If you are a business owner or nonprofit organization that paper-files 1099s, you need to read this!
On February 21, 2023, pursuant to the Taxpayer First Act, the Department of the Treasury and the Internal Revenue Service (“IRS”) issued the final regulations amending the rules for filing returns and other documents electronically (e-file). These regulations will require certain filers to e-file beginning in 2024.
This regulation affects filers of partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns, registration statements, disclosure statements, notifications, actuarial reports and certain excise tax returns.
It is important to note that the final regulations require filers to aggregate almost all information return types covered by the regulations (forms W-2, forms 1099-series, withholding returns, corporate income tax returns, etc.) to determine whether a filer meets the 10-return threshold and is required to e-file their information returns.
To help with this process, the IRS created a new, free online portal to help business file Form 1099 series information returns electronically. Known as the Information Returns Intake System (IRIS), this free electronic filing service is secure, accurate and requires no special software. Though available to any business of any size, IRIS may be especially helpful to any small business that currently sends their 1099 forms on paper to the IRS.
For more information on how this may impact your business, visit irs.gov or speak with your tax professional.