Taxpayer First Act: More Businesses Required to E-File Informational Returns

Taxpayer First Act: More Business Required to E-File Informational Returns

Published on July 25, 2019

Tax Reporting

On July 1, 2019, President Trump signed the Taxpayer First Act. This act proposes wide-sweeping changes in an effort to modernize the IRS and improve the efficiency of the taxpayer experience when filing taxes.

One specific initiative is to provide for the easier electronic submission of tax forms and supporting documentation. This is further evidence of the government’s commitment to e-filing. Electronic filing makes processing returns much easier for the IRS.

New E-Filing Thresholds

As part of the Taxpayer First Act, many businesses will no longer be able to submit paper forms. Currently, electronic filing is mandatory if the employer has 250 or more forms to complete. Over the next three years, the threshold will be significantly reduced.

In 2020, the number is the same. Companies filing 250 or more forms must e-file.
In 2021, the number drops to 100 forms.
In 2022, businesses filing just 10 or more forms must electronically file.

For partnerships, the limits are as follows:

In 2020, partnerships with 100 or more forms must e-file.
In 2021, partnerships with 50 or more forms must e-file.

The act also requires that all partnerships with more than 100 partners file on magnetic media. The IRS defines partnerships as small businesses with two or more owners that are not classified as sole proprietorships or corporations.

Easily Meet the New Requirements

If you need to e-file informational returns — like 1099s, W-2s or ACA forms — look no further than eFile4Biz.com. Simply fill out your forms directly on the website or upload your data file. Then eFile4Biz will print and mail forms to your recipients, as well as electronically file directly with the necessary government agencies. It’s the fastest, most convenient way to meet the new government mandates.