The Department of the Treasury and the Internal Revenue Service (IRS) has issued final regulations amending the rules for filing information returns. Starting in 2024, which corresponds to the 2023 calendar year, if you file an aggregate of 10 or more returns in a calendar year (drastically reduced from 250 returns) you will be required to e-file.
Example: In the tax year 2023 filing season, which corresponds to the calendar year 2024, Company W is obligated to submit 4 Forms 1099-NEC (Nonemployee Compensation) and 4 Forms 1099-DIV (Dividends and Distributions), along with 2 Form W-2 (Wage Statement), making a total of 10 returns. Since Company W is mandated to file 10 returns based on calculations for the calendar year 2024, corresponding to the tax year 2023 filing season, the company must opt for electronic filing for all its tax year 2023 Forms 1099-NEC and 1099-DIV with the IRS, and Forms W-2 with the Social Security Administration.
What Is an Information Return?
Information returns refer to documents, distinct from tax returns, mandated by the IRS to record specific financial transactions. The FIRE System allows electronic filing of the following forms.
- Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding
- Form 1097-BTC, Bond Tax Credit
- Form 1098, Mortgage Interest Statement
- Form 1098-C, Contributions of Motor Vehicles, Boats, and AirplanesPDF
- Form 1098-E, Student Loan Interest StatementPDF
- Form 1098-F, Fines, Penalties and Other AmountsPDF
- Form 1098-T, Tuition StatementPDF
- Form 1098-Q, Payments from Qualified Education Programs (Under Section 529 and 530)
- Form 1099-A, Acquisition or Abandonment of Secured PropertyPDF
- Form 1099-B, Proceeds from Broker and Barter Exchange TransactionsPDF
- Form 1099-C, Cancellation of DebtPDF
- Form 1099-CAP, Changes in Corporate Control and Capital StructurePDF
- Form 1099-DIV, Dividends and DistributionPDF
- Form 1099-G, Certain Government Payments
- Form 1099-INT, Interest IncomePDF
- Form 1099-K, Merchant Card and Third Party Network PaymentsPDF
- Form 1099-LS, Reportable Life InsurancePDF
- Form 1099-LTC, Long Term Care and Accelerated Death BenefitsPDF
- Form 1099-MISC, Miscellaneous Income
- Form 1099-NEC, Nonemployee CompensationPDF
- Form 1099-OID, Original Issue DiscountPDF
- Form 1099-PATR, Taxable Distributions Received From CooperativesPDF
- Form 1099-Q, Payments from Qualified Education Programs
- Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. and IRA Contribution InformationPDF
- Form 1099-S, Proceeds From Real Estate Transactions
- Form 1099-SA, Distributions From an HSA, Archer MSA, or Medicare Advantage MSAPDF
- Form 1099-SB, Seller’s Investment in Life Insurance ContractPDF
- Form 3921, Exercise of an Incentive Stock Option Under Section 422(b)
- Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c)
- Form 5498, IRS Contribution Information
- Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips
- Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits
- Form 8596, Information Returns for Federal Contracts
- Form W-2 G, Certain Gambling Winnings
A Guide to the IRS's New Online Portal, IRIS, Simplifying the Transition from Paper to E-File Process
The IRS has introduced a helpful online portal called the Information Returns Intake System (IRIS) to aid individuals who traditionally filed their forms on paper in navigating the e-file process for Forms 1099.
Let us provide assistance for you.
If you file with Avizo, we always file your forms electronically. As experts in the field, we are dedicated to assisting service-based organizations in achieving their objectives. Feel free to contact us if you would like to discuss the services that could enhance the benefits for your organization. Avoid the repercussions of penalties for noncompliance, including potential fines and legal consequences, by ensuring timely and accurate filing in the required manner. If you would like further clarification on this topic or assistance with electronically filing your information returns, please contact one of our experts at 251-928-2443.
Erann Thompson
Erann is our Director of Advisory Services and she collaborates closely with business owners to identify the optimal mix of accounting cloud applications, aiming to enhance efficiency and profitability for your business.
