Melissa Doumbia, CPP
What Factors Contribute to the Valuation of a Company?
Emmett Mulcahy, CPA, CVA: July 24, 2024
Editor's note: this blog was updated in 2024 with additional resources for business owners.
October 18, 2023 – The IRS recently introduced new requirements that will reduce the threshold for mandatory e-filing of certain information returns and forms. This change will affect many organizations that have historically paper filed. In addition, the threshold will be an aggregate number of forms instead of being based on a specific form type. Filers should review the new regulations and how they might impact your organization.
What Is the New IRS E-filing Requirement?
Beginning on January 1, 2024, the threshold for mandatory e-filing of certain information returns and forms will drop to 10 from 250. This new threshold is for an aggregate number of forms. For example, if you historically paper filed six 1099 forms and 4 W-2 forms, you would now be required to file them all electronically.
What Steps Should Filers Take Next?
Organizations that have been previously reporting on paper either need to register with the IRS to report electronically or need to find a provider that can file electronically on their behalf.
Filers should make note that 1099 forms will need to be filed with the IRS’s new e-file system called the Information Returns Intake System (IRIS) portal. This portal, separate from the portal required to files W-2 forms, was unveiled in early 2023 and was developed specifically for the 1099 series of informational returns. The older Filing Information Returns Electronically (FIRE) portal is also still available.
What Are the Penalties for Not Correctly E-Filing Returns?
Failure to meet the new e-filing requirements may result in one or more penalties, including failure to file, failure to file in a timely manner, or failure to include correct information on a return. The penalties can range from $60-$630 per return.
Questions?
Make sure to contact your payroll advisor or CPA to help you sort through how to comply with this new requirement.
The full IRS release regarding the new regulations can be found here.
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Kory Boyer, MBA: July 9, 2024
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New Minnesota Independent Contractor Law Imposes New Penalties
Melissa Doumbia, CPP: June 26, 2024
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