News & Resources


APA Comments on IRS Rulemaking to Lower Electronic Filing Threshold

BY: Mike Linehan | 09/14/21

The APA Government Relations Task Force Subcommittee on Federal Issues submitted comments to the IRS in support of a notice of proposed rulemaking to lower the threshold for electronic filing and with a recommendation for an awareness campaign (86 F.R. 39910, 7-23-21).

The APA asked the IRS to directly contact current paper information return filers about required electronic filing and the procedures they need to take to comply. The subcommittee offered to assist the IRS with outreach to payroll professionals.

The Proposed Regulations

The proposed regulations would aggregate all of a business’ information returns to determine if the applicable electronic filing threshold is met (i.e., 100 returns filed in 2022; 10 returns filed in years after 2022). Currently, different types of information returns are not counted in the aggregate for purposes of determining whether the 250-form electronic filing threshold has been met. The forms covered by the rule include Forms 1042-S, 1094 series, 1095 series, 1098 series, 1099 series, 5498, 8027, and W-2 series.

APA Recommends an Awareness Campaign

The APA recommended the IRS use an awareness campaign to help employers determine how they will manage information return filing internally. Since the forms covered by the rulemaking are often managed by different departments, a business will need better internal communication. Time is needed for businesses that have not previously filed information returns electronically and for all businesses to understand the upgraded registration and authentication processes at the IRS and Social Security Administration.

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Mike Linehan is the Assistant Manager of Government Relations for the APA.