Untitled Document

April 2023

General IRS Filing Instructions for 2023 Reporting Forms to be Filed in 2024 - Clarification Needed

The IRS makes the following statements in the General Instructions for Certain Information Returns (2023).

These instructions are set forth on 69 pages. Some of these statements are inconsistent. The IRS needs to clarify its discussion of the 250/100/10 limit. Obviously, this is very important to those having to comply with the IRS rules. Hopefully, the IRS will not impose the filing requirement of 10 forms for the 2023 forms to be filed in 2024.

Page 1. E-Filing returns
E-filing returns. The Taxpayer First Act of 2019, enacted July 1, 2019, authorized the Department of the Treasury and the IRS to issue regulations that reduce the 250 return requirement for 2023 tax returns. However, the e-file threshold for returns required to be filed in 2023 remains at 250. The e-file threshold of 10 is effective for returns required to be filed on or after January 1, 2024.

Page 13. Online fillable forms
Due to the very low volume of paper Forms 1097-BTC, 1098-C, 1098-MA, 1098-Q, 1099-CAP, 1099-LTC, 1099-Q, 1099-QA, 1099-SA, 3922, 5498-ESA, 5498-QA, and 5498-SA received and processed by the IRS each year, these forms have been converted to on line fillable PDFs. You may fill out these forms, found online at IRS.gov/FormsPubs, and send Copy B to each recipient. For filing with the IRS, follow your usual procedures for filing electronically if you are filing 100 or more of a form type. If you are filing any of these forms on paper due to a low volume of recipients, for these forms only, you may file a black-and-white Copy A that you print from the IRS website with Form 1096. See part G for paper document reporting. You must not use these on line fillable forms if you are required to file electronically.

Page 14. Electronic Reporting
E-file is available, and may be required, for filing all information returns discussed in these instructions, other than Forms 1099-QA and 5498-QA (see Who must file electronically ,later). Different types of payments, such as interest, dividends, and rents, may be reported in the same submission.

You can file Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, except Forms 1099-QA and 5498-QA, electronically through the Filing Information Returns Electronically System (FIRE System); however, you must have software that can produce a file in the proper format according to Pub. 1220. Pub. 1220 provides the procedures for reporting electronically and is updated annually. Pub. 1220 is available at IRS.gov. The FIRE System does not provide a fill-in form option for information return reporting. The FIRE System operates 24 hours a day, 7 days a week. You may access the FIRE System online at FIRE.IRS.gov. Forms 1099 may also be filed using the IRIS, described later, without special software. Forms 1099-QA and 5498-QA can only be filed on paper.

Information Reporting Intake System (IRIS). The IRS has developed an online portal that allows taxpayers to electronically file Forms 1099 after December 31, 2022, for 2022 and later returns. Users should follow the specifications in Pub. 5717, IRIS Taxpayer Portal User Guide. Go to IRS.gov/IRIS for additional information and updates.
Due dates. File Forms 1097, most Forms 1098, and most Forms 1099, 3921, 3922, or W-2G electronically by April 1, 2024. File Forms 5498, 5498-ESA, 5498-QA, or 5498-SA by May 31, 2024. See part M about furnishing Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, or statements, to recipients. File Form 1099-NEC by January 31, 2024.

How to request an extension of time to file. For information about requesting an extension of time to file, see Extension of time to file, earlier, under part C.

If you file electronically, do not file the same returns on paper.

Who must file electronically. If you are required to file 250 or more information returns during the year, you must file electronically. the 250-or-more requirement applies separately to each type of form. For example, if you must file 500 Forms 1098 and 100 Forms 1099-A, you must file Form1098 electronically, but you are not required to file Forms 1099-A electronically.
The e-file requirement does not apply if you apply for and receive a hardship waiver. See How to request a waiver from filing electronically, later.

If you are required to file electronically but fail to do so, and you do not have an approved waiver, you may be subject to a penalty. The IRS encourages you to file electronically.

Filing requirement applies separately to originals and corrections. The electronic filing requirements apply separately to original returns and corrected returns. Originals and corrections are not aggregated to determine whether you are required to file electronically. For example, if you file 400 Forms 1098 electronically and you are making 75 corrections, your corrections can be filed on paper because the number of corrections for Form 1098 is less than the 250 filing requirement. However, if you are filing 250 or more Form 1098 corrections, they have to be filed electronically.