has been provided to the 

transmitter, the IRS is responsible for making the accepted 

combined return available to the State agency. 

Once the state agency has successfully completed the 

transmission session and received the return, the responsibility for 

data integrity is that of the State agency. 

Should subsequent errors of any type be detected during State 

processing, they are resolved between the State agency and the 

fiduciary using normal State paper procedures. 
Publication 1437 November 2006 32

SECTION 10 FEDERAL/STATE REQUIREMENTS, continued 

FED/STATE Participation in the 1041 Fed/State e-file program gives IRS 

authorization to release Federal tax information common to 

the Federal and State return to the designated State along with 

the information that is only required for State tax purposes. 

REQUIREMENTS In order to file an electronic state Fiduciary Income Tax Return the 

FOR following conditions must be met: 

ELECTRONIC

FILING

• The state return must be electronically filed with the federal 

return through the Enterprise Computing Center; 

• The return must be filed between January 22, 2007 and April 

15, 2007; 

• The return data is for New York. 

OVER When preparing electronic returns, fiduciaries may elect to have 

PAYMENTS their overpayments: 

• Applied to their 2007 estimated tax, 

• Sent to them in the form of a refund check, or 

• Split – part applied to their 2007 estimated tax and the 

remainder issued in the form of a refund check. 

 
Publication 1437 November 2006 33

SECTION 10 FEDERAL/STATE REQUIREMENTS, continued 

EXCLUSIONS Returns with the following criteria cannot be filed 

FROM electronically:

ELECTRONIC

FILING 

• Amended return; 

• Calendar Year Returns (January through December) ending 

prior to December 31, 2006; 

• Returns for part-year residents of a state, or cities 

associated with that particular state; 

• Returns reporting liabilities for nonresident earnings tax for 

cities associated with the particular state; 

• Returns for decedents with Social Security Numbers in the 

following ranges: 

000-00-0000 through 001-00-9999 

691-00-0000 through 699-99-9999 

764-00-0000 through 999-99-9999

• Returns with a Power of Attorney currently in effect in which 

the refund is to be sent to a third party, or 

• Returns with any correspondence requesting special 

consideration or procedures. 

• Any State other than New York 

RETURN The State return Header and Attachments must be received 

SEQUENCE immediately following the Federal return and preceding the 

ORDER summary record.

ACK IRS acknowledges receipt of State data with Federal Form 

REPORT 1041 and passes this data on to the appropriate State for further 

validation. 
Publication 1437 November 2006 34

SECTION 11 SIGNATURE FORM PROCEDURES (FORM 8453-F)

PURPOSE OF Form 8453-F serves the following purpose: 

FORM 8453-F 

• authenticates the return; 

• authorizes the participant to transmit via a third-party 

transmitter;

• authorizes the transmitter to transmit the return on behalf of 

the estate or trust; 

• serves as a transmittal for related forms and schedules that 

require signatures different than the signature that 

authenticates the return; and 

• authorizes an Optional Electronic Funds Withdrawal 

payment. 

Note: Form 8453-F is only needed when filing a Fiduciary

Return electronically, not when filing a paper return

REQUIRED The fiduciary and the paid preparer’s if applicable, 

SIGNATURES signature’s are required on Form 8453-F, U. S. Estate or Trust 

Income Tax Declaration and Signature for Electronic Filing. 

All Forms 8453-F must be signed and mailed within three business 

days after the acceptance date of the original electronic 

transmission. 

 

FIDUCIARY’S If the electronic filing participant is not the fiduciary, the 

AUTHORIZATIONparticipant must get the fiduciary’s authorization to file the returns 

electronically, and if applicable, to transmit, the returns through a 

third party. To get this authorization, the participant must have the 

same person sign Form 8453-F who is authorized to sign a paper 

return. 

MULTIPLE TAX If a fiduciary or representing officer is authorized to sign more than 

RETURN one Form 1041 return, a Multiple Tax Return Listing (MTRL) may 

LISTING be with Form 8453-F in lieu of sending separate Forms 8453-F. 

The MTRL should include the date, transmitter’s name and 

telephone number, the 5 digit ETIN and the page number. 
Publication 1437 November 2006 35

SECTION 11 SIGNATURE FORM PROCEDURES (FORM 8453-F) 

 continued

The listing should be formatted to display the 9 digit EIN, Name 

Control, Tax Period, Total Income, Income Distribution, Taxable 

Income, Total Tax and Tax Due/Overpayment of the estate or trust. 

A Multiple Tax Return Listing with a maximum of 5000 estates or 

trusts may be attached to each Form 8453-F. The signature 

document for multiple returns must include one (1) Form 8453-F 

signed by the fiduciary or authorized representative. 

Landscape layout maybe used to accommodate 12 font requirement. 

 

Example: 

TRUST NAME TAX TOTAL INCOME TAXABLE TOTAL TAX

EIN CONTROL PERIOD INCOME DISTR. DEDUCT. INCOME TAX OVERPAYMENT DUE

 

 

BOUGHT/SOLD Participants who file Form 8453-F with multiple listings that include 

 pooled mortgage accounts should send in a separate form 8453-F 

and listing for all returns that reflect either bought or sold 

mortgages. 

NOTE: Returns listed on the bought or sold multiple listing 

should have an attached Form 8453-F recorded 

as bought or sold. 

 

POSTMARK The package that contains Forms 8453-F must be postmarked 

DATE within three business days after receiving the Acknowledgement 

File identifying which returns were accepted. 

 

ELECTRONIC If the electronic postmark is on or before the prescribed filing 

POSTMARK deadline but the return is transmitted after that filing deadline, the 

IRS will deem the return to be timely filed based on the electronic 

postmark date/time supplied by the transmitter. If the electronic 

postmark is dated after the prescribed filing deadline, the actual 

date of receipt by the IRS of the electronic return will be considered 

the filing date for that return. See Publication 1438, Summary

Record, regarding the Electronic Postmark. 

 
Publication 1437 November 2006 36

SECTION 11 SIGNATURE FORM PROCEDURES (FORM 8453-F) 

 continued

SUBSTITUTE Participants must use the official Form 8453-F or an approved 

FORM 8453-F substitute form that duplicates the official form in format, language,

content, color and size. Use of an unapproved form will result in 

suspension from the program. Participants must send a sample of 

their proposed substitute form to the following address for approval: 

Internal Revenue Service SE:W:CAR:MP:FP:S:SP 

Substitute Forms Program Coordinator 

1111 Constitution Avenue, NW Room 6411, IR 

Washington, DC 20224 

PROBLEMS The fiduciary or paid preparer must resolve any problems 

RELATING TO relating to Form 8453-F. If IRS determines that a Form 8453-F is 

FORM 8453-F missing or unsigned, the preparer must provide IRS with a legible 

copy of the signed form from their records, or obtain a signed Form 

8453-F from the taxpayer. This should be resolved within 15 days

of the IRS request for the form. 

FAILURE TO Parties involved in the transmission of electronic filing of Form 1041 

FILE PENALTIES returns may be liable for failure to file penalties due to missing, 

incomplete or unsigned signature forms. 
Publication 1437 November 2006 37

SECTION 12 WHERE TO SEND FORM 8453-F AND PAPER 

 DOCUMENTS 

PACKAGING The paper Form 8453-F, and any other required paper documents, 

INSTRUCTIONS must be sent to the Ogden Submission Processing Center address 

listed below under “Method of Delivery”, using envelopes or 

cartons, as volume or preference dictates. 

NOTE: For electronic transmissions, the package containing 

Form(s) 8453-F and appropriate paper attachments, 

must be postmarked within 3 business days after 

receiving the Acknowledgement File identifying which 

returns were accepted and contain only IRS accepted 

e-filed tax return information. 

SHIPPING AND Shipping and packaging instructions for electronically filed 

PACKAGING Form 1041. The sequence of the items in a package must be as 

follows: 

• the signed Form(s) 8453-F; 

• the corresponding paper attachments for each return (i.e. 

multiple return listing) attached to the corresponding Form 

8453-F. 

METHOD OF Envelopes, packages or cartons containing Form 8453-F and other 

DELIVERY paper attachments, sent by U.S. Postal Service should be sent to: 

Internal Revenue Service 

Ogden Submission Processing Center 

Mail Stop 6052 

Ogden, UT 84201 

If sending Form 8453-F and other paper attachments through a 

vendor other than the U.S. Postal Service, contact OSPC ELF Unit

at 1-866-255-0654 for mailing address. 
Publication 1437 November 2006 38

SECTION 12 WHERE TO SEND FORM 8453-F AND PAPER 

 DOCUMENTS, continued 

RESUBMISSION If the participant submits the return on paper after attempting 

ON PAPER to file it electronically, or if at the end of the filing season 

 (October 20, 2007) a participant is unable to successfully retransmit 

corrected returns electronically, the participant should attach a 

letter to the paper return that explains why the return was submitted 

on paper. A copy of the Acknowledgment File sent by the Ogden 

Submission Processing Center, to the transmitter concerning the 

return(s) transmitted, should also be included. A copy of this ACK 

FILE is needed to bypass assessment of any late-filing penalties. 

In order for the return to be filed timely, the entire paper return 

(including a copy of the ACK FILE should be mailed within 10 work 

days from the date the return(s) were rejected electronically. The 

paper return should be mailed to the IRS center where the estate or 

trust would normally file a paper return. 
Publication 1437 November 2006 39

SECTION 13 BALANCE DUE RETURNS: TAX PAYMENT

BALANCE DUE Returns containing a money amount on Line 27 (Tax Due), Page 1 

RETURNS of Form 1041 are considered balance due returns. 

Balance due returns (with or without payments) do not have to be 

transmitted separately from returns with no balance due. 

 

PAYMENTS Payments for Form 1041 e-file returns can be made in any of the 

following ways: 

• Electronic Funds Withdrawal (EFW), allows for direct debit 

payments with balance due returns; 

• Electronic Federal Tax Payment System (EFTPS); 

• As estimated tax payments, with Form 1041-ES, Estimated 

Income Tax for Estates and Trusts. The payments should 

be submitted according to Form 1041-ES instructions; and 

• As a remittance sent after the return is filed, but by the return 

due date (i.e., the return can be transmitted prior to the 

return due date, however, the remittance does not have to 

be submitted until the return due date.) 

ELECTRONIC An optional Electronic Funds Withdrawal (EFW) is available with 

FUNDS balance due returns. The fiduciary may authorize the U.S. 

WITHDRAWAL Department of Treasury (through a Treasury Financial Agent) to 

transfer money from their bank account to the Treasury account. 

The fiduciary must sign the Jurat on Form 8453-F to authorize the 

agreement between IRS and their Financial Agent to initiate an 

EFW (direct debit payment). 

• EFW payments will be withdrawn in a single transaction, not 

installments. 

• In the event the financial institution is unable to process the 

electronic funds withdrawal transaction, the fiduciary will be 

responsible for the tax payment in addition to penalties and 

interest. 
Publication 1437 November 2006 40

SECTION 13 BALANCE DUE RETURNS: TAX PAYMENT, 

continued

• In the event Treasury causes an incorrect amount of funds to 

be withdrawn from the bank account, Treasury is responsible 

for returning any improperly transferred funds. 

The payment record must contain the following information: 

• Bank’s Participant’s Employer Identification Number (EIN); 

• Routing Transit Number (RTN), (9 Numeric Characters); 

• Bank Account Number, (1-17 Alphanumeric Characters or 

Hyphen”-“); 

• Bank Account Type, (Checking (1) or Savings (2); 

• Payment Amount, (Whole Dollar Amounts Only); 

• Fiduciary’s Daytime Telephone Number; and 

• Requested Payment Date, no later than one day after the 

return receipt date or equal to the return receipt date 

EFTPS Form 1041 payments (estimated, balance due, and subsequent) 

can be made through the Electronic Federal Tax Payment System 

(EFTPS). Contact an EFTPS Financial Agent at 800-555-4477 or 

800-945-5300 for information. 

 NOTE: An extension of time to file does not grant an 

extension to pay tax. 
Publication 1437 November 2006 41

SECTION 14 DISTRIBUTIONS OF COPIES 

PARTICIPANT’S The participant (preparer) must keep a copy of the Form 1041 

COPY return, Schedules K-1 and Form 8453-F, U.S. Estate or Trust 

Income Tax Declaration and Signature for Electronic Filing. The 

copy of the electronic return may be kept on computer media. 

CLIENT’S COPY The participant should advise clients to keep copies of all materials 

filed with the Ogden Submission Processing Center. The copy of 

the electronic return can be a copy of the official forms or in a 

format designed by the participant, in which each data item refers 

to the line entries on the official forms. The copy can be on 

computer media. The computer media copy must be composed 

carefully to avoid violating disclosure rules. 

NOTE: Anyone who receives a copy will be given ONLY the 

information he or she is entitled to receive. 

ELECTRONIC The participant (Transmitter) should keep a copy of the Electronic 

ACK Acknowledgment (ACK) (See, Section 5, Acknowledgment 

Process) received from the Ogden Submission Processing Center 

for 3 months to facilitate inquiries. If the participant is also the paid 

preparer or the fiduciary, the normal retention periods for tax return 

information applies, as specified in the Internal Revenue Code. 

FIDUCIARY’S If the transmitter and the fiduciary are not the same, the transmitter 

COPY must give the fiduciary a copy of all materials that are described 

above and filed with IRS for the estate or trust. 

 

IRS COPIES The participant must give IRS access to all materials that the 

participant must keep to comply with these procedures. 
Publication 1437 November 2006 42

SECTION 15 ADVERTISING STANDARDS 

RESTRICTIONS Preparers and transmitters shall comply with the advertising and 

solicitation provisions of 31 C.F.R. Part 10 (Treasury Department 

Circular No. 230) with respect to their capability to file electronic 

returns. 

ENDORSEMENT IRS endorsement must not be implied. Acceptance to participate in 

the program does not mean that the Internal Revenue Service 

endorses the computer software or quality of services provided. 

Therefore, any public communication in which a participant’s 

electronic filing capability is referenced, whether through publication 

or broadcast, must clearly indicate that IRS acceptance of the 

participant for electronic filing does not constitute an endorsement 

or approval of the quality of tax preparation services provided. 
Publication 1437 November 2006 43

SECTION 16 SAFEGUARDING THE 1041 e-FILE PROGRAM 

PROGRAM All participants must fulfill program requirements to continue 

REQUIREMENTS participation in the 1041 e-file Program. Program requirements are 

included in Revenue Procedure 2000-31, this publication and in 

other publications and notices that govern the IRS e-file Programs. 

Adherence to all requirements is expected of all participants 

regardless of where they are published. Some requirements are 

specific to the category of the participant and are included in 

appropriate sections of this publication. 

MONITORING The IRS monitors participants for compliance with the revenue 

procedures and IRS e-file requirements. Monitoring may include, 

but is not limited to, reviewing IRS e-file submissions, scrutinizing 

advertising material, checking Form 8453F submissions, examining 

records, observing office procedures and conducting suitability 

checks. IRS personnel may monitor participants during visits to the

participant’s offices and other locations where IRS e-file activities 

are performed. Monitoring visits may be conducted to investigate 

complaints and to ensure voluntary compliance. 

SANCTIONING Violations of IRS e-file requirements may result in warning or 

sanctioning of the participant. Before sanctioning a participant, the 

IRS may issue a warning letter that describes specific corrective 

action for deviations from specific rules. However, sanctioning may 

be implemented without issuance of a warning letter. Sanctioning 

may be a written reprimand, suspension or expulsion from the 1041 

e-file Program, depending on the seriousness of the infraction. The 

IRS categorizes the seriousness of infractions as Level One, Level 

Two and Level Three. Sanctions may be appealed through the 

Administrative Review process. 

SUITABILITY A check is conducted on all firms and the principals and 

Responsible Officials of firms when a Form 8633 application is 

initially processed, and annually thereafter. To maintain the IRS 

1041 e-file Program integrity annual suitability checks are done to 

determine if: 

• All personal income tax returns are filed and timely; 

• All business tax returns are filed and timely; 
Publication 1437 November 2006 44

SECTION 16 SAFEGUARDING THE 1041 e-FILE PROGRAM, 

continued 

• All tax liabilities are paid or appropriately addressed with the 

Service; 

• Penalties have not been assessed; and 

• There is evidence of disreputable conduct or other facts that 

would reflect adversely on the IRS 1041 e-file Program. 

• The suitability check includes a credit check, a fingerprint 

card, compliance with tax requirements and meeting state 

and local licensing and/or bonding requirements for the 

preparation and collections of tax returns. 

NOTE: Failure to meet any of these checks may result 

in the participant being sanctioned. 

Please refer to Publication 3112 for additional 

information concerning Program Requirements. 

 

SUBMISSIONS The Ogden Submission Processing Center will monitor each 

participant’s submissions to ensure that quality is kept at an 

acceptable level. The Service Center will counsel the participant, if 

necessary. 

QUALITY If a participant does not maintain an acceptable level of quality, the 

electronic filing authorization may be revoked. 

SUSPENSION A sanction revoking privileges to participate in the IRS 1041 e-file 

Program. The following conditions can lead to suspension: 

• Deterioration in the format of submissions; 

• Unacceptable cumulative error rate; 

• Violation of advertising standards; 

• Unethical practices in return preparation; 
Publication 1437 November 2006 45

SECTION 16 SAFEGUARDING THE 1041 e-FILE PROGRAM, 

continued 

• Untimely receipt of Forms 8453-F or incomplete, illegible, 

altered, missing, or unapproved substitute Forms 8453-F; 

• Misrepresentation on the participant’s application (Form 

8633); and 

• Other facts or criteria that would adversely reflect on the 

electronic filing. 

NOTE: If you were suspended and wish to be reconsidered 

into the program you will need to reapply by

completing the Form 8633 application. Or if you 

were dropped from the program and would like to 

continue you also need to reapply. When 

reapplying, remember to include your previously

assigned EFIN. 

 

COUNSELING IRS will counsel suspended participants concerning the 

requirements for reinstatement in the program. 

PENALTIES Treasury Regulations take precedence over these procedures. 

Electronic participants are subject to any criminal penalty for 

unauthorized disclosure or use of tax return information, as 

described in Treasury Regulation 301.7216-1(a). Other preparer 

penalties pertaining to individuals or firms who meet the definition 

of an income tax return preparer are covered under IRC Section 

7701(a)(36) and Treasury Regulation 301.7701-15. 
Publication 1437 November 2006 46

SECTION 17 ADMINISTRATIVE REVIEW 

PARTICIPATION Applicants and participants who are denied participation, or 

suspended, have the right to request an administrative review. 

REINSTATEMENT Requests for administrative review of ineligibility or suspension 

decisions should be directed to: 

Internal Revenue Service 

Office of the Director of Practice (PC:E:P) 

1111 Constitution Avenue, NW 

Washington, DC 20224 

SECTION 18 EFFECT ON OTHER DOCUMENTS 

REVISIONS This revision supersedes any Publication 1437 previously issued. 

PUBLICATIONS Publication 1438, File Specification, Validation Criteria and Record 

Layouts for the 1041 e-file Program, U.S. Income Tax Return for

Estates and Trusts for Tax Year 2006; 

 Publication 1438-A, (Supplement) for the 1041 e-file Program, U.S. 

Income Tax Return for Estates and Trusts for Tax Year 2006

NOTE: These publications are updated annually. 

SECTION 19 EFFECTIVE DATE 

CALENDAR These procedures remain effective for calendar year returns ending 

AND FISCAL December 31, 2006, and fiscal year returns ending January 31 

YEAR RETURNS through June 30, 2007.