The IRS has announced that starting in 2024, it is going to “reduce the 250-return threshold enacted in prior regulations to generally require electronic filing by filers of 10 or more returns in a calendar year.” However, to make e-filing easier, it has also rolled out a new system: Businesses can now file Form 1099 series information returns using a new online portal, available free from the IRS.
Known as the Information Returns Intake System, this free electronic filing service is “secure, accurate and requires no special software,” according to the agency. Although any business can use it, the IRS says it may be especially helpful to any small business that currently sends its 1099 forms on paper to the IRS.
Said IRS Acting Commissioner Doug O’Donnell, “This simplifies filing for those issuing 1099s and helps recipients receive information timely. The launch of IRIS can help reduce the millions of paper Forms 1099 we project will be filed in 2023 and demonstrates our commitment to finding useful and innovative ways of reducing paperwork on the business community and others issuing 1099s. This is part of the larger effort underway to make improvements and transform operations at the IRS.”
The IRS explains that filers can use the platform to create, upload, edit and view information and download completed copies of 1099 series forms for distribution and verification. It further notes that businesses can e-file both small and large volumes of 1099 series forms by either keying in the information or uploading a file with the use of a downloadable template.
The IRS encourages all businesses, especially those that now file on paper, to switch to e-filing through the platform and share in its benefits.
Among the benefits are the following:
- E-file security standards keep information safe and protected.
- The portal is an accurate filing method that automatically detects filing errors and provides alerts for missing information.
- Filers can submit automatic extensions and make corrections to information returns filed through the platform.
- The IRS acknowledges receipt of the return within as little as 48 hours.
- The platform keeps issuer information from year to year, and prior years filed through this platform, providing convenience to 1099 filers.
- E-filing eliminates trips to the post office and can reduce office expenses for paper, postage and storage space.
Go to the IRS site for more details.
How BlueStone Services Can Help
Don’t worry if the thought of tax season already has you sweating. Our expert accounting team can help lighten your load by gathering, organizing and verifying all the necessary financial data to make sure that everything is accurate when it comes time to file those 1099 forms! Let us handle this complicated task now so you don’t need to stress out later – take advantage right away and free up more time for what really matters in managing your business. You can contact us or go to the IRS site for more details.