Attention: New Taxpayer First Act to Reduce the Electronic Filing Threshold for Information Returns
On July 1, 2019, President Trump signed the Taxpayer First Act of 2019. Among the wide-sweeping changes proposed by the law, the Taxpayer First Act aims to modernize the IRS, expand and strengthen taxpayer rights and services, and reduce identity theft through enhanced cybersecurity.
Modifications to E-File Thresholds
Of particular interest to accountants and small business tax filers, the Taxpayer First Act will reduce the threshold for the electronic filing of W-2 and 1099 information returns. The current 250-return threshold will remain the same for calendar year 2020, then drop to the following amounts in the coming years:
Calendar Year 2021 – 100 information forms
Calendar Year 2022– 10 information forms
For partnerships, the thresholds are lower — and will take effect sooner:
Calendar Year 2020 – 100 information forms
Calendar Year 2021– 50 information forms
Partnerships, for IRS purposes, are small businesses with two or more owners that are not classified as sole proprietorship or corporations.
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With more employers facing changing electronic filing requirements in the coming years, now is the perfect time to explore efile4Biz.com. It offers easy, efficient, online filing of annual W-2s and 1099s to save you time and keep you in compliance with the Taxpayer First Act.
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