The E-Filing Mandate: Businesses Filing 10 or More Information Returns Must File Electronically
Part of our 2025 Tax Law Changes guide — the complete breakdown of the One Big Beautiful Bill Act.
A rule that used to apply mostly to large filers now reaches a huge number of small businesses: the electronic-filing threshold for information returns dropped dramatically. If a business files just 10 or more information returns in a year, paper is generally no longer an option.
What changed
Under IRS final regulations, the threshold for mandatory electronic filing of information returns fell from 250 to 10, effective for returns required to be filed on or after January 1, 2024. Crucially, the count is in the aggregate — you add up nearly all information-return types together (W-2s, the various 1099s, 1098s, and more), not 10 of any single form.
Why it catches people off guard
- A small business with, say, seven 1099-NECs and four W-2s already exceeds the threshold when combined.
- Paper filing when you were required to e-file can trigger failure-to-file-electronically penalties.
- Corrections to electronically filed returns generally must also be filed electronically.
What to do
- Total up all information returns across form types to test the threshold.
- Use the IRS IRIS (Information Returns Intake System) or approved software/providers to e-file.
- Register early — access to e-filing systems can take time to set up.
Stay current with CPE Options
Rules change every filing season. Keep your knowledge sharp — browse the catalog, get a full year with Unlimited Access, or see all CPE plans. Confirm your state’s rules on our CPE requirements page.
This article is general information for tax and accounting professionals and is not tax, legal, or accounting advice. Rules, rates, and thresholds change and have specific effective dates — confirm current requirements with the IRS, U.S. Customs and Border Protection, or qualified counsel before acting or advising clients.
