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119-hr-6458119th CongressWALLET

Electronic Filing Improvement and Logistical Efficiency Act of 2025

Sponsored By: Representative Malliotakis, Nicole [R-NY-11]

Introduced

Summary

Electronic filing of employment taxes would be accelerated and standardized across employers and third-party filers. The bill would create a $1,000 electronic-filing credit for employers and impose a $250 fee for non-electronic submissions while requiring IRS automation to support the shift.

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  • Employers could claim a $1,000 credit in the quarter they first e-file and another $1,000 in one quarter the following year. The credit is limited to the employer's employment-tax liability, is subject to aggregation rules, and can be recaptured if the employer stops e-filing.
  • Non-electronic submissions would generally face a $250 fee per return, with exceptions for lack of broadband, emergencies, identity theft, and first or second-time waivers. Third-party bulk filers that filed at least 99 percent of returns electronically in the prior year would be exempt from the fee and from credit recapture.
  • The IRS would be required to implement a fully automated electronic process for Subtitle C filings and to make Form 941-X available electronically within 1 year. The user-fee regime would apply to returns for periods ending more than 2 years after enactment.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

New electronic filing credit for employers

If enacted, employers would be able to claim a $1,000 tax credit for the calendar quarter when they first file and pay all required employment taxes electronically. They could also claim a second $1,000 credit for one quarter they pick in the following year if that quarter's return and payment are all electronic. Each quarter's credit could not exceed that quarter's applicable employment taxes; any extra would carry forward to the next quarter. If an employer later fails to file or pay electronically, the tax in that later quarter would be increased by the amount of the earlier credit and no further credits would be allowed, unless the Secretary excuses the failure for reasons such as lack of broadband or an emergency. A payroll provider that filed at least 99% of similar returns electronically in the prior year would be treated as complying for recapture purposes.

IRS to provide fully automated e-filing

If enacted, the bill would require the IRS to make available a fully automated electronic system to file and pay all subtitle C employment taxes within one year of enactment. The IRS would be required to prioritize making Form 941-X (the adjusted employer quarterly return) available electronically. The system would need front- and back-end automation so electronic filing is the most convenient and efficient way to meet filing and payment requirements.

New $250 paper payroll filing fee

If enacted, the bill would impose a $250 user fee each time a required quarterly or annual payroll-tax return under chapters 21 or 23A is submitted by paper instead of electronically. The fee would not apply if you file electronically and it would be waived for your first two paper filings after a written notice. Exceptions would be available where electronic filing is not feasible, such as lack of broadband, certain emergencies, recent identity-theft or cybercrime victims, employers not required to file quarterly, or other situations the Secretary provides. Payroll processors that filed at least 99% of similar returns electronically in the prior year would not be charged the fee for those returns. This rule would apply to returns for periods ending more than two years after enactment.

Sponsors & CoSponsors

Sponsor

Malliotakis, Nicole [R-NY-11]

NY • R

Cosponsors

  • Rep. Morelle, Joseph D. [D-NY-25]

    NY • D

    Sponsored 12/4/2025

  • Rep. Suozzi, Thomas R. [D-NY-3]

    NY • D

    Sponsored 12/4/2025

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 5/15/2026

Roll Call Votes

No roll call votes available for this bill.

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