Be Ready to File All Information Returns Electronically
Taxpayers who file more than 250 information returns have been required to file them electronically. This rule has been on the books for several years.
The Taxpayer First Act signed into law July 2019 now requires taxpayers who issue 10 or more information returns to file them electronically. The IRS issued regulations last week indicating the new rules.
For returns filed in 2022 (for 2021 information returns such as any 1099 form), you will be required to file electronically if you file at least 100 returns. Starting in 2023, the requirement will drop to 10.
Most accounting software programs have this already built into the software, but if you have not filed these returns electronically in the past, you may only have one more year before you must file them that way.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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