The IRS Advisory Council (IRSAC) regularly publishes recommendations to improve tax administration, and the latest updates carry real implications for employers, payers, platforms, and workers who issue or receive year-end information returns. If you handle W-2, 1099, or ACA reporting, these changes can affect how you file, when you file, and what happens if your data is incomplete or inaccurate.
In plain terms, the reporting landscape is moving toward more e-filing, tighter data accuracy, and faster preparation. For many businesses, even a small rule change can create a big shift in workflow, software needs, and potential penalties. Understanding these updates now can help you avoid a January scramble later.
Why these updates matter
For W-2 and 1099 filers, compliance is no longer just about getting forms out on time. It is also about choosing the right filing method, validating payee information early, and making sure your filing process can handle both federal and state requirements.
If you are still relying on paper filing or collecting missing tax information in January, these changes are especially important. The IRS and related agencies are clearly pushing filers toward digital systems and cleaner data.
Key changes at a glance
- E-file mandate: If you file 10 or more information returns in total for the year, you generally must file them electronically. This total is aggregated across return types, such as W-2, 1099-NEC, 1099-MISC, 1095, and others.
- More accessible e-filing: The IRS Information Returns Intake System (IRIS) offers a free way to e-file many 1099 forms. FIRE and commercial software remain options as well.
- 1099-K transition: The IRS has signaled a phased approach to the lower threshold. For 2024, a $5,000 threshold has been indicated as a transition step, with $600 expected later. Always check the latest IRS guidance for the year you are filing.
- Data quality focus: Expect more emphasis on accurate names and TINs, backup withholding when required, and faster corrections.
- Security and identity protection: Continued use of truncated TINs on recipient copies where allowed, along with strong authentication for e-file portals.
Who is affected?
These changes affect more than just large employers. A wide range of taxpayers and organizations may need to adjust their filing process.
- Small and mid-sized businesses issuing a mix of W-2 forms and 1099 forms
- Gig platforms and marketplaces that report payments
- Nonprofits and community organizations with paid workers or contractors
- Household employers, including those paying nannies or caregivers
- Accounting and payroll teams that support W-2 and 1099 filers
The 10-return e-file mandate explained
Final Treasury and IRS regulations now require e-filing when you file 10 or more information returns in a calendar year. The threshold is calculated by aggregating the original information returns you are required to file across categories, which means you count your W-2s, 1099s, and other covered forms together.
This is one of the most important changes for smaller businesses because you may hit the threshold sooner than expected. A filer with only a handful of employees and contractors can still cross the line.
Practical examples
- Example 1: You have 7 employees receiving W-2 forms and paid 3 contractors receiving 1099-NEC forms. Total originals = 10. Result: You must e-file W-2s with the SSA and 1099-NECs with the IRS.
- Example 2: You have 4 W-2s, 3 1099-NECs, 2 1099-MISCs, and 1 1095-C. Total = 10. Result: E-file is required across these forms.
- Corrections: Corrected returns generally do not count toward the 10-return threshold. However, if you were required to e-file the originals, you must also e-file the corrections.
Paper filing remains available for filers below the threshold or for those with approved waivers based on undue hardship. But if you fail to e-file when required, you may face penalties under IRC Sections 6721 and 6722.
If you need a practical filing path for contractor forms, see BoomTax’s guide to e-file Form 1099-NEC online. If you later need to fix submitted forms, review how to file Form 1099 corrections.
E-filing options: IRIS, FIRE, and SSA BSO
You now have multiple ways to e-file, depending on the form type and your filing volume. Choosing the right system can save time and reduce manual work.
- IRIS (Information Returns Intake System): A free IRS portal for preparing, uploading, and submitting many 1099 forms. It is useful for smaller filers who want a no-cost, browser-based solution. IRIS also supports forwarding to participating states through the Combined Federal/State Filing program for certain forms.
- FIRE (Filing Information Returns Electronically): A longstanding IRS system for bulk 1099 e-filing, commonly used through software or service providers. It is often the better fit for higher volumes or integrations.
- SSA BSO (Business Services Online): Use this portal to e-file W-2 and W-2c forms. It includes on-screen entry, uploads, and validation checks.
If you expect your filing volume to grow, choose tools that can handle multiple return types, TIN matching, and state reporting. That can reduce extra work later.
For official IRS background, review the General Instructions for Certain Information Returns and the IRS Form W-2 page.
1099-K threshold: phased transition
The IRS has announced a transition period as it moves toward the lower $600 threshold for Form 1099-K. For 2024, a $5,000 threshold has been indicated as an interim step, with the $600 threshold expected later.
Because this area is still evolving, always confirm the current-year threshold on IRS.gov before you file or advise payees. Platforms and payment processors should be especially careful here, since lower thresholds can significantly increase the number of reportable payees.
Actionable tip: Update onboarding, TIN collection, and communication templates now so you are ready for a larger reporting population as thresholds fall. You can also review the IRS guidance on understanding Form 1099-K.
Deadlines you should know
- W-2: Furnish to employees and file with the SSA by January 31.
- 1099-NEC: Furnish to recipients and file with the IRS by January 31, whether you file on paper or electronically.
- Most other 1099 forms (e-file): Generally due March 31 to the IRS. February deadlines may apply for paper filing or certain forms, so verify each form’s instructions.
Late filings can become expensive quickly. Penalties usually increase the later you file, and intentional disregard can push per-return penalties much higher.
Build your calendar backward from January 31 so you have enough time to validate data, resolve TIN issues, and prepare recipient copies. For a broader filing calendar, review BoomTax’s tax form deadlines guide.
Data accuracy and TIN best practices
- Collect Form W-9 or Form W-8 for foreign payees at onboarding, not in January.
- Use TIN matching tools to catch name and TIN mismatches early.
- Apply 24% backup withholding when required, such as when a payee does not furnish a TIN after solicitations. See IRS instructions for details.
- Use truncated TINs on recipient copies where permitted, but do not truncate on forms filed with the IRS or SSA.
- Keep documentation of solicitations and responses in case you need penalty relief.
These steps are not just best practices. They can help reduce rejected filings, backup withholding issues, and costly corrections after forms are submitted.
If you are still collecting taxpayer information manually, it helps to standardize your process with a W-9 form workflow before year-end.
Step-by-step compliance plan
60–90 days before deadlines
- Count your expected returns to determine whether the 10-return e-file mandate applies.
- Choose your e-file method: IRIS for free filing, FIRE through software, or a provider service. Also set up SSA BSO access for W-2s.
- Audit your vendor and payee database for names, addresses, TINs, and payment types.
30–60 days before deadlines
- Run TIN matching where available and solicit missing W-9 forms.
- Test data uploads to your chosen portals or software.
- Draft recipient communications explaining what to expect and when forms will be delivered.
0–30 days before deadlines
- Finalize amounts, box codes, and any states requiring separate filing.
- Furnish recipient statements by January 31, or as directed by the form instructions.
- E-file original returns, promptly correct any rejects, and issue corrections when needed.
Common questions
Do household employers need to e-file?
If your aggregate information returns reach 10 or more, the e-file requirement generally applies. Household employers should review totals across all information returns they file.
What if I can’t e-file?
You may request a waiver for undue hardship, such as when e-filing is not feasible. Plan early because waivers are not automatic, and timing matters.
Do states follow the same rules?
Not always. Some states require separate filings or have their own e-file mandates. If you use IRIS with participating states, federal-and-state forwarding may reduce extra steps.
How do penalties work?
Penalties vary based on how late you file and whether the IRS determines there was intentional disregard. Accurate, timely filing and keeping proof of your compliance efforts can help minimize risk. For more detail, see BoomTax’s guide to 1099 penalties.
Resources
- IRS Information Returns Intake System (IRIS)
- FIRE System overview
- SSA Business Services Online (W-2/W-2c)
- About Form 1099-K
- Form instructions and deadlines
Bottom line
The IRS Advisory Council’s recommendations and recent IRS actions point in a clear direction: more e-filing, better data, and earlier preparation. For W-2 and 1099 filers, the most important steps are to count your returns, choose an e-file path, clean your data, and lock in your calendar.
A few hours of preparation now can save weeks of stress in January. If you want a simpler way to handle year-end reporting, BoomTax can help you e-file 1099, W-2, and ACA forms accurately and on time.
This article is for general information only and is not tax or legal advice. Always consult official IRS guidance and a qualified advisor for your specific situation.
Updated for the latest available guidance at the time of publication. Check IRS.gov for current-year updates before filing.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.
About Author
