As a result of finalized rules from the Department of the Treasury and the IRS, certain taxpayers may need to file their tax returns electronically (e-file) beginning January 2024.
Here are some key takeaways1:
- The new rules apply to Forms W-2 and all 1099 series for the 2023 tax year as they are required to be filed by January 31, 2024.
- To determine whether employers must e-file information returns, they need to add together the number of information returns and the number of Forms W-2/1099’s they are required to file in a calendar year.
- If the total above is at least 10 returns, they must file all these tax returns electronically (The final regulations reduce the 250-return threshold to 10 or more returns in a calendar year).
- Keep in mind that certain tax returns and documents not previously requiring e-filing may now need to be e-filed.
- The new rules also eliminate the e-filing exception for income tax returns of corporations reporting total assets under $10 million at the end of their taxable year.
- Partnerships with more than 100 partners will need to e-file information returns and are required to file at least 10 returns of any type during the calendar year when e-filing their partnership returns.
Please click here for additional details from the IRS.
Questions on e-filing? Reach out to the Cg Team.
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IR-2023-31. (2023, February 21). IRS and Treasury issue final regulations on E-file for businesses. Internal Revenue Service. https://www.irs.gov/newsroom/irs-and-treasury-issue-final-regulations-on-e-file-for-businesses