2024 IRS Paper Filing Threshold Dropped to Just 10 Forms

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CORPUS CHRISTI, TX / ACCESSWIRE / July 13, 2023 / Many companies and institutions rely on paper filing their tax forms with the IRS, but these companies may need to transition to electronic filing starting in 2024. The IRS recently released final regulations amending the paper filing form count threshold. This change aligns with updates made by the Taxpayer First Act (TFA) and its emphasis to increase electronic filing.

Reduced Paper Filing Threshold

The IRS form count threshold is the amount of forms in which a filer must submit an electronic filing. Before these final regulations, the form count threshold for many form types was 250 forms.

Beginning January 1, 2024, or for tax year 2023, the form count threshold will be only 10 forms. If a filer has only 10 forms of one type, then they will be required to submit an electronic filing.

The deadline to e-file W-2 forms is January 31st. The deadline to e-file 1099 Forms and ACA forms is March 31st. It’s important to always check the deadlines at the beginning of each filing season.

E-filing Advantages

There are many advantages to electronic filing, though. E-filing has always been encouraged by the IRS and offers a ton of benefits over paper filing, such as quicker and more efficient submission and turnaround time.

Typically when using an IRS authorized software provider, there are many rounds of data validation to ensure that your data is ready to file. This just isn’t possible with traditional paper filing.

E-filing also ensures that your filing will be submitted much faster and you’ll get your results within a few days. A quicker turnaround time means that filers are able to review errors and make corrections with more time to spare.

Penalties for NOT E-filing

There can be hefty fines for failing to e-file when required. For tax year 2022, this type of penalty was up to $290 per form that filed in an incorrect format.

Please note that the IRS will continue to grant hardship waivers to grant relief for these types of penalties.

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