With a new year comes new e-filing requirements businesses need to be aware of. Beginning Jan. 1, 2024, taxpayers who file more than 10 W-2s and 1099s (in aggregate) for the year are now required to electronically file all forms. Previously, the threshold was 250 returns.

These final new e-filing regulations were issued by the Department of Treasury and IRS in February 2023. Additional final regulations include:

• Eliminates the e-filing exception for income tax returns of corporations that report total assets under $10 million at the end of their taxable year
• Requires partnerships with more than 100 partners to e-file information returns and requires partnerships to file at least 10 returns of any type during the calendar year to e-file their partnership return

Taxpayers primarily impacted by these new filing regulations include those filing partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns, registration statements, disclosure statements, notifications, actuarial reports and certain excise tax returns.

Act Now

The annual information returns deadline for the 2023 tax year are as follows:

• Most 1099 forms are due to recipients by Jan. 31, 2024.
• 1099 non-employee compensation forms are due to the IRS by Jan. 31, 2024.
• Other 1099 form types are due to the IRS by Feb. 28, 2024, if filing on paper, or Mar. 31, 2024, if filing electronically.

Please make sure to file your 1099 forms and distribute them to the payee by the appropriate deadlines as penalties for not filing or filing late range from $50 to $550 per form.

Here to Help

Our business tax pros can assist with your 1099 filing requirements.