IRS seeks to lower e-filing threshold to 10 information returns of any type

Eric Updated by Eric

Read below for the proposed threshold changes. As of this writing, the IRS has not finalized the regulations but the SSA is operating under the assumption it will happen.

The Taxpayer First Act gave the IRS the authority to mandate that filers filing 10 or more of any type of information returns in aggregate do so electronically beginning with the 2022 tax year.

Furthermore, corrected returns must be filed in the same manner as the original: e-filed or paper filed.

  •   *Pending IRS issuing final regulations. The threshold for  electronic filing is currently 250 or more W-2s.

The IRS recommends obtaining a TCC by November 1st as the process may take 45 days.

If you haven't yet purchased our e-filing add-on to the W2/1099 program, please take a look at it before these new regulations go into effect. If you've already purchased it, please see our documentation.

For further reading, see Electronic-Filing Requirements for Specified Returns and Other Documents, particularly:

The Taxpayer First Act, which became Public Law 116-25 in July 2019, requires more employers to file W-2s or W-2Cs electronically. Although the IRS has not yet issued formal regulation on the implementation, here is the tentative schedule:
By midnight on January 31, 2022, employers who file 100 or more W-2s or W-2Cs will have to send W-2s or W-2Cs to SSA electronically.
By midnight on January 31, 2023, employers who file 10 or more W-2s or W-2Cs will have to send W-2s or W-2Cs to SSA electronically.
When the IRS issues formal guidance on implementing this new law, the above date may change. The IRS has the authority to penalize any employer who does not file electronically if they meet the threshold

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