In this digital age, it's no surprise that the IRS is pushing for businesses to embrace electronic filing of information returns. Starting January 1, 2024, the threshold for electronically filing W2 and/or 1099 returns is decreasing. This means that if your business files 10 or more returns in a calendar year, you will be required to e-file. In this post, we'll explore the benefits of electronic filing, discuss the new regulations, and introduce a helpful online portal designed to simplify the process.
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First, let's address the question: why should I bother with electronic filing? By embracing electronic filing, you can say goodbye to the hassle of paper forms, envelopes, and trips to the post office. E-filing simplifies the process, saves time, and reduces the risk of errors. Plus, it's an eco-friendly option that contributes to a paperless future.
Previously, the threshold for e-filing information returns was set at 250 returns. However, the IRS has now reduced this threshold to 10 or more returns in a calendar year. This means that if your business falls into this category, you will be required to file electronically. Additionally, the new regulations eliminate the e-filing exception for income tax returns of corporations reporting total assets under $10 million. Furthermore, partnerships with more than 100 partners are now required to e-file information returns. Even partnerships that file at least 10 returns of any type during the calendar year must now e-file their partnership return.
To simplify the electronic filing process, the IRS has introduced a new online portal called the Information Returns Intake System (IRIS). This free, secure, and user-friendly platform helps businesses file their Form 1099 series information returns electronically. The best part is that you don't need any special software to access IRIS. Whether you're a small business or a larger enterprise, this portal can be a game-changer, especially if you're currently sending your 1099 forms on paper to the IRS.
At LGT, we understand that navigating the world of e-filing can be overwhelming. Our experienced team can guide you through the process, ensuring compliance with the new regulations and smooth submission of your returns. If you need any assistance or have further questions, please reach out to your contact within our firm, and we’d be happy to help.
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