Tax Electronic Filing Guide

Electronic Filing or EDI is the structured transmission of data between organizations by electronic means, which is used to transfer electronic documents or business data from one system to another system, i.e. from tax payer invoicing system to the state system without human intervention. Tobacco electronic filing includes portal data entry, online file upload, or other forms of file transfer (sFTP). The file can be of different format like CSV/Excel, XML, or other form of EDI.

XML E-file

XML is a markup language much like HTML that is designed to describe data by using tags. XML is a platform and software independent tool for storing, carrying, and exchanging data. Most states are migrating to XML electronic filing systems. The latest states to adapt XML e-filing, as recommended by the FTA Tobacco Uniformity technical committee, include Kentucky, Oregon, Ohio, and Michigan. The IRS XML electronic filing as defined by Tigers e-standards committee is leading the way for XML technology as the future format for filing taxes in the United States. The latest tobacco tax schema is available on the FTA website.

Uniform Filing

The FTA Tobacco Tax Section assists in establishing uniform reporting guidelines among the states for exchanging information on the distribution of cigarette and tobacco products. Uniform electronic filing using XML technology is the recommended media for exchanging tax returns data between tax payers and the states.