For 2023 employers need to electronically file their 1099’s if they are issuing 10 or more!
Most vendor charge a $3 fee per form for submission, but you have to retype in all the information.
The final regulations reflect changes made by the Taxpayer First Act (TFA) to increase e-filing without undue hardship on taxpayers.
Specifically, the final regulations:
- reduce the 250-return threshold enacted in prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year. The final regulations also create several new regulations to require e-filing of certain returns and other documents not previously required to be e-filed;
- require filers to aggregate almost all information return types covered by the regulation to determine whether a filer meets the 10-return threshold and is required to e-file their information returns. Earlier regulations applied the 250-return threshold separately to each type of information return covered by the regulations;
- eliminate the e-filing exception for income tax returns of corporations that report total assets under $10 million at the end of their taxable year, and
- require partnerships with more than 100 partners to e-file information returns, and they require partnerships required to file at least 10 returns of any type during the calendar year to e-file their partnership return.
To facilitate this process you can use an outside vendor for the above mentioned $3 per form, or with the assistance of the IRS’s help with this process, the IRS created a new, free online portal last month to help businesses 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.
IRIS is not user friendly at this juncture.