Federal E-Filing Thresholds Reduced For Upcoming Calendar Years

As a part of the Taxpayers First Act of 2019, the thresholds for filing information returns electronically will see a reduction in the years approaching and after 2021.

Per Section 2301 of the Act, electronic filing will be required for filers submitting 250 or more forms prior to calendar year 2021. That threshold will be reduced to 100 forms during the calendar year of 2021, and again to 10 forms for calendar years after 2021. A special rule applies to partnerships for electronic filing requirements during the calendar years between 2018 and 2021: 200 forms for calendar year 2018, 150 forms for calendar year 2019, 100 forms for calendar year 2020, and 50 forms for calendar year 2021.

This change will likely be included in the 2020 final draft of the General Instructions for Certain Information Returns, which is due out later this year. To review the Taxpayers First Act of 2019, please click here.

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Author

Paul Ogawa

Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.
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