New IRS Rule Requires Electronic Filing of Informational Returns

Businesses, Payroll, Tax Credits, Tax Planning

The Internal Revenue Service (IRS) recently passed a new rule that requires all filers of certain informational returns to file them electronically if they file more than 10 returns combined. This rule applies to all filers, regardless of their size or industry.

The rule applies to the following informational returns:

  • Form W-2, Wage and Tax Statement
  • Form 1099-MISC, Miscellaneous Income
  • Form 1099-NEC, Non-employee Compensation
  • Form 1099-INT, Interest Income
  • Form 1099-DIV, Dividend Income
  • Form 1099-B, Proceeds from Brokerage Accounts
  • Form 1099-G, Certain Government Payments
  • Form 1099-K, Payments Made in Settlement of Merchant Card and Third Party Network Transactions

Filers who fail to comply with the new rule may be subject to penalties. The penalty for each failure to file electronically is $30 per return, up to a maximum of $3,000 per year.

If you are a filer who is affected by the new rule, you may be wondering how to comply. There are a number of electronic filing options available, including:

  • The IRS’s FIRE system
  • Commercial electronic filing providers

The IRS’s FIRE system is a free option that is available to all filers. However, it can be complex to use and may not be suitable for all filers. Commercial electronic filing providers offer a variety of services, including:

  • Data entry and preparation
  • E-file processing
  • Audit support

When choosing an electronic filing provider, it is important to compare the different options available and choose a provider that meets your specific needs.

If you would rather not handle the payroll and reporting process yourself, Shah Tax & Accounting Services can help. We can take over the entire process for you, ensuring that your informational returns are filed on time and accurately. We can also provide you with audit support if necessary.

To learn more about how Shah Tax & Accounting Services can help you comply with the new IRS rule, please contact us today.

Here are some additional benefits of working with Shah Tax & Accounting Services:

  • We are a reliable and experienced provider of payroll and reporting services.
  • We are committed to providing accurate and timely filing.
  • We offer a variety of electronic filing options to meet your needs.
  • We can provide audit support if necessary.
  • We are dedicated to providing excellent customer service.

Contact us today to learn more about how we can help you comply with the new IRS rule and take over your payroll and reporting process.

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Businesses, Payroll, Tax Credits, Tax Planning

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