Amended E-file Rules for Partnership Returns and More
Final regulations amending rules for filing returns electronically (e-file) were published by the IRS on February 23, 2023. The regulations will affect persons who are required to file:
- partnership returns
- corporate income tax returns
- unrelated business income tax returns
- withholding tax returns
- certain information returns
- registration statements
- disclosure statements
- actuarial reports
- certain excise tax returns
Specifics of New Regulations
Changes made by the Taxpayer First Act (TFA) are reflected in the final regulations. The goal is to increase e-filing without undue hardship on taxpayers. Specifically, the final regulations are:
- Reduce the 250-return threshold enacted in prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year. The final regulations also create several new regulations to require e-filing of certain returns and other documents not previously required to be e-filed
- Require filers to aggregate almost all information return types covered by the regulation to determine whether a filer meets the 10-return threshold and is required to e-file their information returns. Earlier regulations applied the 250-return threshold separately to each type of information return covered by the regulations
- Eliminate the e-filing exception for income tax returns of corporations that report total assets under $10 million at the end of their taxable year
- Require partnerships with more than 100 partners to e-file information returns, and they require partnerships required to file at least 10 returns of any type during the calendar year to e-file their partnership return.
The IRS created a free online portal called the Information Returns Intake System (IRIS), to help businesses file their Form 1099s electronically. If your business sent 1099 forms on paper to the IRS, the new portal will help streamline and expedite the process.
Should you have questions about this topic, or any other topics related to your personal or business situation, please contact us at any time.
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