E-File Threshold

Proposed IRS regulations were recently released recommending that the e-file threshold for information returns be lowered from 250 to 100 for Tax Year 2021 returns (to be filed in 2022) and then from 100 to 10 in Tax Year 2022 (to be filed in 2023). This regulation includes the total for all aggregated forms filed. Other provisions in the proposed regulations include the following:

  • Forms included in threshold change: 1042-S, 1094 series, 1095-B, 1095-C, 1098, 1098-E, 1098-T, 1099 series, 5498 series, 8027, W-2G, W-2, 499R-2/W-2PR, W-2VI, W-2GU, W-2AS, 1098-C, 1098-Q, 3921, 3922, 1097-BTC.
  • The e-file threshold would no longer apply per form type, but rather filers that have a combined total of 100 or more information returns (see above applicable forms) would be required to electronically file all information returns. (Corrections do not count when totaling the number of forms to file.)
  • Partnerships with more than 100 partners must file information returns electronically regardless of the number of information returns to be filed.
  • Corrections must be filed in the same manner that the originals are filed, and penalties will be imposed for failure to file a correction in the same manner as the original was filed.
  • This is pending final approval or additional changes. The e-file threshold will remain at 250 until final regulations are issued.

What Action Can You Take Now?

Contact Us to see if your software has our easy year-end filing tool. An e-file (paperless) solution may already be available to you through your software. We work with your software provider to supply you with solutions to meet all your W-2, 1099 & 1095 reporting needs and requirements.