Reminder: Lowered Electronic Filing Threshold Requirement for Returns Due in 2024

Changes to federal regulations governing electronic filing (e-filing) of certain returns went into effect on February 23, 2023. Under the updated regulations, most returns must be filed electronically beginning January 1, 2024, if the total number of forms to be filed is ten or more. Previously, the returns were not required to be e-filed unless the number of each separate form to be filed reached 250. 

Information Returns Affected

The regulations impact most returns that will be filed after December 31, 2023. These returns include, but are not limited to:

• Form 1120/1120-S
• Form 1065
• Form W2
• Form 1042-S
• Various Forms 1099
• Various Forms 1098

Taxpayers who can establish undue hardship will be granted a waiver from the e-filing requirement. Such waivers are requested by filing Form 8508, Request for Waiver from Filing Information Returns Electronically. 

Specific Changes for Businesses

The new regulations have specific changes for certain businesses. 

Before this change, corporations that reported total assets under $10 million at the end of their taxable year were granted an exception to the e-filing requirement for income tax returns. The regulations eliminate that exception.  

The regulations also require partnerships with more than 100 partners to e-file information returns. Additionally, partnerships required to file ten or more returns of any type in a calendar year are required to e-file their partnership return. 

This lowered threshold will effectively mandate many taxpayers, especially employers, to e-file their returns. Taxpayers who have not already transitioned to e-filing should prepare to do so starting January 1, 2024.