IRS Issues Final Regulations Updating Electronic Filing Requirements for Information Returns

Paul Ogawa
February 22, 2023

The Department of the Treasury and the Internal Revenue Service (IRS) recently published final regulations updating the electronic filing requirements for specified returns and other documents. These final regulations codify required changes made by the Taxpayer First Act which was signed into law back in 2019.

Effective for calendar year 2024 (impacting returns filed after December 31, 2023), the electronic filing requirement will lower the form threshold amount from 250 or more returns down to 10 or more returns for the taxable year. This updated threshold will now be calculated in the aggregate rather than on a per-return-type basis, effectively directing a vast majority of those with filing obligations to file electronically with the IRS. Further, corrections must be made in the same manner as the original return: if you file an original electronically, you must also make the correction electronically.

One update of note involves the 1042 return: previously filed on paper, this return type is now included in the updated electronic filing threshold referenced previously, meaning that most filers will now be required to file 1042 returns electronically. Further, for those claiming credits on Line 67 of Form 1042, the IRS intends to address the required attachment of associated 1042-S returns in an electronic manner in the near future.

To review these final regulations, click here to review TD 9972. These final regulations will be published in the Federal Register as of February 23, 2023.

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Paul Ogawa

Paul Ogawa is a Senior 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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