In yesterday’s EO Update we reviewed Form W-2, Wage and Tax Statement, and Form 1099-NEC, Nonemployee Compensation, to determine which form should be filed by an employer to report payments made to workers. In today’s EO Update we will discuss electronic filing requirements for Form W-2 and Form 1099-NEC and also take a closer look at the IRS Information Returns Intake System (IRIS).

Electronic Filing Requirements

The Department of the Treasury and the Internal Revenue Service issued final regulations amending the rules for filing returns and other documents electronically. These regulations affect filers of many types of returns including information returns Form W-2 and Form 1099-NEC.

For information returns required to be filed on or after Jan.1, 2024, the final regulations:

reduce the 250-return threshold from prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year.
require filers to aggregate almost all information return types covered by the regulation to determine whether a filer meets the 10-return threshold and is required to e-file their information returns.

Starting tax year 2023, if you have 10 or more information returns, you must file them electronically. To determine if returns must be filed electronically, an employer must add together the number of information returns and the number of Forms W-2 required to be filed in a calendar year. If the total is at least 10 returns, they must all be filed electronically. The new threshold is effective for information returns required to be filed in calendar years beginning with 2024. The new rules apply to tax year 2023 Forms W-2 because they are required to be filed by Jan. 31, 2024.

Information Returns Intake System (IRIS)

The Information Returns Intake System (IRIS) Taxpayer Portal is a system that provides a no cost online method for taxpayers to electronically file Form 1099-series information returns. This free electronic filing service is secure, accurate and requires no special software. IRIS may be especially helpful to any organization that currently sends paper Forms 1099 to the IRS. With IRIS business taxpayers can:

Enter information into the portal or upload a file with a downloadable template in IRIS.
Download completed copies of Form 1099-series information returns.
Submit extensions.
Make corrections to information returns filed with IRIS.
Get alerts for input errors and missing information.
Get a confirmation in a little as 48 hours that the IRS received the return.
Reduce expenses on paper, postage, storage space and trips to the post office

IRIS allows you to enter data to create Forms 1099 by either keying in the information or uploading a .csv file. For more information see Publication 5717, IRS Portal User Guide. Alternatively, taxpayers may continue to use the Filing Information Returns Electronically (FIRE) system to file information returns.

If you file Forms 1099-NEC on paper you must submit them with Form 1096, Annual Summary and Transmittal of U.S. Information Returns. If you file more than one type of information return on paper -- for example, 1099-NEC, 1099-MISC, 1099-K, etc. -- you must prepare a separate Form 1096 for each type of information return. Form 1096 is not required for filing electronically.

All employers are encouraged to file electronically. E-filing not only saves you time, but is also secure and accurate.

For more information on electronic filing, see:

For specifications for electronic filing of Forms W-2 with the Social Security Administration, visit Business Services Online (BSO) or call 800-772-6270 (TTY 800-325-0778).

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