The IRS has issued final regulations that will impact electronic filing requirements of certain returns starting with the 2023 tax year.

The final regulations lower the threshold for mandatory electronic filing.

Starting with returns for the 2023 tax year, filed in early 2024, businesses will need to file electronically if they are filing 10 or more returns total. W-2’s, 1099s, 1094s, 1095s and other specific withholding and information returns will be totaled together to determine whether electronic filing will be necessary.  Any business over the maximum threshold that does not file electronically, is subject to penalties and fines.

For example, if a business has 5 W-2 returns and 9 1099-MISC returns to file for the 2023 year (14 returns total), they will need to electronically file. In previous years, these returns could have been paper filed because paper filing was allowed within the prior regulations. However, since the 14 return total is over the new 10-return threshold, the business will be required to electronically file for the 2023 tax year.

If you have questions regarding your filing requirements or how this affects you, please call us at 215.723.8901.