The deadlines for reporting 2023 information returns are quickly approaching in 2024, and the threshold for e-filing has changed significantly.
The IRS issued final regulations this year for electronically filing most information returns, including Form W-2, Form 1042-S, Form 3921, Form 3922, Form 8027, and the various types of Form 1099 and Form 1098. Under the previous rules, taxpayers were required to file a specified form electronically only if the taxpayer was filing 250 or more of that specific form for the year. For 2023, the threshold has been lowered to 10, and taxpayers must aggregate all information returns across all form types when applying the threshold. This means that a taxpayer filing fewer than 10 of any form type would still have to file those forms electronically if their total number of returns of all form types is at least 10.
In practice, this change will require virtually all taxpayers to e-file all 2023 information returns when performing reporting in 2024. Taxpayers who previously filed information returns on paper should prepare for the transition.
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