Drenen Financial Services: Your Ally in Adapting to E-Filing Mandates
The Department of the Treasury and the Internal Revenue Service (IRS) issued final regulations that will transform the electronic filing (e-file) landscape. Starting in 2024, these changes will impact a broad spectrum of filers, including partnerships and corporate entities. At Drenen Financial Services, we will guide you through this transition to ensure compliance and efficiency.
Key Changes to Note
Lowered Threshold for E-Filing
Previously, filers needed to e-file if they had 250 or more returns. However, the requirement has now been substantially reduced. If you file 10 or more returns in a calendar year, you must e-file. This change brings more filers into the electronic realm, streamlining the process.
E-Filing: Aggregation of Returns
Almost all types of information returns now aggregate to determine if you meet the 10-return threshold. Unlike before, when the 250-return threshold was applied separately for each return type, this holistic approach simplifies the process.
No More Exceptions for Smaller Corporations
The exemption for income tax returns of corporations with assets under $10 million at the end of the tax year no longer applies. Thus, more corporations must e-file.
New Partnership E-Filing Requirements
Partnerships with over 100 partners now have to e-file information returns. Furthermore, partnerships that file 10 or more returns of any type during the calendar year must e-file their partnership return.
New IRS Portal: IRIS
To assist businesses, particularly small ones, the IRS launched a new, free online portal—the Information Returns Intake System (IRIS). This user-friendly service makes it easy and secure to e-file Form 1099 series information returns.
Drenen Financial Services: Your Partner in Compliance and Efficiency with E-Filing
Adapting to these new e-filing regulations can be challenging. Therefore, at Drenen Financial Services, our team brings the expertise and resources to help your business comply efficiently. By choosing us, you gain a partner who genuinely cares about your business’s success and smooth operation.
The Future of Filing: Embracing Digital Transformation
These changes underscore the IRS’s commitment to digital transformation. Since a significant majority of corporate and partnership tax returns already get e-filed, this move aims to reduce paper filing while enhancing operational efficiency and cutting associated costs.
Stay Ahead with Drenen Financial Services
Don’t let these changes catch you off guard. Reach out to Drenen Financial Services today at 413-569-0015 or email us at office@drenenfs.com. We will ensure your transition to the new e-filing system is seamless and trouble-free.
Hardship Waivers and Administrative Exemptions
Some may face challenges with these new e-filing requirements. However, the IRS offers hardship waivers and administrative exemptions. Drenen Financial Services evaluates your situation and guides you through the waiver application process.
Ready for the Change? Let Drenen Financial Services Lead the Way
Adapting to new regulations doesn’t have to be daunting. With Drenen Financial Services, you have a knowledgeable and experienced team ready to guide you every step of the way. Get in touch, and let’s ensure your business is set for success in this new digital era of tax filing.
