Tax Return and Form 941, Employers Quarterly Federal Tax Return can be filed on magnetic tape - a magnetic media alternative to filing on paper. Magnetic tape returns must be sent to the IRS through authorized reporting agents. A reporting agent is automatically eligible to participate in the Magnetic Tape Program for which the agent files at least 100 Forms 941 or 100 Forms 940.
Full payment entitles filers to a ten-day extension of the filing date.
The same information required on a paper return must be included when filing magnetically. An agent desiring to participate in the Magnetic Tape Program must first submit a letter of application. For Form 940, the agent should submit the application by August 15 of the year preceding the due date of the returns that the agent will file on magnetic tape. Within 30 days of receiving an application, the IRS service center will return a validated agent list to the agent. For Form 940, the agent must submit a test tape by September 30 of the year preceding the due date of the return that will be filed on magnetic tape.