E-Filing Threshold


If you do not currently e-file W-2s and 1099s, you may be required to soon.

IRS proposes lower e-filing threshold for employers.

More employers will soon be required to file electronic returns with the IRS.

The IRS has proposed new regulations designed to lower the e-filing threshold gradually over the next two years. The new threshold will be based on the number of returns filed, rather than the number of employees. These returns include W-2s and forms in the 1099 series.

Currently, employers that file 280 returns are required to submit them electronically. The proposed regulations would lower that threshold to 100 returns for tax year 2021 returns (filed in 2022), then lowered again to 10 returns for tax year 2022 returns (filed in 2023).

The changes, posted in the Federal Register, are based on updates initially proposed in the Taxpayer First Act of 2019.

If you would like additional information or to discuss the topics mentioned, please contact Marie Myers, CPA at 317-260-4472 or mmyers@greenwaltcpas.com .