The IRS has proposed regulations that would require that all information returns, regardless of type, be taken into account to determine whether a business meets the 250-return threshold that determines whether information returns must be filed electronically [83 F.R. 24948, 5-31-18].
Aggregation of forms. The proposed regulations would add together all of a business’ information returns to determine if the 250-return threshold is met. For example, under the proposed regulations, if a business is required to file 200 Forms 1099-MISC, Miscellaneous Income, and 200 Forms W-2, Wage and Tax Statement, that business must file all its Forms 1099-MISC and W-2 electronically because it is required to file a total of at least 250 information returns covered by Treas. Reg. §301.6011-2(b).
Corrected forms. The proposed regulations would require that corrected information returns be filed electronically, regardless of the number being filed, if a business is required to file information returns electronically.
Effective date. If finalized, the regulations would be effective for information returns required to be filed after December 31, 2018, and for corrected information returns filed after December 31, 2018. This includes 2018 Forms W-2, 1099-MISC, and 1095-C filed in early 2019.
Waivers still allowed. The proposed regulations do not amend the existing regulations allowing persons who are required to file returns electronically to request a hardship waiver of the electronic filing requirement.
The July issue of Payroll Currently (Vol. 26, Issue 6) will include in-depth coverage of the proposed regulations.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
