E-File Requirement for 10 or More Information Returns (IRS Rule 2025)

Authority: Internal Revenue Service (IRS), U.S. Department of the Treasury
Official source: https://www.irs.gov/filing/e-file-information-returns

Overview

Beginning January 1, 2024, the Internal Revenue Service (IRS) requires that any person or business filing 10 or more information returns in a calendar year must file them electronically (e-file). This rule replaces the previous 250-return paper threshold and now affects many small employers, payers, and accounting firms.

Legal background

The e-file mandate is based on final regulations issued as Treasury Decision (T.D.) 9972, published on February 23, 2023. The rule is also reflected in:

• IRS Topic No. 801 – Who Must File Information Returns Electronically
• General Instructions for Certain Information Returns (2025)

Both sources confirm that filers of 10 or more information returns of any type must file electronically.

Who must e-file

Any filer that has, in total, 10 or more information returns during the calendar year must submit them electronically through an IRS-approved system.

This applies to filers of, among others:

• Forms W-2 and W-2C
• Forms 1099 series (including 1099-NEC, 1099-MISC, 1099-INT, 1099-K, 1099-DIV, 1099-R and others)
• Forms 1098, 3921, 3922, 5498 series
• Form W-2G and Form 1042-S

If the filer reaches the 10-return threshold, paper filing is no longer allowed unless a waiver is granted.

Counting the 10-return threshold

The 10-return rule is aggregate. This means the filer must count all types of information returns together and not by form type.

Example: If a business files 6 Forms W-2 and 5 Forms 1099-NEC in the same calendar year, the total is 11 returns. Because 11 ≥ 10, the business must e-file all of them.

How to file electronically

The IRS offers several electronic systems for submitting information returns:

• IRIS – Information Returns Intake System (for Forms 1099): https://www.irs.gov/filing/iris
• FIRE – Filing Information Returns Electronically (legacy system): https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire
• AIR – Affordable Care Act Information Returns (for Forms 1094/1095)

To use these systems, filers generally need to obtain a Transmitter Control Code (TCC) from the IRS.

Exemptions and waivers

If e-filing is not possible due to hardship, technology, or other valid reasons, the filer may request a waiver.

Use Form 8508 – Request for Waiver from Filing Information Returns Electronically. The request should be filed at least 45 days before the due date of the returns.

Penalties for non-compliance

Filers that are required to e-file but submit paper forms instead may be subject to penalties. IRS explains these rules under Topic No. 803 – Electronic filing waivers and penalties.

Effective period

The 10-return e-file rule applies to information returns required to be filed on or after January 1, 2024, which covers tax year 2023 filings and later.

Official IRS sources

• IRS – E-file Information Returns
• IRS and Treasury issue final regulations on e-file for businesses (T.D. 9972)
• IRS Topic No. 801 – Who Must File Information Returns Electronically
• General Instructions for Certain Information Returns (2025)
• IRS Form 8508 – Request for Waiver from Filing Information Returns Electronically

Summary

The reduction of the e-file threshold from 250 to 10 returns brings many small and mid-sized businesses into the IRS electronic filing regime. Businesses, employers, and accounting firms should review how many information returns they file per year and, if they reach 10 or more, register and file through an IRS e-file system to avoid penalties.