The IRS has issued final regulations on efile for businesses

New IRS eFile Law!

The IRS has issued final regulations on eFile for businesses.

Written by: Adams Tax Services

The IRS has issued final regulations on specified returns for e-Filing. The eFile threshold on these returns has now dropped from 250 to 10, announced in February of 2023. Businesses should pay attention to and follow these new regulations to avoid paying major penalties for incorrect filing with the IRS and SSA. These IRS regulations result in the following:

1. reduce the 250-return threshold enacted in prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year. The final regulations also create several new regulations to require e-filing of certain returns and other documents not previously required to be e-filed.

2. require filers to aggregate almost all information return types covered by the regulation to determine whether a filer meets the 10-return threshold and is required to e-file their information returns. Earlier regulations applied the 250-return threshold separately to each type of information return covered by the regulations.

3. eliminate the e-filing exception for income tax returns of corporations that report total assets under $10 million at the end of their taxable year, and require partnerships with more than 100 partners to e-file information returns, and they require partnerships required to file at least 10 returns of any type during the calendar year to e-file their partnership return.

4. Corrections must be filed the same way the original was submitted. If you eFile the original then you must eFile the correction. If you mailed in the original then you must mail in the correction.

For detailed information, please click the link.

For a detailed list of forms and documents that fall under the new IRS regulations, please click the link.

We hope you find this information helpful and, as always, Adams Tax Services is here to keep you informed. Because taxes shouldn’t be taxing.