Starting in the 2023 tax year, businesses filing 10 or more information returns are required to e-file them with the IRS. This includes common forms like W-2s and 1099s. But how does this impact taxpayers, and does the IRS immediately compare these forms? This article explores the new e-filing mandates and the Information Returns Intake System (IRIS) to answer these questions.
Understanding the New E-filing Requirements
The IRS has implemented mandatory e-filing for businesses submitting 10 or more information returns annually. This shift aims to reduce paper filings, improve accuracy, and streamline the tax process. Forms included in this mandate are W-2s (already e-filed with the Social Security Administration) and various 1099 forms. Businesses must apply for a Transmitter Control Code (TCC) to e-file, which can take up to 45 days to process. While the IRS doesn’t explicitly state immediate comparison of 1099s, the electronic format facilitates faster processing and cross-referencing with other tax documents.
Introducing the IRIS Filing Portal
To aid taxpayers with these new requirements, the IRS launched the Information Returns Intake System (IRIS) in January 2023. This free, web-based platform simplifies the e-filing process for information returns, eliminating the need for specialized software. IRIS is accessible to businesses of all sizes and offers a user-friendly alternative to paper filing. Enrollment for IRIS is currently open, and the IRS encourages timely registration.
Key Considerations for Tax Year 2024 and Beyond
For tax year 2024, taxpayers ordering forms should expect delivery within 15 business days. However, orders for tax year 2025 may experience delays if certain products are unavailable. The IRS might hold the entire order until all items are in stock or ship products individually as they become available. Continuous-use forms like 1098, various 1099s, and their instructions will be updated as needed.
Important Notes on Form Availability and Ordering
The IRS imposes quantity limits on ordered forms: 100 per form type (with instructions automatically included) and 5 copies per instruction or publication. Some forms, including W-2 series, W-3, 1096, and others, are no longer self-duplicating carbonless forms. Certain information returns, such as 1097-BTC, 1098-C, and several others, are exclusively available in electronic format and can be downloaded from the IRS website.
Conclusion: Embracing the Digital Shift in Tax Filing
The IRS’s move toward mandatory e-filing and the introduction of IRIS signify a significant shift in tax reporting. While the IRS doesn’t confirm immediate comparison of 1099s, the digital system undoubtedly enables faster processing and data analysis. By understanding the new requirements, utilizing resources like IRIS, and staying informed about form availability, taxpayers can navigate the evolving landscape of tax filing with greater efficiency and accuracy. The IRS provides comprehensive resources and encourages taxpayers to explore their website for detailed information and guidance. Taxpayers can order tax forms directly from the IRS website.
