{"id":2622,"date":"2023-03-28T10:36:36","date_gmt":"2023-03-28T15:36:36","guid":{"rendered":"https:\/\/www.bbrown.com\/?post_type=insight&p=2622"},"modified":"2023-06-13T09:51:40","modified_gmt":"2023-06-13T14:51:40","slug":"new-irs-mandatory-electronic-filing-requirement-affects-most-employers","status":"publish","type":"insight","link":"https:\/\/www.bbrown.com\/us\/insight\/new-irs-mandatory-electronic-filing-requirement-affects-most-employers\/","title":{"rendered":"New IRS Mandatory Electronic Filing Requirement Affects Most Employers"},"content":{"rendered":"

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Employee Benefits<\/p>\n

\n New IRS Mandatory Electronic Filing Requirement Affects Most Employers\n <\/h1>\n\t\n <\/div>\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\t\n[\/vc_column][\/vc_row][vc_row][vc_column width=”2\/3″]\n
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\n New IRS Mandatory Electronic Filing Requirement Affects Most Employers\n <\/h1>\n\t\n <\/div>[vc_column_text]In new final regulations<\/a> released on February 21, 2023, implementing changes made by the Taxpayer First Act of 2019, the IRS has significantly expanded its electronic filing mandate beginning in 2024. The expanded electronic filing mandate will apply to all but the smallest employers and affect most IRS returns, including Forms W-2, 1099, 1094-C, 1095-C and other information returns.<\/strong><\/p>\n

Prior to the new regulations, only organizations filing 250 or more<\/u> returns or statements in the same filing category within the same tax year were required to file the returns electronically with the IRS.<\/p>\n

This meant that an employer required to file less than 250 returns in any one return\/statement category (e.g., an employer that files 200 Forms 1095-C and 200 Forms W-2) was not required to file either of these forms electronically.<\/p>\n

Under the new regulations, organizations that file 10 or more<\/u> returns or statements in total<\/u> for a given tax year are required to file electronically beginning in 2024. This contrasts with the prior rule because the 10-return threshold is aggregated across all return\/statement categories,<\/u> meaning an employer required to file five Forms 1095-C and five Forms W-2 would meet the 10-returns threshold and be required to file these documents electronically.<\/p>\n

The new 10-return threshold for mandatory electronic filing affects several employee benefit plan filings. The new threshold applies to the below required returns\/statements:<\/p>\n

Forms 1094-B\/C, 1095-B\/C, 1099 and 5498:<\/strong><\/p>\n