New IRS proposed rule would expand electronic filing

The Internal Revenue Service has published a proposed rule that would expand requirements for employers to file certain information returns electronically, including those furnished under the Affordable Care Act’s reporting requirements in Internal Revenue Code Section 6055 and Section 6056.

• For Form 1094 series, Forms 1095-B and 1095-C, Form 1099 series, and Form 5498 series, electronic filing would be required for entities that file 100 or more returns that have due dates in 2022, and 10 or more returns after that. The proposal would require aggregating most information returns when calculating those thresholds.

• Entities that file at least 10 returns of any type would be required to electronically file Form 5330 for tax years ending on or after the date final rules are published, and Form 8955-SSA for plan years beginning on or after Jan. 1, 2022.

• For entities required to file Form 5500, the proposed rule would require entities that file at least 10 returns of any type to file Form 5500 electronically, effective for plan years beginning after Dec. 31, 2021.

This proposal would basically eliminate paper filings for most employers. But keep in the mind, the proposed rule has not been finalized and is not in effect yet.