Postponement of 1099 and W2 E-File Requirement

The IRS has announced that it is deferring the effective date of the lower threshold for the requirement for businesses to electronically file Forms W-2 or Forms 1099.  For the 2020 tax year, both thresholds will remain 250, which is the same as in prior years.

The reduction of the threshold to 100 for the 2020 tax year that was set forth in the Taxpayer First Act of 2019, enacted on July 1, 2019, is deferred until such time as the Treasury Department issues regulations related to that reduction.  (The Taxpayer First Act of 2019 scheduled the threshold to be further reduced to 10 Forms W-2 or Forms 1099 for the 2021 tax year, and the effective date of this further reduction in the threshold will also be effective only when new regulations are issued.)

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