Form 1040NR Might Be E-filed in 2016, by Jean Mammen, EA

The IRS is working towards filing 2016 forms 1040NR and related forms by Modernized efile (MeF). Testing has begun. And they have six months before e-filing would begin.

The draft instructions for 2016 Form 8453 begin: What’s New. Beginning in 2017, you will be able to electronically file Form 1040NR, U.S. Nonresident Alien Income Tax Return, and will be able to attach any related documents listed on page 1 to Form 8453.

The listed forms include Form 8858, Information Return of U.S. Persons With Respect to Foreign Disregarded Entities. The complete list of forms that may be attached to the Form 8453 shows: 1098-C, 2848, 3115, 3468, 4136, 5713, 8283, 8332, 8858, 8864, 8885, and 8949.

The IRS has begun making Assurance Testing System (ATS), materials available for comment.  The July 1, 2016, post on the ‘Coming Soon to the Modernized e-file (MeF) Program’ article about the five 1040NR  Early Look Scenarios for 2016 requested that comments from partners and e-file providers be sent to the MeF mailbox by July 8.

You will likely find the latest versions of the ATS 1040NR scenarios by going to the IRS website and entering the search term: TY2016. There are two versions  of 1040NR scenarios there now, one dated April 21, 2016, and one dated June 30, 2016.

It appears that only the e-signature procedures were being evaluated during this July 1 to 8 comment period.

The five scenarios mention various combinations of e-signature methods, such as self-select PIN, Practitioner PIN, filer entered PIN, PIN entered by ERO.

The five ATS Form 1040NR scenarios are best described as “random”.

They do include a variety of forms, including: all 5 pages of form 1040NR (but not 1040NR-EZ), and forms 1042-S, 2106, 8283, 8288A, 8805, 8840, 8843, 8854, W-2, SSA-1042-S, and Schedules C and D.

But the data entered on the forms is random, inconsistent, and incomplete.

Not to worry. Presumably the tax software works as well as it ever has. And there are six months to go.

A random scenario example:

Form 1040NR

John Pear

Page 1  shows his name, address, and filing status.

Page 2 shows his signature – printed per a self-select signature PIN and the date

Page 3 no entries

Page 4 no entries

Page 5 Schedule OI

  • Items A and B:    FR
  • Items C and D     No
  • Item E                  B1/B2
  • Item F                   No
  • Item G                  Canada is checked (Canada resident commutes to work in U.S  at  frequent  intervals – skip to H )
  • Dates entered and left U.S. in 2016
  • 08/14/14   08/29/14
  • 06/14/15   12/11/15
  • Item H               Days present
  • 2014  0      2015  15    2016  180
  • Items I, J, K blank
  • Item L lines 1, 2, 3 blank

Form 8840

Part 1 and Part IV have been completed

Form 8843 entries

Name

Line 4b 10

Part V Medical condition

  • 17a Ebola virus
  • 17b 8/24/15
  • 17c 12/11/2015

NOTE: No physician’s signature has been attached.

You would attach a signed statement here for MeF.

For the entries for F, J, M, and Q visa holders, the 1040NR e-signature of the taxpayer  on the tax return will be enough.

Let’s wish for fast and convenient e-filing and refunds for filers on Form 1040NR.