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The IRS Reduces Electronic Filing Form Threshold For 2024
Robyn Carlini • March 8, 2023
IRS Reduces Electronic Filing Form Threshold For 2024
On February 21, 2023, the Department of the Treasury and the Internal Revenue Service issued final regulations
that revise the rules for electronic filing of returns and other documents. The new limit will require certain filers to use e-file starting in 2024 for ACA filing as well as other commonly used tax documents, such as W-2 and 1099 forms.
Among the changes, the threshold for electronic filing has been lowered from 250 returns to 10 or more returns in a calendar year.
This means that any organization that files 10 or more returns or forms in a calendar year will be required to e-file in 2024.
The 10-return threshold for information returns includes the following specific forms: Forms 1042-S, 1094 series, 1095-B, 1095-C, 1097-BTC, 1098, 1098-C, 1098-E, 1098-Q, 1098-T, 1099 series, 3921, 3922, 5498, 8027, W-2, and W-2G.
The new regulations also introduce an aggregation rule that combines all previously mentioned form types to determine if the filer meets the 10 return threshold. For example, the amount of W-2 forms will be combined with the number of 1095 forms a company is required to file. If that amount is 10 or more, then that company has to electronically file all of the forms.
Consequences of this Regulation
The IRS anticipates an increase in e-filing in 2024 and more companies will be requesting a TCC code to e-file. The application for the TCC code is available on the
IRS FIRE page. The IRS is expecting an increase in applications for the codes in order to e-file.
Employer Takeaways:
- This new regulation will begin on January 1, 2024. The previous electronic threshold of 250 forms still remains in effect for calendar years 2022 and 2023.
- The aggregation rule combines the amount of all tax documents to e-file.
- If the original documents were e-filed, corrections to information returns must also be filed electronically.
About SyncStream
SyncStream has been e-filing for businesses since the inception of the Affordable Care Act with a tenured staff of ACA knowledge experts. For assistance with electronic filing, ACA compliance, and penalty assistance, contact SyncStream.
ACA Compliance needs can be simplified with SyncStream’s Total ACA
which includes electronic delivery.
Have Questions or Need More Information?
Join us to ensure you’re avoiding common mistakes that could lead to costly penalties. With the ACA filing deadline on March 31, 2025, fast approaching, this is your chance to ensure your reporting is error-free and penalty-proof. Join us as our Director of ACA Services, Ashley Pope, disusses how to get ahead of the curve and avoid the pitfalls that many organizations face during filing season.
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As part of the Tax Cuts and Jobs Act (TCJA), the Affordable Care Act’s (ACA) individual mandate penalty was repealed effective January 1, 2019; however, the TCJA did not repeal the employer mandate nor its reporting requirements. Employers should be prepared to respond to IRS Employer Shared Responsibility Provision (ESRP) penalty letters and continue to prepare for 2024 reporting, which will occur in the first quarter of 2025.
IRS Reduces Electronic Filing Form Threshold For 2024
On February 21, 2023, the Department of the Treasury and the Internal Revenue Service issued final regulations
that revise the rules for electronic filing of returns and other documents. The new limit will require certain filers to use e-file starting in 2024 for ACA filing as well as other commonly used tax documents, such as W-2 and 1099 forms.
Among the changes, the threshold for electronic filing has been lowered from 250 returns to 10 or more returns in a calendar year.
This means that any organization that files 10 or more returns or forms in a calendar year will be required to e-file in 2024.
The 10-return threshold for information returns includes the following specific forms: Forms 1042-S, 1094 series, 1095-B, 1095-C, 1097-BTC, 1098, 1098-C, 1098-E, 1098-Q, 1098-T, 1099 series, 3921, 3922, 5498, 8027, W-2, and W-2G.
The new regulations also introduce an aggregation rule that combines all previously mentioned form types to determine if the filer meets the 10 return threshold. For example, the amount of W-2 forms will be combined with the number of 1095 forms a company is required to file. If that amount is 10 or more, then that company has to electronically file all of the forms.
Consequences of this Regulation
The IRS anticipates an increase in e-filing in 2024 and more companies will be requesting a TCC code to e-file. The application for the TCC code is available on the
IRS FIRE page. The IRS is expecting an increase in applications for the codes in order to e-file.
Employer Takeaways:
- This new regulation will begin on January 1, 2024. The previous electronic threshold of 250 forms still remains in effect for calendar years 2022 and 2023.
- The aggregation rule combines the amount of all tax documents to e-file.
- If the original documents were e-filed, corrections to information returns must also be filed electronically.
About SyncStream
SyncStream has been e-filing for businesses since the inception of the Affordable Care Act with a tenured staff of ACA knowledge experts. For assistance with electronic filing, ACA compliance, and penalty assistance, contact SyncStream.
ACA Compliance needs can be simplified with SyncStream’s Total ACA
which includes electronic delivery.
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