The Taxpayer First Act was signed into law on July 1, 2019 and if instituted will impact your organization in tax years 2021 and 2022 if you have been filing any tax forms on printed paper to the recipients (employees or vendors).
In 2020, organizations filing 250 or more W-2’s must e-file.
Over the next two years, the threshold will be significantly reduced.
- For year 2021, organizations filing 100 or more W-2’s must file electronically.
- For year 2022, organizations filing 10 or more W’2’s, 1099’s, and/or ACA forms must file electronically. The count of 10 is combining the total number of forms, therefore is applicable to the majority of MIP users.
What does this mean for MIP users that use the Aatrix interface to file tax forms?
Your organization currently has the option to print or e-file forms. If you have been printing paper copies of 1099’s, for example, for year 2022, your organization will need to utilize the Complete Filing Service with Aatrix or another electronic option with the IRS, if applicable.
What planning steps should you take for year 2022?
If you will be using Aatrix to electronically file tax forms in 2022, visit their website www.aatrix.com to find the associated costs. Budget for this line item in 2022 and beyond.
Note that Aatrix does offer bundled deals for organizations that file multiple form types (1099’s, W-2, ACA).
Why were these changes proposed?
The Taxpayer First Act proposes wide-sweeping changes in an effort to modernize the IRS and improve the efficiency of the taxpayer experience when filing taxes. The electronic filing makes processing forms much easier for the IRS. If you have never filed your tax forms electronically, you will experience it as a much easier and efficient process than printing forms, manually stuffing envelopes, and mailing the forms.
For updates regarding the proposed e-filing changes that may impact your organization, visit the IRS website About General Instructions for Certain Information Returns | Internal Revenue Service (irs.gov)