IRS proposes changes to electronic reporting requirements

IRS Proposes Changes to Electronic Reporting Requirements

The IRS has proposed regulations amending the rules for determining whether information returns must be filed electronically.  The proposed regulations would require that all information returns, regardless of type, be taken into account to determine whether a person meets the 250-return threshold and, therefore, must file the information returns electronically. The proposed regulations also would require any person required to file information returns electronically to file corrected information returns electronically, regardless of the number of corrected information returns being filed.

In the past, the 250-or-more electronic requirement applied separately to each type of form.  For example, if you had to file 500 Forms 1098 and 100 Forms 1099-A, you were required to file Forms 1098 electronically, but you were not required to file Forms 1099-A electronically.

To view the proposed rule click here.

Disclaimer – Any accounting, business or tax advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. This article is also not a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties.