IMPORTANT IRS UPDATE
The IRS released new regulations that lowers the e-file requirement for informational returns which include W-2s and 1099s from 250 forms to 10 forms for calendar year 2023 (filed in 2024). This regulation includes the combined total for all informational forms filed. This is expected to have a major impact on businesses and individuals. Any return required to be filed electronically and not filed in that manner will be subject to significant penalties. Hardship waivers and reasonable cause exceptions continue to be available for relief from penalties for failure to file returns electronically in appropriate cases. The potential late filing penalty in 2024 is up to $310 per form.
Find more information at https://www.irs.gov/newsroom/irs-and-treasury-issue-final-regulations-on-e-file-for-businesses
Businesses should review their current return threshold counts and start planning now to implement these changes in advance of the January 2024 electronic filing deadlines. PHB Accounting clients with questions about implementing these changes for their 2023 income tax returns and informational returns can contact us for more information.