The Internal Revenue Service has issued Notice 2005-88, which explains steps that large corporations and tax-exempt organizations can take to seek waivers from electronic filing requirements.
The notice establishes that taxpayers can generally request waivers from the electronic filing requirement where the taxpayer can't meet the requirements due to technology constraints, or where compliance with the requirements would result in undue financial burden on the taxpayer.

"Electronic filing of tax returns is a key component to modernizing our tax system," said IRS Commissioner Mark W. Everson. "While we have mandated electronic filing for large corporations and tax-exempt groups, we recognize that in limited specific circumstances some of these entities may not be able to meet this requirement."

For tax years ending on or after Dec. 31, 2006, the electronic filing requirement will be expanded to include the tax year 2006 tax returns of corporations and tax-exempt organizations with $10 million or more in total assets.

In addition, private foundations and charitable trusts will be required to electronically file their Form 990-PF, regardless of their asset size. Corporations and tax-exempt organizations outside of announced parameters may voluntarily electronically file.

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