Taxpayer First Act Continues to Encourage E-Filing for Businesses

How to Make a Form 1099 Correction in a Few Simple Steps

The Taxpayer First Act signed into law on July 1, 2019, cleared the way for reforms aimed at improving the tax return process for taxpayers. But it also implemented some new e-filing requirements for businesses.

Lower E-Filing Thresholds

As part of the act, many businesses are no longer able to submit paper forms. Previously, electronic filing was mandatory if the employer had 250 or more forms to complete. Over the next two years, the threshold will be significantly reduced.

  • 2021* — The number drops to 100 forms
  • 2021 — Partnerships with 50 or more forms must e-file

For partnerships, the limits are as follows:

  • 2020 — Partnerships with 100 or more forms must e-file
  • 2021 — Partnerships with 50 or more forms must e-file

The act also requires that all partnerships with more than 100 partners file their returns electronically. The IRS defines partnerships as small businesses with two or more owners that are not classified as sole proprietorships or corporations.

Stay One Step Ahead

If you need to e-file informational returns — like 1099s, W-2s or ACA forms — look no further than efile4Biz. Simply fill out your forms directly on the website or upload your data file. Then efile4Biz will print and mail forms to your recipients, as well as electronically file directly with the necessary Federal agencies. It’s the fastest, most convenient way to satisfy your information reporting requirements.

*The 2020 forms will be filed in 2021.

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