New E-Filing Requirements

The IRS has set new regulations that almost all returns filed on or after January 1, 2024, must be submitted to the IRS electronically instead of on paper. Regulations section 301.6011-2 was amended to lower the threshold to ten for which employers must file certain information returns electronically.

To determine whether employers must file information returns electronically, they must add together the number of information returns (see list below) and the number of Forms W-2 they must file in a calendar year. If the total is at least ten, they must file all forms electronically. Per the IRS the new threshold is effective for information returns required to be filed in calendar years beginning with 2024. The new rules apply to tax year 2023 Forms W-2 because they are required to be filled by January 31, 2024.

Return forms that must be added together with Form W-2:

Form 1042-S
Form 1094 series
Form 1095-B
Form 1095-C
Form 1097-BTC
Form 1098
Form 1098-C
Form 1098-E
Form 1098-Q
Form 1098-T
Form 1099 series
Form 3921
Form 3922
Form 5498 series
Form 8027
Form W-2G

Many employers will need to implement new software, policies and procedures to comply with the new regulations. Corrected information returns will be treated separately and will not be included in calculating the number of information returns.

For more information about the new electronic filing requirements visit https://www.irs.gov/forms-pubs/new-electronic-filing-requirements-for-forms-w-2.

For more information regarding rules for correction of Forms W-2c visit https://www.irs.gov/forms-pubs/about-form-w-2-c.