Reminder: IRS Lowers Electronic Filing Threshold to 10 Forms for 2024

In 2023, the IRS finalized regulations to reduce the threshold requirement for filing information returns (e.g., Forms W-2, 1099 series, ACA forms) electronically from 250 to 10 for returns required to be filed on or after January 1, 2024 (88 F.R. 11754, 2-23-23).

Aggregation of Returns

Under the final regulations, with a few exceptions, all information returns required to be filed during the calendar year will be counted in the aggregate. One exception to the aggregation rule is that corrected information returns are not counted in determining whether the 10-return threshold has been met.

Corrected Returns

The final regulations require corrected information returns to be filed in the same manner as the original form (either electronically or on paper). If persons are required to file original information returns electronically, they must file any corresponding corrected information returns electronically. Likewise, if persons permitted to file information returns on paper file them on paper, they must also file any corresponding corrected information returns on paper.

If Electronic Option Is Not Available

The final regulations clarify if the IRS’s systems do not support electronic filing for a specific return required to be filed electronically with the IRS, a taxpayer will not be required to file the return electronically.

To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!

Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Senior Manager of Payroll Information Resources for PayrollOrg.