Historically, businesses were not required to file information returns electronically unless 250 or more returns of one type were filed. The Internal Revenue Service has now substantially modified the electronic filing threshold for information returns, including Form W-2, that are filed in calendar years after December 31, 2023. The updated requirement not only lowers the threshold to ten returns, but also requires information returns to be aggregated for the purpose of determining whether the ten-return threshold has been satisfied. The full list of the information returns that are required to be aggregated can be viewed on the IRS’ website.
Additionally, any person required to file information returns electronically under this new requirement must also file any corrected returns that may be needed, regardless of the number of corrected returns being filed.
The new electronic filing requirement will apply to Form W-2 for tax year 2023 since they are filed in January 2024.