IRS E-file Requirements

While most people usually e-file their returns, some still prefer to paper file. However, The Taxpayer Act of 2019 authorized the Department of the Treasury and the IRS to issue regulations that require taxpayers with a number of returns over a threshold amount to e-file their returns. Treasury Decision 9972 published February 23, 2023 reduced that threshold number to 10. This means that 1 business that has 1 employee and 1 vendor to whom they issue a 1099 will be required to e-file their returns. This affects most taxpayers. Additionally, some forms can no longer be submitted via the paper filing method (e.g. Forms W-3 and W-2 Copy A) so they must be e-filed. As such, please be prepared to provide any information needed in order to submit your returns via the appropriate method in a timely manner to avoid incurring penalties and interest being imposed by the IRS as well as other taxing authorities that are taking similar actions towards e-filing methods.