1099 & W2 E-File Requirement

This requirement has been postponed.  See our November 19, 2020 post for details.

Effective for the 2020 tax year, businesses that file more than 100 Forms W-2 or Forms 1099 must file such returns electronically.  As a result, practitioners with clients who will be required to electronically file these forms for the 2020 tax year in January of 2021 must register to be able to electronically file such returns, when required.  For prior tax years, the threshold was 250 forms.

Information about registering and electronically filing Forms W2 is available at: https://www.ssa.gov/employer/, and Forms 1099 is available at: https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire.    

The registration process can take several weeks, so practitioners need to begin the process early enough to make sure that they are registered in time to begin e-filing in January of 2021.

The threshold for required electronic filing will be cut to 10 Forms W-2 or Forms 1099 for the 2021 tax year.  Such forms will be filed during January of 2022.

A more detailed discussion on this new requirement appears on page 55 of the 2019 Edition of the Individual Tax Year-End Workshop Reference Book.