New E-File Requirements Affect Affordable Care Act Reporting
The Department of the Treasury and the Internal Revenue Service that will affect how businesses submit their informational returns to the IRS. These regulations will require certain filers to e-file beginning in 2024.
The new rules, T.D. 9972, affect filers of partnership returns, corporate income tax returns, unrelated business income tax returns, withholding tax returns, certain information returns (including the 1094 and 1095 forms required under the Affordable Care Act), registration statements, disclosure statements, notifications, actuarial reports and certain excise tax returns.
Specifically, the final regulations:
- 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. The final regulations also create several new regulations to require e-filing of certain returns and other documents not previously required to be e-filed;
- 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. Earlier regulations applied the 250-return threshold separately to each type of information return covered by the regulations;
- eliminate the e-filing exception for income tax returns of corporations that report total assets under $10 million at the end of their taxable year, and
- require partnerships with more than 100 partners to e-file information returns, and they require partnerships required to file at least 10 returns of any type during the calendar year to e-file their partnership return.
With the threshold for the e-file requirement being lowered to 10 returns, most companies that are required to file 1094 and 1095 forms under the Affordable Care Act now must e-file them to the IRS beginning in 2024.
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