2024 Tax Compliance: Understanding the New E-Filing Rules for Businesses

1099 Electronic Filing Will Be Required For Most Businesses with W-2 Employees or Businesses with a High Volume of 1099s.

In 2024, the IRS has changed the e-file requirement for informational returns such as W2s, 1099s, 1098s, 1042s, etc. Now, any taxpayer submitting 10 or more information returns, must file those returns electronically.

 In prior years, if a taxpayer was required to file 250 or more of any single type of information return, including 1099s, 1098s, and W-2s, the returns were required to be submitted electronically. Also, in prior years each type of form was counted separately for purposes of the filing threshold.

In 2024, submissions of all types of forms subject to this legislation are totaled (aggregated) for purposes of determining if the threshold has been met. Example: If a taxpayer files five (5) W-2 forms and (5) 1099 forms, they are required to submit all 1099s and W-2s, as well as any other information return required to be filed, electronically.

Note: 1099s and 1098s are due to be sent to recipients no later than January 31, 2024. Since the forms have to be e-filed, the e-file has to be transmitted from our software on January 29th the be timely.

If you have any questions about your e-filing requirements for informational returns, please contact our office.