Compliance Alert - IRS Issues Changes to Corrections Filing Process
The IRS has announced the final ruling on REG-102951-16 adopting the proposed changes to
the corrections filing process. The adopted changes are as follows:
Adopted Changes
- If an original information return covered by paragraph (b) is required to be filed electronically,
any corrected information return corresponding to that original return must also be filed
electronically. - If an original information return is permitted to be filed on paper and is filed on paper, any
corrected information return corresponding to that original return must be filed on paper. - Paragraph (b) includes these forms > Form 1042–S, Form 1094 series, Form 1095–B, Form 1095–C, Form 1097-BTC, Form 1098, Form 1098-C, Form 1098–E, Form 1098-Q, Form 1098–T, Form 1099 series, Form 3921, Form 3922, Form 5498 series, Form W-2, W-2VI, W-2AS, W-2GU, and W–2G.
This final ruling takes effect starting January 1, 2024 for the 2023 tax filing season.
Are Form Corrections Affected by the New Rules?
Yes! All corrections to information returns must be filed with the IRS in the same format as the
original filing, whether paper or electronic. Form corrections that are filed using a different format
than the original filing will not be recognized as a correction by the IRS and could be subject to a
penalty for failure to correct the form.
(See attached PDF)
Effective Date of Change: January 1, 2024