IRS Electronic Filing Requirement Expanded

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The IRS released a final rule which expands the requirement to file certain information electronically. This includes the Affordable Care Act’s (ACA) reporting requirements under Sections 6055 and 6056.

Expanded Mandatory Electronic Filing

The rule implements a law change which lowers the 250-return threshold for mandatory electronic reporting to 10 returns for:

• ACA Reporting (Forms 1094-B/1095-B and Forms 1094-C/1095-C)
• Form 5330 (Return of Excise Taxes Related to Employee Benefit Plans)
• Form 8955-SSA (Annual Registration Statement Identifying Separated Participants with Deferred Vested Benefits)

Starting in 2024, only small employers can report to the IRS on paper forms. Employers filing returns in 2023 are still subject to the 250 thresholds for electronic filing.

Employers that have been filing paper returns will need to consider how they will transition over to electronic filing. Download the bulletin for more details.