Starting in 2024, the IRS rolled out expanded electronic filing (e-file) requirements that are now fully in effect for 2025. These changes have a significant impact on US small businesses—especially those filing various information returns. If your business submits 10 or more of these forms annually, you are now required to e-file. Understanding the IRS e-file mandate 2025, staying compliant with IRS rules, and working with expert accounting services in US can help you avoid costly penalties and streamline your filing process.
The biggest change is the drastic reduction in the e-file threshold. In the past, businesses only needed to e-file if they submitted 250 or more information returns. As of 2025, if you file just 10 or more information returns in a calendar year, you must file electronically.
You must now combine all return types to determine if you meet the 10-form threshold. For instance, if you submit 6 Forms 1099 and 4 Forms 1098, you’re already at 10—and required to e-file all of them.
The e-file mandate covers a wider variety of IRS forms, including:
Previously, corporations with less than $10 million in total assets were exempt. That exemption has been removed. Now, even smaller corporations must comply if they meet the 10-return threshold.
Businesses that continue filing paper returns when e-filing is required may be charged $250 per paper return filed above the threshold. These penalties can add up quickly, making compliance essential.
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You’re required to e-file in 2025 if:
To ensure you meet e-file requirements:
Partnering with accounting services that understand the updated IRS mandate can also help keep your business on track.
Many US small businesses that previously filed on paper are now required to transition to electronic filing. Here’s why that matters:
Working with professionals who stay ahead of tax law changes can make this transition much smoother and stress-free.
The IRS e-file mandate 2025 is a major shift that small business owners in the US cannot afford to ignore. If you file 10 or more information returns, you’re now required to file electronically. With expanded coverage, eliminated exemptions, and higher penalties, understanding and complying with these changes is critical. Leaning on reliable accounting services and automation tools will help ensure you stay compliant while maintaining accurate, efficient tax records.
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