IRS Finalizes Electronic Filing Requirements for Certain Information Returns

The IRS has released final regulations amending rules intended to increase the filing of electronic returns in accordance with the Taxpayer First Act of 2019. A rule issued in July 2019 proposed reducing the threshold by which filers must electronically file from 250 to 100 returns for the 2022 calendar year, and further reduced to 10 returns after that.  Additionally, the proposal would require all return types to be aggregated for determining the new thresholds.

The final rule is applicable for returns filed after January 1, 2024, and reduces the threshold to 10 returns aggregated across all form types. A filer is required to file at least 10 returns if, during the calendar year that includes the first day of the plan year, the filer is required to file at least 10 returns of any type, including information returns (e.g., Form W-2 and Form 1099-R), income tax returns, employment tax returns, and excise tax returns. The final rule maintains a 250-threshold determined separately by form type before that time.