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1099 Filing Requirements for 2023

December 14, 2023

Tax Year 2023

 The Taxpayer First Act of 2019, enacted July 1, 2019, authorized the Department of the Treasury and the IRS to issue regulations that reduce the 250-return requirement for 2023 tax returns. However, the e-file threshold for returns required to be filed in 2023 remains at 250. The e-file threshold of 10 is effective for returns required to be filed on or after January 1, 2024.

New paper filing threshold for W-2s and 1099s

The limit on how many paper filings you can file with the IRS has been drastically lowered in 2023 from 250 to 10. If you have 10 or more 1099s and W-2s combined, you must file them electronically. For example, if you have 7 employees and 3 1099 contractors, you'll need to e-file the W-2 and 1099 forms.

The IRS encourages any business, especially those that now file on paper, to switch to e-filing through the platform and share in its benefits.

These benefits include:

  • E-file security standards keep information safe and protected.

  • The portal is an accurate filing method that automatically detects filing errors and provides alerts for missing information.

  • Filers can submit automatic extensions and make corrections to information returns filed through the platform.

  • The IRS acknowledges receipt of the return in as early as 48 hours.

  • The platform keeps issuer information from year to year, and prior years filed through this platform, providing convenience to 1099 filers.

  • E-filing eliminates trips to the post office and can reduce office expenses for paper, postage and storage space.


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