If you file Forms 1099 or W-2, among others, then you need to know the return threshold changes to the electronic filing requirements in 2024 so you can plan accordingly for tax season. The New E-filing Threshold In an effort to increase efficiency while better-serving taxpayers, the IRS has reduced the e-filing return threshold from 250 to 10. This new threshold goes into effect on January 1, 2024. Previously, the threshold was met by each return type. This new threshold is in aggregate, meaning that filers will total all of their return types to see if they meet the 10-return threshold. Does This New Threshold Apply to You? The 10-return threshold is applicable for these return types: Partnership returns Corporate income tax returns Unrelated business income tax returns Withholding tax returns Certain information returns Registration statements Disclosure statements Notifications Actuarial reports Certain excise tax returns Other Considerations These regulations also affect corporations and partnerships in additional ways. Corporations can no longer be exempt from e-filing their returns if they report less than $10 million in total assets at the end of their taxable year. Partnerships with more than 100 partners need to e-file their returns. They also must follow the aggregate 10-return threshold, including their partnership return. Available Waivers Limited situations allow for exemptions and waivers. Exemptions are granted to members of specific religious communities that prohibit the use of technology. Waivers, on the other hand, are permitted in certain circumstances, such as limited internet access, economic hardship caused by e-filing, or lack of proficiency in digital technology adoption. In order to be approved, these groups must demonstrate a sincere effort to e-file and provide evidence that e-filing would result in significant financial difficulties. To request a waiver, individuals must complete Form 8508, Application …
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