WorldWide Drilling Resource

Drilling Into Money Not Boring by Mark E. Battersby e-File and Electronic Tax Filing Despite the fact it is only large businesses which are required to file government forms electronically, the number of businesses filing their taxes electronically jumped almost 10% to more than seven million. Is your drilling business taking full advantage of the Internal Revenue Service’s (IRS’s) e-File program or the many other government programs which accept or, in some cases, demand electronic filing? There is, for instance, the Social Security Administration’s Social Security Number Verification Service which electronically verifies the names and Social Security numbers of employees before an employer submits Form W-2s. The IRS offers various options for the electronic payment of federal taxes and fees. In fact, all federal tax payments, in- cluding federal tax deposits (FTDs), installment agreements, and estimated tax payments can be made using the government’s Electronic Federal Tax Payment System (EFTPS). At the heart of the IRS’s e-File program is the “Modernized e-File” (MeF) Internet filing program. When an incorporated drilling business e-Files, they send their income tax return data to the IRS electronically instead of on paper forms. In 2004, the IRS introduced the web-based MeF. MeF allows electronic filing of corpo- rate, exempt organization, partnership, excise and, of course, individual tax returns. And, if more time is required to master electronic filing, e-Filing Form 7004, Application for Automatic Extension to Fi le Cer tain Business Income Tax, Information and Other Returns, can be submitted through the MeF platform - keeping in mind, Form 7004 does not extend the time for payment of taxes. Among the electronic filing options for both drilling businesses and self-employed drilling contractors are the corporate tax returns, including Forms 1120/1120S/1120F. Drilling professionals, as well as those who authorize others to prepare, sign, and e-file their returns, can electronically file all partnership tax forms as well as Form 940, Employer's Federal Unemployment (FUTA) Tax Return; Form 941, Employer's Quarterly Federal Tax Return; and Form 944, Employer's Annual Federal Tax Return. There are also Form 940, 941, and 944 On-Line Filing Programs, as wel l as a Fi l ing Information Returns Electronically (FIRE) program for Forms 1099, W-2G & more. Electronic filing systems may appear scarier than they actually are. Bottom- line, however, electronic filing means faster refunds and instant confirmation a return has been received. Seeking pro- fessional advice and guidance might reveal the amazing savings potential of electronic filing, and bring every drilling operation or business into compliance before it becomes mandatory. Mark Mark E. Battersby may be contacted via e-mail to michele@ worldwidedrillingresource.com 21 WorldWide Drilling Resource ® DECEMBER 2017