IRS Proposes Rules for Employers to E-File Information Returns
The IRS counsel has issued proposed regulations to reduce the current 250-return threshold to 100 in 2022 and to 10 in 2023.
The regulations (RIN:1545-BN36) implement a provision of the Taxpayer First Act (Pub. L. 116-25) requiring the IRS to reduce the number of information returns—including Forms W-2, Wage and Tax Statement, and the Form 1099 series—employers are allowed to file by paper.
The regulations also re-propose a 2018 regulation that would require employers to aggregate all information returns, regardless of type, when determining whether they meet the threshold for e-filing.
In addition, the rules would necessitate that corrected information returns be filed electronically if the original returns were e-filed.
The regulations also include e-filing requirements for partnerships.