News & Resources


IRS Proposes Rules to Lower Electronic Filing Threshold

BY: Jyme Mariani, Esq. | 07/23/21

The IRS proposed regulations amending the rules for filing electronically that reduce the threshold for filing information returns [86 F.R. 39910, 7-23-21]. The proposed amendments reflect changes made by the Taxpayer First Act of 2019 (TFA).

The current information return electronic filing threshold is 250 returns. The TFA authorizes the IRS to gradually reduce the threshold to 10 returns. The proposed reduction would lower the threshold to 100 returns for tax year 2022 (i.e., returns for 2021 filed in 2022) and 10 returns beginning January 1, 2023.

The proposed regulations would aggregate all of an employer’s information returns (e.g., Forms W-2, 1099) to determine if the threshold is met instead of counting each type of form separately. Also, the proposed regulations would require that corrected information returns be filed in the same manner as the original form (either electronically or on paper).

Comments Due September 21

Any comments on the proposed regulations may be submitted electronically, identified by IRS REG-102951-16, through the eRulemaking portal. Comments can be mailed to: CC:PA:LPD:PR (REG-102951-16), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Comments must be received by September 21.

To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!

Jyme Mariani, Esq., is Managing Editor of Payroll Currently and Payroll Information Resources for the APA.