E-File Threshold

Important IRS Update

On February 23, 2023, the IRS released final regulations that lowers the e-file threshold for certain information returns from 250 returns to 10 returns for calendar year 2023 (filed in 2024). This regulation includes the total for all aggregated forms filed. This is expected to have a major impact on businesses. See below for more information.

Additional Provisions Include the Following

Complete details of the new regulations are available at federalregister.gov

The e-file threshold no longer applies per form type, but rather filers that have a combined total of 10 or more information returns (see below applicable forms) are 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.

The e-file threshold is officially lowered to 10 forms for certain filers beginning in 2024.

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.

Next Steps

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 that meet all your W-2, 1099 & 1095 reporting needs and requirements. Ask for a demo today!

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