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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6458 Introduced in House (IH)]
<DOC>
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 Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Electronic Filing Improvement and
Logistical Efficiency Act of 2025''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) businesses and their third-party representatives should
be able to file all employment tax forms and schedules,
including amended returns, electronically;
(2) the current prevalence and reliance on paper by both
the Internal Revenue Service and private sector businesses for
quarterly and annual employment 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 streamline the
process for filing employment returns electronically, making it
as easy and efficient as possible, 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 RETURNS.
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 payment requirements
(including amended returns) for taxes imposed under subtitle C
of the Internal Revenue Code,
(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 convenient 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 required 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 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 exceed the applicable
employment taxes for such calendar 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 employer
allowed a credit under subsection (a) against an
applicable employment tax for any calendar quarter, if
the employer for any subsequent calendar quarter fails
to make the return and payment of applicable employment
taxes electronically, such tax shall for such
subsequent calendar quarter be increased by the amount
of such credit so allowed.
``(B) No credit following recapture.--In the case
of an employer with respect to which subparagraph (A)
applies for any quarter, no credit shall be allowed
under subsection (a) for any subsequent quarter.
``(2) Exception for extraordinary circumstances.--
``(A) Extraordinary circumstances.--A taxpayer
shall not be treated as failing to make the return and
payment of applicable employment 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 situations 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 period 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 subsection
(a) that were made by the provider during such period,
no credit shall be recaptured under paragraph (1)(A) by
reason of such return.
``(d) Applicable Employment Taxes.--For purposes 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 Government of the United States, the
government of any State or political subdivision thereof, or to
any agency or instrumentality of any of the foregoing. The
preceding sentence shall not apply to any organization
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 Revenue 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 electronic 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 establish procedures
for granting exceptions to the fee imposed by subsection (a)
where electronic filing is not feasible, including for under
any of the following circumstances:
``(A) Any employer not required to make a quarterly
return of the taxes imposed by subtitle 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 access 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 desirable.
``(F) Such other circumstances as may be provided
by the Secretary in regulations or other guidance.
Any person qualifying for an exception under this section or
other applicable law shall be provided alternative submission
options such as a paper filing.
``(2) Certain bulk filers.--In the case of a third party
provider, including a payroll service provider, 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 described in subsection (a) that were made by
the provider during such period, no user fee shall be imposed
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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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