I 
119TH CONGRESS 
1ST SESSION H. R. 6458 
To amend the Internal Revenue Code of 1986 to improve the electronic 
filing process for employment taxes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 4, 2025 
Ms. MALLIOTAKIS (for herself, Mr. MORELLE, and Mr. SUOZZI) introduced 
the following bill; which was referred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to improve 
the electronic filing process for employment taxes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Electronic Filing Im-
provement and Logistical Efficiency Act of 2025’’. 
SEC. 2. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) businesses and their third-party representa-
tives should be able to file all employment tax forms 
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and schedules, including amended returns, electroni-
cally; 
(2) the current prevalence and reliance on 
paper by both the Internal Revenue Service and pri-
vate sector businesses for quarterly and annual em-
ployment tax return filings is not sustainable and 
must be addressed immediately; 
(3) the obstacles to electronic filing are both 
structural and behavioral; and 
(4) the Internal Revenue Service must stream-
line the process for filing employment returns elec-
tronically, making it as easy and efficient as pos-
sible, 
while 
the 
internal 
revenue 
laws 
must 
incentivize the use of electronic filing to help rapidly 
overcome longstanding taxpayer behaviors. 
SEC. 3. ELECTRONIC FILING FOR EMPLOYMENT TAX RE-
TURNS. 
Not later than 1 year after the date of the enactment 
of this Act, the Internal Revenue Service shall— 
(1) make available to employers fully-automated 
electronic process for satisfying all filing and pay-
ment requirements (including amended returns) for 
taxes imposed under subtitle C of the Internal Rev-
enue Code, 
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(2) first focus on making available pursuant to 
paragraph (1) the adjusted employer’s quarterly 
Federal tax return or claim for refund (Form 941– 
X), and 
(3) make all necessary technical and business 
changes to the electronic filing process to ensure 
that the process is fully automated on the front- and 
back-end and that electronic filing is the most con-
venient and efficient means of meeting such filing 
and payment requirements. 
SEC. 4. ELECTRONIC FILING TAX CREDIT FOR EMPLOYERS. 
(a) IN GENERAL.—Subchapter D of chapter 21 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 3135. ELECTRONIC FILING CREDIT FOR EMPLOYERS. 
‘‘(a) IN GENERAL.—In the case of any employer re-
quired to make a quarterly return of the taxes imposed 
by subtitle C, there shall be allowed as a credit against 
applicable employment taxes with respect to such employer 
an amount equal to— 
‘‘(1) $1,000 for the calendar quarter for which 
the return and payment of such taxes are for the 
first time all made electronically, and 
‘‘(2) in the year following the year in which a 
credit is first determined for a calendar quarter 
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under paragraph (1), $1,000 for 1 such calendar 
quarter elected by the employer in such year for 
which the return and payment of such taxes are all 
made electronically. 
‘‘(b) CREDIT LIMITED
TO EMPLOYMENT TAXES; 
CARRY FORWARD.— 
‘‘(1) LIMIT.—The credit allowed by subsection 
(a) with respect to any calendar quarter shall not ex-
ceed the applicable employment taxes for such cal-
endar quarter on the wages paid with respect to the 
employment of all employees of the employer. 
‘‘(2) CARRYFORWARD.—If the amount of the 
credit under subsection (a) exceeds the limitation of 
paragraph (1) for any calendar quarter, such excess 
shall be treated as a credit allowed under subsection 
(a) against the applicable employment taxes for the 
following calendar quarter. 
‘‘(c) DEFINITION AND SPECIAL RULES.— 
‘‘(1) RECAPTURE.— 
‘‘(A) IN GENERAL.—In the case of an em-
ployer allowed a credit under subsection (a) 
against an applicable employment tax for any 
calendar quarter, if the employer for any subse-
quent calendar quarter fails to make the return 
and payment of applicable employment taxes 
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electronically, such tax shall for such subse-
quent calendar quarter be increased by the 
amount of such credit so allowed. 
‘‘(B) NO
CREDIT
FOLLOWING
RECAP-
TURE.—In the case of an employer with respect 
to which subparagraph (A) applies for any 
quarter, no credit shall be allowed under sub-
section (a) for any subsequent quarter. 
‘‘(2) EXCEPTION
FOR
EXTRAORDINARY
CIR-
CUMSTANCES.— 
‘‘(A) EXTRAORDINARY CIRCUMSTANCES.— 
A taxpayer shall not be treated as failing to 
make the return and payment of applicable em-
ployment taxes electronically for purposes of 
paragraph (1) under such circumstances as the 
Secretary may by exception provide, including 
an employer’s lack of ready access to broadband 
or convenient online services due to rural or 
other geographic barriers or emergency situa-
tions where electronic filing and payment would 
cause undue hardship. 
‘‘(B) DEEMED COMPLIANCE FOR CERTAIN 
BULK FILERS.—For purposes of this section, in 
the case of a third party provider, including a 
payroll service provider, who for the 1-year pe-
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riod preceding the filing of any return to which 
paragraph (1)(A) would apply (without regard 
to this subparagraph) filed electronically at 
least 99 percent of all returns described in sub-
section (a) that were made by the provider dur-
ing such period, no credit shall be recaptured 
under paragraph (1)(A) by reason of such re-
turn. 
‘‘(d) APPLICABLE EMPLOYMENT TAXES.—For pur-
poses of this section, the term ‘applicable employment 
taxes’ means the following: 
‘‘(1) The taxes imposed by subsections (a) and 
(b) of section 3111. 
‘‘(2) So much of the taxes imposed by section 
3221 as are attributable to the rates in effect under 
subsections (a) and (b) of section 3111. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) AGGREGATION RULE.—All persons treated 
as a single employer under subsection (a) or (b) of 
section 52, or subsection (m) or (o) of section 414, 
shall be treated as one employer for purposes of this 
section. 
‘‘(2) GOVERNMENTAL
ENTITIES.—No credit 
shall be allowed under this section to the Govern-
ment of the United States, the government of any 
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State or political subdivision thereof, or to any agen-
cy or instrumentality of any of the foregoing. The 
preceding sentence shall not apply to any organiza-
tion described in section 501(c)(1) and exempt from 
tax under section 501(a).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter D of chapter 21 of such Code is amended 
by adding at the end the following new item: 
‘‘Sec. 3135. Electronic filing credit.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to calendar quarters beginning 
after the date of the enactment of this Act. 
SEC. 5. USER FEE FOR PAPER FILING OF EMPLOYMENT 
TAXES. 
(a) IN GENERAL.—Chapter 25 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 3513. USER FEES. 
‘‘(a) IN GENERAL.—The Secretary shall impose a 
user fee of $250 on each submission other than by elec-
tronic means of any quarterly or annual return required 
with respect to the collection of the tax imposed by chapter 
21 or 23A. 
‘‘(b) SPECIAL RULES.—For purpose of this section— 
‘‘(1) EXCEPTION.—The Secretary shall estab-
lish procedures for granting exceptions to the fee im-
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posed by subsection (a) where electronic filing is not 
feasible, including for under any of the following cir-
cumstances: 
‘‘(A) Any employer not required to make a 
quarterly return of the taxes imposed by sub-
title C. 
‘‘(B) First and second-time submissions 
filed other than by electronic means shall have 
the user fee waived, with a written notification 
sent to the employer outlining the electronic 
submission requirement. 
‘‘(C) Employers who do not have ready ac-
cess to broadband or convenient online services 
due to rural or other geographic barriers. 
‘‘(D) Certain emergency situations where 
electronic filing and payment would cause 
undue hardship. 
‘‘(E) Recent victims of identity theft or 
cybercrimes where submissions other than by 
electronic means might be necessary or desir-
able. 
‘‘(F) Such other circumstances as may be 
provided by the Secretary in regulations or 
other guidance. 
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Any person qualifying for an exception under this 
section or other applicable law shall be provided al-
ternative submission options such as a paper filing. 
‘‘(2) CERTAIN BULK FILERS.—In the case of a 
third party provider, including a payroll service pro-
vider, who for the 1-year period preceding the filing 
of any return to which subsection (a) applies filed 
electronically at least 99 percent of all returns de-
scribed in subsection (a) that were made by the pro-
vider during such period, no user fee shall be im-
posed with respect to such return under subsection 
(a).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 25 of such Code is amended by adding at the 
end the following new item: 
‘‘Sec. 3135. User fees.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to returns required to be made for 
periods ending later than 2 years after the date of the 
enactment of this Act. 
Æ 
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