Beginning in 2024, any organization that files more than 10 information returns at the Federal Level is now required to file those forms electronically. Prior to this new measure, the threshold for electronic filing was 250.
If this mandate is broken, the penalty can be up to $100 per form.
This requirement includes dozens of different form types so please do your own research on the specifics, but the following missive is directly from the IRS Website…
the threshold to 10 for which employers must file certain information returns electronically, including Forms W-2, W-2AS, W-2GU, W-2VI, and Form 499R-2/W-2PR (collectively Forms W-2), but not Form W-2CM….
The following information return forms must be added together for this purpose: Form 1042-S, the Form 1094 series, Form 1095-B, Form 1095-C, Form 1097-BTC, Form 1098, Form 1098-C, Form 1098-E, Form 1098-Q, Form 1098-T, the Form 1099 series, Form 3921, Form 3922, the Form 5498 series, Form 8027, and Form W-2G.
Included in the mandate are your 2023 W-2’s and W-3 because they were due to be filed in January of 2024.
It should be noted that the quarterly payroll tax returns including forms 941 and 940 are not a part of this new requirement.
Let me leave you with this.
This is nothing more than the IRS continuing to automate as many of their operations as possible. Given their difficulties in staffing, and the competency void which has occurred with senior agents leaving or retiring, they need the machines to do as much of the heavy lifting as possible.
This will lead to even more problems with the automated IRS Letter System. I can’t tell you how many letters we’ve been asked to respond to that simply make no sense at all. Since the machines are creating and sending these out, we can only expect more of the same.
If you’re still doing your payroll by hand, this may necessitate a switch to an electronic system.
This communication is merely a reminder. As we’re getting in the information to complete your year end returns, we’re seeing more clients that may be in violation of this new rule.
Please understand that anything the government can do to raise their revenues, especially through penalties, will continue. No politician wants to raise taxes because that’s how they get fired. Let’s remember what happened to President Bush the first.
But if they can increase tax revenues through assessing penalties, their voters will remain none the wiser.
We’re all going to get through this. Let’s get through it together.
As an inducement, we’re offering 33% off your first six months of bookkeeping and / or the first three months of electronic payroll services on a complimentary basis. In order to claim this benefit, please click on the appropriate button below and provide your contact information. We’d love to help.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
www.AccountingSolutionsLtd.com
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.