IRS opens limited business e-filing as tax season ramps up

The Internal Revenue Service began accepting a limited array of business tax returns through its Modernized e-File system at 9:00 a.m. Eastern Time on Jan. 13, 2026, part of a phased rollout the agency says will expand later in the week. The IRS announced that it “will begin accepting business tax returns on January 13, 2026, at 9 a.m. Eastern Time,” in a GovDelivery notice that also outlined additional form availability scheduled for Jan. 18.

Beginning Jan. 18, five specific business returns will be enabled for MeF filing: Form 1042 (annual withholding tax return for U.S. source income of foreign persons), Form 1120-H (U.S. income tax return for homeowners associations), Form 709 (United States gift and generation-skipping transfer tax return), Form 709-NA (estate and generation-skipping transfer tax return for nonresident noncitizen estates), and Form 1041 (U.S. income tax return for estates). The staggered activation follows the IRS’s broader guidance that a wide range of business income, employment, excise and information returns can be filed electronically through its business e-file channels.

The agency reiterated that businesses can make estimated tax payments, federal tax deposits, and balance-due payments through EFTPS, IRS Direct Pay, or an IRS business tax account, and it provided enrollment and account links for those services. Electronic deposit rules and EFTPS contact lines were restated to help payroll and treasury managers ensure timely deposits and avoid penalties. The IRS directs filers and software providers to IRS.gov/BusinessEfile for technical specifications and filing instructions.

Corporate deadlines and extension mechanics were also emphasized. Form 1120 generally is due on the 15th day of the fourth month after a corporation’s tax year end. For corporations with a short tax year that began before Jan. 1, 2026, and ends on June 30, 2026, the deadline is Sept. 15, 2026; such June-ending short years are treated as if they end on June 30. Corporations use Form 7004 to request an automatic six-month extension to file Form 1120, but the IRS notes that the June-ending short-year filers use Form 7004 to request a seven-month extension. The notice also referenced extension procedures for Form 1120-S.

The limited MeF opening matters for corporate tax compliance, software vendors and financial markets. Earlier electronic acceptance allows tax departments and payroll processors to test systems, submit returns and calibrate cash-management plans weeks before the April 15 individual deadline. Treasury teams that rely on precise timing for federal tax deposits may reduce liquidity buffers if electronic filing and EFTPS deposits proceed smoothly, while any technical problems could force last-minute payments or extensions, creating short-term funding strains for affected firms.

This step is part of a longer trend toward digitalization of tax administration that policymakers have pushed to reduce paper processing and speed refund and credit calculations. The IRS also said it will begin accepting most individual tax returns on Jan. 26 and expects to handle roughly 164 million individual returns this season; the Free File option for eligible taxpayers opened Jan. 9. How effectively MeF scales this year will be a key operational indicator for the agency’s modernization effort and for corporate confidence in electronic tax infrastructure.