SECTION 4. OTHER EXCLUSIONS

FROM THE ELECTRONIC FILING REQUIREMENT

.01 In General . Section 301.6011–7(c)(2) provides for a second category of exclusion or exemption from the electronic filing requirement of section 6011(e)(3) and § 301.6011–7, administrative exemptions.

.02 Administrative Exemptions . Under § 301.6011–7(c)(2), the IRS may provide administrative exemptions for certain classes of specified tax return preparers or types of individual income tax returns, as the IRS determines necessary to promote the effective and efficient administration of section 6011(e)(3) and § 301.6011–7. The IRS generally will provide an administrative exemption, and not an undue hardship waiver, when technology issues affecting a range of specified tax return preparers in a similar manner prevent specified tax return preparers from filing returns electronically. Undue hardship waiver requests should not be submitted by or for specified tax return preparers, or for the individual income tax returns they prepare and file, that meet the criteria for an administrative exemption for purposes of claiming the exemption. The IRS will provide the criteria and procedures for claiming an administrative exemption, if any, through forms, instructions, or other appropriate guidance. See Notice 2011–26 for a list of current administrative exemptions.

.03 Further Information . Further information on the electronic filing requirement, undue hardship waiver requests, documentation for a taxpayer’s choice to file in paper format, and administrative exemptions will be posted on www.irs.gov, and may include answers to Frequently Asked Questions.

expects, or if the preparer is a member of a firm, the firm’s members in the aggregate reasonably expect, to file fewer than 100 individual income tax returns in the 2011 calendar year. Solely for purposes of section 6011(e)(3) and § 301.6011–7, an individual is considered a member of a firm if the individual is an employee, agent, member, partner, shareholder, or other equity holder of the firm.

.02 Section 6011(e)(3)(C) and § 301.6011–7(a)(2) define an individual income tax return as any return of income tax imposed by subtitle A on individuals, estates, and trusts. This includes the Form 1040 series of income tax returns for individuals, the Form 1041 series of income tax returns for estates and trusts, and Form 990–T ( Exempt Organization Business Income Tax Return ) when the exempt organization is a trust subject to tax on unrelated business taxable income under section 511(b).

.03 Under § 301.6011–7(b) any individual income tax return prepared by a specified tax return preparer in a calendar year must be filed on magnetic media (electronically, i.e., e-file ) if the return is filed by the specified tax return preparer.

.04 Section 301.6011–7(a)(4)(i) provides that an individual income tax return is considered to be filed by a tax return preparer or a specified tax return preparer if the preparer or any member, employee or agent of the preparer or the preparer’s firm submits the tax return to the IRS on the taxpayer’s behalf, either electronically (by e-file or other magnetic media) or in non-electronic or non-magnetic media (paper) form. Submission of a tax return in paper form includes the transmission, sending, mailing, or otherwise delivering of the paper tax return to the IRS by the tax return preparer or the specified tax return preparer, or by any member, employee, or agent of the tax return preparer or the preparer’s firm.

.05 Section 301.6011–7(a)(4)(ii) also provides that an individual income tax return will not be considered to be filed, as defined in § 301.6011–7(a)(4)(i), by a tax return preparer or specified tax return preparer, or the preparer’s firm, if the preparer who prepared the return obtains a hand-signed statement from the taxpayer that states the taxpayer chooses to file the

return in paper format and that the taxpayer, and not the preparer, is filing the paper return with the IRS ( e.g ., submitting it by mail to the IRS). Such statement must be signed by the taxpayer (by either spouse if a joint return) and dated on or before the date the taxpayer files the return. The IRS may provide guidance through forms, instructions or other appropriate guidance regarding how the preparer can document a taxpayer’s choice to file a paper individual income tax return. This revenue procedure provides guidance to preparers and taxpayers regarding how preparers can document a taxpayer’s choice to file an individual income tax return in paper format.

.06 Section 301.6011–7(c)(1) authorizes the IRS to grant a waiver of the electronic filing requirement in cases of undue hardship to specified tax return preparers requesting an undue hardship waiver in the manner prescribed in IRS forms, instructions, or other appropriate guidance. This revenue procedure prescribes guidance on how to submit an undue hardship waiver request for consideration by the IRS.