IRS Proposes Changes for Electronic Filing of Forms (article)
The Internal Revenue Service (IRS) is proposing a change in the required electronic filing of certain reporting and disclosure forms. Specifically, these regulations, if finalized, would require an employer to aggregate all of its forms including the Form W-2, the Form 1099 series, and the Forms 1094 and 1095-B and C series, to determine whether it meets the 250-form threshold. An employer is obligated to file forms electronically with the IRS if it files 250 or more forms. Currently, an employer is not required to collectively file different types of forms; these proposed rules would require aggregation. Further, if an employer is required to file electronically, then any corrected forms must likewise be filed electronically.
The IRS is proposing these rules because it believes it is simpler and more cost effective to file electronically. It does provide a way to seek a waiver from the electronic filing requirements if the filer believes it would be too burdensome.
Comments on these regulations are due by July 30, 2018. If these regulations are finalized, they are expected to take effect for filings due on or after January 1, 2019. Small employers who have been exempt from the 250-threshold electronic filing requirements will want to keep an eye on this matter.