# Bulletin No. 2023–11

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/agency%3Airs%3A4aea817aad7ea940

## Record

- **Collection:** Agency decision
- **Document type:** Agency decision

## Text

HIGHLIGHTS
OF THIS ISSUE




Bulletin No. 2023–11
March 13, 2023

These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.

ADMINISTRATIVE
Notice 2023-21, page 563.

This notice under § 7508A of the Internal Revenue Code
postpones the beginning of the lookback periods under
§ 6511 for certain taxpayers to file a claim for refund. The
affected taxpayers are those that had tax returns due from
April 15, 2020, to July 15, 2020, or from April 15, 2021, to
May 17, 2021, and due to the COVID-19 pandemic, those
due dates were postponed by Notice 2020-23 or Notice
2021-21 to July 15, 2020 or May 17, 2021, respectively.
Those 2020 and 2021 notices did not postpone the beginning of the lookback periods under § 6511 for claiming
refunds related to those returns. This notice aligns the lookback periods with the postponed 2020 and 2021 tax return
filing due dates.

T.D. 9972, page 530.

The final regulations amend the rules for filing certain returns and statements electronically to reflect changes
made by the Taxpayer First Act of 2019 and to promote
electronic filing.

EMPLOYEE PLANS
Notice 2023-19, page 560.

This notice sets forth updates on the corporate bond
monthly yield curve, the corresponding spot segment rates
for February 2023 used under § 417(e)(3)(D), the 24-month
average segment rates applicable for February 2023, and
the 30-year Treasury rates, as reflected by the application
of § 430(h)(2)(C)(iv).

REG 122286-18, page 565.

These proposed regulations provide rules relating to the use
of forfeitures in qualified retirement plans, including a deadline for the use of forfeitures in defined contribution plans,

Finding Lists begin on page ii.

and clarify that forfeitures arising in any defined contribution
plan (including in a money purchase pension plan) may be
used for one or more of the following purposes, as specified
in the plan: (1) to pay plan administrative expenses, (2) to
reduce employer contributions under the plan, or (3) to increase benefits in other participants’ accounts in accordance
with plan terms. The proposed regulations would require that
plan administrators use or allocate forfeitures no later than
12 months after the close of the plan year in which the forfeitures are incurred. The proposed regulations also update
rules relating to the use of forfeitures in defined benefit plans
to reflect statutory changes enacted after the existing regulations were promulgated.

INCOME TAX
AOD 2023-2, page 529.
Issue 1:
Nonacquiescence to the court’s conclusion that the parties’
failure to report the transactions fully or consistently should
not be a major factor in a decision whether to allow a taxpayer to disavow the form of its transactions and also to
the standard the court applied to allow petitioner to disavow
its form in this case.
Issue 2:
Nonacquiescence to the court’s determination that the fair
market value of a “Deferred Payment Right” (as described
therein) for purposes of section 351(b)(1) is not equal to its
issue price.

T.D. 9973, page 557.

This document contains final regulations that treat members of a consolidated group as a single United States
shareholder in certain cases for purposes of section 951(a)
(2)(B) of the Internal Revenue Code.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

March 13, 2023 

Bulletin No. 2023–11

Actions Relating to Court
Decisions
It is the policy of the Internal Reve­
nue Service to announce at an early date
whether it will follow the holdings in cer­
tain cases. An Action on Decision is the
document making such an announcement.
An Action on Decision will be issued at
the discretion of the Service only on un­
appealed issues decided adverse to the
government. Generally, an Action on De­
cision is issued where its guidance would
be helpful to Service personnel working
with the same or similar issues. Unlike a
Treasury Regulation or a Revenue Ruling,
an Action on Decision is not an affirma­
tive statement of Service position. It is not
intended to serve as public guidance and
may not be cited as precedent.
Actions on Decisions shall be relied
upon within the Service only as conclu­
sions applying the law to the facts in the
particular case at the time the Action on
Decision was issued. Caution should be
exercised in extending the recommenda­

tion of the Action on Decision to similar
cases where the facts are different. More­
over, the recommendation in the Action
on Decision may be superseded by new
legislation, regulations, rulings, cases, or
Actions on Decisions.
Prior to 1991, the Service published
acquiescence or nonacquiescence only
in certain regular Tax Court opinions.
The Service has expanded its acqui­
escence program to include other civil
tax cases where guidance is determined
to be help­ful. Accordingly, the Service
now may acquiesce or nonacquiesce in
the holdings of memorandum Tax Court
opinions, as well as those of the Unit­
ed States District Courts, Claims Court,
and Circuit Courts of Appeal. Regard­
less of the court decid­ing the case, the
recommendation of any Action on De­
cision will be published in the Internal
Revenue Bulletin.
The recommendation in every Action
on Decision will be summarized as ac­
quiescence, acquiescence in result only,
or nonacquiescence. Both “acquies­
cence” and “acquiescence in result only”

mean that the Service accepts the holding
of the court in a case and that the Ser­
vice will follow it in disposing of cases
with the same controlling facts. How­
ever, “acqui­
escence” indicates neither
approval nor disapproval of the reasons
assigned by the court for its conclusions;
whereas, “acqui­escence in result only”
indicates disagree­ment or concern with
some or all of those reasons. “Nonacqui­
escence” signifies that, although no fur­
ther review was sought, the Service does
not agree with the hold­ing of the court
and, generally, will not follow the deci­
sion in disposing of cases involving other
taxpayers. In reference to an opinion of a
circuit court of appeals, a “nonacquies­
cence” indicates that the Ser­vice will not
follow the holding on a na­tionwide ba­
sis. However, the Service will recognize
the precedential impact of the opinion on
cases arising within the venue of the de­
ciding circuit.
The Commissioner DOES NOT AC­
QUIESCE in the following decision:
Complex Media, Inc. v. Commissioner, T.C. Memo. 2021-141

Issue 1:
Nonacquiescence to the court’s conclusion that the parties’ failure to report the transactions fully or consistently should not be a major factor in a decision whether to allow a taxpayer to
disavow the form of its transactions and also to the standard the court applied to allow petitioner to disavow its form in this case.

Issue 2:

Nonacquiescence to the court’s determination that the fair market value of a “Deferred Payment Right” (as described therein) for purposes of section 351(b)(1) is not equal to its issue price.
1


Bulletin No. 2023–11

529

March 13, 2023

Part I
T.D. 9972
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Parts 1, 53, 54,
and 301
Electronic-Filing
Requirements for Specified
Returns and Other
Documents
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulation.
SUMMARY: This document contains
final regulations amending the rules for
filing electronically and affects persons
required to file partnership returns, cor­
porate income tax returns, unrelated busi­
ness income tax returns, withholding tax
returns, certain information returns, regis­
tration statements, disclosure statements,
notifications, actuarial reports, and certain
excise tax returns. The final regulations
reflect changes made by the Taxpayer
First Act (TFA) and are consistent with
the TFA’s emphasis on increasing elec­
tronic filing.
DATES: Effective date: These regulations
are effective on February 23, 2023.
Applicability dates: For dates of applica­
bility, see §§1.1461-1(j), 1.1474-1(j), 1.60334(b), 1.6037-2(b), 1.6045-2(i), 1.6045-4(s),
1.6050I-1(h), 1.6050I-2(f), 1.6050M-1(f),
53.6011-1(e), 54.6011-3(f), 301.1474-1(e),
301.6011-2(g), 301.6011-3(f), 301.6011-5(f),
301.6011-10(c), 301.6011-11(e), 301.601112(f), 301.6011-13(f), 301.6011-14(f),
301.6011-15(f), 301.6012-2(f), 301.60334(d), 301.6037-2(f), 301.6057-3(f), 301.60582(f), 301.6059-2(e), and 301.6721-1(h).
FOR FURTHER INFORMATION
CONTACT: Casey R. Conrad of the Of­
fice of the Associate Chief Counsel (Pro­

March 13, 2023

cedure and Administration), (202) 3176844 (not a toll-free number). The phone
number above may also be reached by in­
dividuals who are deaf or hard of hearing
or who have speech disabilities through
the Federal Relay Service toll-free at
(800) 877-8339.
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to
the Regulations on Income Taxes (26 CFR
part 1) under sections 1461 and 1474 of
the Internal Revenue Code (Code), which
provide that persons required to deduct
and withhold tax are liable for such tax;
under sections 6045 and 6050M of the
Code, which require persons to file and
furnish certain information with respect to
transactions and contracts; and under sec­
tion 6050I of the Code, which requires per­
sons to report information about financial
transactions to the IRS; to the Regulations
on Pension Excise Taxes (26 CFR part 54)
under section 6011 of the Code, which
requires persons to report information for
certain excise taxes related to employee
benefit plans; to the Regulations on Foun­
dation and Similar Excise Taxes (26 CFR
part 53) under section 6011 of the Code to
remove the option—available to a person
required to report certain excise taxes on
Form 4720, Return of Certain Excise Taxes Under Chapters 41 and 42 of the Internal Revenue Code—to designate a Form
4720 filed by a private foundation or trust
as that person’s return if the foundation is
reporting the same transaction; and to the
Regulations on Procedure and Adminis­
tration (26 CFR part 301) under sections
1474, 6011, 6012, 6033, 6057, 6058, and
6059 of the Code for determining whether
returns must be filed using magnetic me­
dia (references to ‘‘electronic form’’ are
used in place of ‘‘magnetic media’’).
On July 1, 2019, the President signed
into law the TFA, Public Law 116-25,
133 Stat. 981 (2019). Section 2301 of the
TFA amended section 6011(e) by add­
ing new paragraph 5 that authorizes the
Secretary of the Treasury or her delegate
(Secretary) to prescribe regulations that

530

decrease, in accordance with the TFA,
the number of returns a taxpayer may file
without being required to file electroni­
cally. Section 3101 of the TFA amended
section 6011 to require any charitable or
other organization required to file an an­
nual return that relates to any tax imposed
by section 511 on unrelated business tax­
able income to file those returns in elec­
tronic form. Section 3101 of the TFA also
amended section 6033 to require any or­
ganization required to file a return under
section 6033 to file those returns in elec­
tronic form.
On July 23, 2021, the Department of
the Treasury (Treasury Department) and
the IRS published a notice of proposed
rulemaking (NPRM) (REG-102951-16)
in the Federal Register (86 FR 39910),
providing guidance on the electronic-fil­
ing rules for partnership returns, corporate
income tax returns, unrelated business
income tax returns, withholding tax re­
turns, certain information returns, regis­
tration statements, disclosure statements,
notifications, actuarial reports, and certain
excise tax returns. The 2021 proposed
regulations also withdrew the proposed
regulations published in the Federal
Register on May 31, 2018, amending the
rules for determining whether information
returns must be filed electronically. The
2018 and 2021 proposed regulations are
included in the rulemaking docket for this
Treasury Decision on www.regulations.
gov.
Summary of Comments and
Explanation of Revisions
The Treasury Department and the IRS
received 22 comments in response to the
proposed regulations. All comments were
considered and are available at www.regulations.gov or upon request. A public
hearing was held on September 22, 2021.
Three commenters testified at the public
hearing. The comments that are within the
scope of the regulations are summarized
and discussed in this preamble.
After consideration of the comments,
the Treasury Department and the IRS
adopt the proposed regulations as revised
by this Treasury Decision. To the extent

Bulletin No. 2023–11

not inconsistent with the Summary of
Comments and Explanation of Revisions
section of this preamble, the Explanation
of Provisions section of the preamble to
the proposed regulations is incorporated
in this document.
I. The Applicability Date of the Final
Regulations
A. Applicable for Returns Required to be
Filed in 2024
In general, the proposed regulations
provide that the amended electronic-fil­
ing rules would be applicable to returns
required to be filed during calendar years
beginning after the date of publication of
the Treasury Decision in the Federal Register. The proposed regulations provide
for other applicability dates depending
on the filing requirements for specific tax
forms. For example, the proposed regula­
tions provide that the changes to the elec­
tronic-filing rules would apply to returns
required to be filed under §301.6058-2 for
plan years that begin on or after January
1, 2022, but only for filings with a filing
deadline (not taking into account exten­
sions) after July 31, 2022.
The majority of commenters recom­
mended delaying the applicability of the
proposed changes by at least one calendar
year to provide time for their customers to
adjust inventories; for software companies
to adjust their programming; for paper
filers and the IRS to adjust their process­
es; and for the IRS to communicate the
changes to the public. One commenter, a
manufacturer and supplier of tax forms,
expressed concern that the timing of the
proposed changes would impose financial
burdens on their customers, buyers, and
resellers of tax forms, because planning
and purchasing inventory had already be­
gun when the proposed regulations were
published. That commenter also was con­
cerned that those filers needing a Trans­
mitter Control Code (TCC), required for
electronically filing most information
returns, would not be able to obtain one
for the 2022 filing season, because appli­
cations for a TCC were due by November
1, 2021. Another commenter, a seller of
paper forms, similarly noted that demand
for paper tax forms generally begins long
before the filing season starts, and that tax

Bulletin No. 2023–11

professionals and suppliers had already
begun ordering and shipping paper tax
forms for the 2022 filing season before
the proposed regulations were published.
The commenters also asserted that chang­
es in the electronic-filing rules made near
the start of filing season have a substantial
impact on tax-software companies that
must adjust their systems to comply with
the changes.
Other commenters supported the
IRS’s efforts to modernize the return-fil­
ing process to require withholding agents
to electronically file Form 1042, Annual Withholding Tax Return for U.S.
Source Income of Foreign Persons, and
shared the IRS’s desire to improve the
timeliness and accuracy of refunds and
credits claimed by foreign persons with
amounts withheld. But they suggested
that the IRS delay the applicability date
of the proposed changes by at least one
calendar year to provide time for the IRS
and withholding agents to prepare for the
electronic filing of Forms 1042. They
requested that the IRS provide electron­
ic-filing specifications for Forms 1042 as
soon as possible, and once provided, al­
low additional time to create and test the
required software.
The Treasury Department and the IRS
understand the concerns raised by com­
menters with respect to applicability dates
of the regulations contained in this Trea­
sury Decision. The Treasury Department
and the IRS believe that making the new
provisions for electronic filing applicable
to returns and other documents required
to be filed during calendar year 2024
will give affected persons ample time to
prepare. Accordingly, final regulations
§§1.1461-1(j), 1.1474-1(j), 1.6037-2(b),
1.6045-2(i), 1.6045-4(s), 1.6050I-1(h),
1.6050I-2(f), 1.6050M-1(f)(4), 54.60113(f), 301.1474-1(e), 301.6011-2(g)(1),
301.6011-3(f), 301.6011-5(f), 301.601111(e),
301.6011-12(f),
301.601113(f), 301.6011-14(f), 301.6011-15(f),
301.6012-2(f),
301.6037-2(f),
and
301.6721-1(h) provide that the new pro­
visions for electronic filing will apply
for returns and other documents required
to be filed during calendar year 2024.
Sections 301.6057-3(f), 301.6058-2(f),
301.6059-2(e) provide that the new pro­
visions for electronic filing will apply for
plan years that begin on or after January

531

1, 2024. To avoid partial retroactive effect
with respect to certain non-calendar-year
taxpayers, final regulations §§301.601112(f), 301.6011-13(f), and 301.6012-2(f)
specify that these provisions apply to
returns required to be filed for taxable
years ending on or after December 31,
2023. In light of the applicability dates,
the language “but only for filings with a
filing deadline (not taking into account
extensions) after July 31, 2022” that was
included in proposed §§301.6057-3(f),
301.6058-2(f), and 301.6059-2(e) has
been removed from the final regulations.
B. Applicability date for forms under
section 3101 of the TFA
Section 3101 of the TFA amended
section 6011 of the Code to require any
organization required to file an annual re­
turn that relates to any tax imposed by sec­
tion 511 on unrelated business taxable in­
come to file the return in electronic form.
Section 3101 of the TFA also amended
section 6033 to require any organization
required to file a return under section 6033
to file the return in electronic form. Unlike
section 2301 of the TFA, the provisions in
section 3101 of the TFA are self-executing
and generally apply to taxable years begin­
ning after July 1, 2019, in accordance with
section 3101(d) of the TFA. The applica­
bility date of final regulations §§1.60334(b), 53.6011-1(e), 301.6011-10(c), and
301.6033-4(d) (returns required to be filed
during calendar years beginning after the
date of publication of the Treasury Deci­
sion in the Federal Register) does not af­
fect the requirements under section 3101
of the TFA.
II. The Electronic-Filing Rules for
Information Returns
A. The electronic-filing threshold
Proposed §301.6011-2(b) and (c) pro­
vide that if a person is required to file,
during calendar year 2022, a total of at
least 100 information returns covered by
§301.6011-2(b)(1) and (2), and during
calendar years 2023 and after, a total of
at least 10 such returns, the person is re­
quired to file those information returns
electronically (electronic-filing threshold
for information returns). Because these

March 13, 2023

final regulations are not applicable until
calendar year 2024, the proposed elec­
tronic-filing thresholds of 100 for returns
required to be filed in calendar year 2022,
and 10 returns for returns required to be
filed in calendar year 2023 are not adopt­
ed. The electronic-filing threshold for re­
turns required to be filed in calendar years
2022 and 2023 remains at 250. The final
regulations adopt, however, the proposed
electronic-filing threshold of 10 for re­
turns required to be filed on or after Jan­
uary 1, 2024, as authorized by Congress’s
enactment of section 2301 of the TFA.
Two commenters disagreed with the
proposed reduction to 10 returns for small
businesses. Both questioned the need for
an electronic-filing rule at all and suggest­
ed that businesses should be afforded flex­
ibility in how they file their returns, rather
than be required to file returns electroni­
cally when they have filed paper returns
for years. The first commenter supported
the proposed reduction of the electron­
ic-filing threshold for information returns
from 250 to 100 returns but disagreed
with the proposed reduction to 10 returns
because it was “unnecessary and lacks
empathy for the challenges facing small
businesses.” The second believed that any
reduction to the electronic-filing threshold
should be a small, gradual reduction and
added that some small businesses have lit­
tle to no understanding of the Internet and
requiring these filers to electronically file
their returns would be challenging.
The Treasury Department and the IRS
disagree with the commenters’ suggestions
because electronic filing has become more
common, accessible, and economical, as
evidenced by the prevalence of tax-return
preparers and third-party service provid­
ers who offer return-preparation and elec­
tronic-filing services; by the availability
of tax-return-preparation software; and
by the numbers of returns already being
filed electronically on a voluntary basis.
Although the Treasury Department and
the IRS understand that these changes to
the electronic-filing requirements may
constitute a burden in the short term for
some filers, the final regulations do not
adopt these comments. To address any
undue hardship that these changes to the
electronic-filing rules may have on certain
small businesses that are paper informa­
tion-return filers, the IRS will continue to

March 13, 2023

grant hardship waivers fairly and consis­
tently and to grant reasonable-cause relief
from penalties for failure to file returns
electronically in appropriate cases. Ad­
ditionally, the Treasury Department and
the IRS expect the administrative costs
to electronically file returns to be further
reduced for taxable year 2022 and later
years with the launch of the Information
Returns Intake System (IRIS) Taxpayer
Portal, an internet platform for Form 1099
filings.
B. Filing corrected information returns in
same manner as originals
Proposed §301.6011-2(c)(4)(ii) pro­
vides a rule for the manner of filing cor­
rected returns. Proposed §301.6011-2(c)
(4)(ii)(A) provides that if a person is re­
quired to file original information returns
electronically, that person must file any
corresponding corrected information re­
turns electronically. Proposed §301.60112(c)(4)(ii)(B) provides that, if a person is
permitted to file information returns on
paper and does file those information re­
turns on paper, that person must also file
any corresponding corrected information
returns on paper.
One commenter generally supported
the corrected-return rule, but expressed
concern that the rule could occasionally
be an inconvenience to some people or
that an intervening event could occur that
would require filers to change their meth­
od of filing. Two other commenters noted
that the corrected-return rule would add an
additional burden on filers because many
software options provide electronic filing
of original returns but not corrected ones.
One of these commenters recommend­
ed that the Treasury Department and the
IRS delay requiring filers to correct their
electronically-filed returns electronically
until the IRS has a platform in place (for
example, the internet platform for Form
1099 filings required by section 2102 of
the TFA) that will accept corrected infor­
mation returns online. Another comment­
er opined that the IRS should not require
corrected returns to be filed in a particular
manner, but should instead “encourage the
most efficient way to serve the majority
better.”
The final regulations do not adopt
these comments. The Treasury Depart­

532

ment and the IRS have determined that,
because of the disparate procedures for
processing paper and electronic infor­
mation returns, the corrected-return rule
will increase the IRS’s timeliness and ac­
curacy in processing information returns,
which will improve tax administration
with respect to corrected returns. The
Treasury Department and the IRS expect
that the number of software options pro­
viding electronic filing for corrected re­
turns will increase to meet that expected
increase in demand. The IRS will work
with the tax-software community to en­
courage them to develop software op­
tions for corrections. If an intervening
event or the cost to purchase electron­
ic-filing software for corrected informa­
tion returns would cause a filer undue
hardship, the filer may request a waiver
from the electronic-filing requirement
for the corrected information returns. As
discussed in this preamble, the changes
to the information return electronic-filing
rules, including the corrected-return rule,
in this Treasury Decision will apply for
returns required to be filed after Decem­
ber 31, 2023, which is after the launch of
the Form 1099 filing platform. See sec­
tion I.A. Applicable for Returns Required
to be Filed in 2024.
C. TCC issues for non-United States
(U.S.) filers
The proposed regulations would in­
crease the number of non-U.S. filers
required to electronically file their in­
formation returns. On July 26, 2021, the
IRS announced changes to the proce­
dures for filers to authenticate their iden­
tities to create an account to apply for a
TCC, which is required to electronically
file most information returns. See FIRE
System Update: Improving the Process
and Security for Information Return (IR)
Application for Transmitter Control Code
(TCC), IRS (Oct. 1, 2021), https://www.
irs.gov/tax-professionals/fire-system-update-improving-the-process-and-security-for-information-return-ir-application-for-transmitter-control-code-tcc (last
visited January 13, 2023).
Several commenters expressed con­
cern with the changes to the authentica­
tion identity-proofing procedures. One
commenter mentioned that a significant

Bulletin No. 2023–11

number of qualified intermediaries and
foreign filers would not be able to elec­
tronically file information returns, such
as Forms 1042-S, Foreign Person’s U.S.
Source Income Subject to Withholding,
and 1099, because the new authentication
procedures require users to have U.S.based information, such as a U.S. Tax­
payer Identification Number, U.S. tele­
phone number, or U.S. financial account,
to authenticate their identity before ob­
taining a TCC. Two other commenters
expressed similar concerns with respect
to all non-U.S. filers, specifically noting
that due to client confidentiality and re­
lated issues, it is not feasible to require
non-U.S. filers to engage third parties to
file returns on their behalf. Two of the
commenters recommended the IRS ex­
clude qualified intermediaries and other
non-U.S. filers from the secure authen­
tication identity-proofing procedures to
ensure they can continue to submit their
information returns electronically. The
other commenters recommended that the
IRS, without compromising the security
objectives, make accommodations for
foreign filers so they can continue to file
their information returns electronically.
The Treasury Department and the IRS
are aware of this authentication issue for
non-U.S. filers, but the final regulations
do not adopt the suggestion to provide a
blanket electronic-filing exemption for
non-U.S. filers. The IRS’s preferred ap­
proach, in light of the TFA’s emphasis to
increase electronic filing, is to develop
alternative authentication requirements
for identity proofing in accordance with
standards set forth by the U.S. Department
of Commerce, National Institute of Stan­
dards and Technology (NIST). The IRS is
thus actively working to develop updated
authentication procedures for non-U.S. fil­
ers that comply with the NIST standards
and will inform the public in subsequent
guidance or public pronouncement when
these procedures become available.
D. Form 1042-S issues
Proposed §301.6011-2(b)(1) includes
Form 1042-S in the list of information
returns covered by the electronic-fil­
ing rules set forth in that regulation.
Form 1042-S has been included in the
regulation since 1986. The proposed reg­

Bulletin No. 2023–11

ulation, however, counts all the informa­
tion returns in the aggregate to determine
if the filer must electronically file. In ad­
dition, the proposed regulation decreases
the number of information returns that
can be filed on paper from 250 to 10, for
returns required to be filed in calendar
year 2023 and after. Two commenters
requested that the Treasury Department
and the IRS remove Form 1042-S en­
tirely from the list of returns included in
the proposed regulations because of the
changes to Form 1042-S since 2013. For
example, the 2013 Form 1042-S code
for “other income” was income code
50, but the “other income” code was lat­
er changed to income code 23. The two
commenters opined that changes to these
codes could confuse filers and recipi­
ents of the form, and that updating the
software to address these changes could
present challenges to software providers.
One of the commenters stated that the
proposed regulations would dispropor­
tionately affect occasional and low-vol­
ume filers of the Form 1042-S who may
not have sufficient resources to com­
ply with the proposed regulations. Both
commenters opined that, if Form 1042-S
is removed from the aggregation rule, the
IRS would not need as many resources to
deal with improper filing errors and re­
quests for a waiver from electronic filing
for Forms 1042-S.
The final regulations do not adopt
these comments. Although Form 1042S underwent several changes for taxable
year 2014 to accommodate reporting of
payments and amounts withheld under
the provisions of the Foreign Account
Tax Compliance Act, the form has not un­
dergone a large number of changes since
then. For example, the 2022 Form 1042S added to the form four new codes, but
each was assigned a completely new num­
ber that was not previously listed on the
2021 Form 1042-S. Absent extraordinary
circumstances, such as relevant statutory
changes, no substantial changes to the in­
come codes on Form 1042-S are expected
at this time. To the extent, however, that
taxpayers receiving Forms 1042-S have
questions about how to report the infor­
mation, the IRS updates the Instructions
for Form 1042-S and the instructions for
income tax returns each year so that tax­
payers will have the most up-to-date in­

533

formation. Finally, the Treasury Depart­
ment and the IRS have determined that the
benefits to be gained in the form of faster
and more accurate return processing out­
weigh any concerns about IRS resources
needed in processing electronic-filing
waiver requests.
III. Waiver and Exemptions
As described in the preamble to the
proposed regulations, many of the regu­
lations imposing electronic-filing require­
ments also provide a waiver from elec­
tronic filing to any person who establishes
undue hardship. The Treasury Department
and the IRS specifically requested com­
ments on how the hardship-waiver proce­
dures should be administered, including
suggestions for revising the procedures
for requesting, and criteria for granting,
a hardship waiver, and received several
comments in response.
A. Cost concerns
One commenter generally supported
the proposed rules, noting that electronic
filing not only significantly reduces paper
waste but also is faster and more reliable
than paper filings, which can get lost in the
mail. Another commenter agreed that all
persons should “get on board with the dig­
ital age of tax record keeping and filing,”
but commented that new small businesses
with little resources and businesses that
have paper filed for years may not want to
file electronically or may not know how.
Both commenters expressed concern over
the cost of electronic filing, suggesting
that the IRS waive all or part of the cost
for low-income taxpayers and others ex­
periencing financial hardship.
The final regulations do not adopt these
comments. The preamble to the proposed
regulations describes the recent reduction
in costs to electronically file and the sig­
nificant benefits of moving to electronic
filing. To address any undue hardship on
certain small businesses arising from these
changes to the electronic-filing rules, the
Treasury Department and the IRS will
continue to administer the hardship-waiv­
er program fairly and consistently and to
grant reasonable-cause relief from penal­
ties for failure to file returns electronically
in appropriate cases.

March 13, 2023

B. General waiver and exemption
procedures
Three commenters expressed concern
that, unless the IRS provides adminis­
trative exemptions or hardship waivers,
the proposed regulations under sec­
tion 6011(e) would impose burdens upon
discrete populations including, for exam­
ple, members of certain religious commu­
nities; remote populations; and elderly in­
dividuals without adequate technological
literacy.
With respect to religious communi­
ties, the commenters noted that members
of certain religious communities, in ac­
cordance with their religious practices,
generally do not use technology and have
tenets and teachings that prohibit commu­
nity members from having internet access
or the technology required to electronical­
ly file tax returns. The commenters thus
expressed concern that the reduction of
the electronic-filing threshold to 10 re­
turns with respect to information returns,
partnership returns, corporate income tax
returns, and electing small business in­
come tax returns would now require many
small business owners who are members
of these religious communities to file
these returns electronically, in violation of
their religious practices. The commenters
recommended two alternative changes to
the waiver procedures: that the Treasury
Department and the IRS expand the cur­
rent waiver request form, Form 8508, Request for Waiver From Filing Information
Returns Electronically, to include either
a one-time or an annual application for
exemption from electronic-filing require­
ments, based on religious beliefs, for any
form the filer is required to file electroni­
cally; or that a new form be created, sim­
ilar to Form 8948, Preparer Explanation
for Not Filing Electronically, that could
be attached to the paper-filed return to
explain that the filer was filing on paper
because of religious beliefs.
The Treasury Department and the IRS
agree that filers for whom using the tech­
nology required to file in electronic form
conflicts with their religious beliefs should
be granted administrative exemptions
from the electronic-filing requirements
for information returns under §301.60112; partnership returns under §301.60113; corporate income tax returns under

March 13, 2023

§301.6011-5; electing small business
income tax returns under §301.6037-2;
and other returns and statements that the
IRS determines appropriate. To that end,
final regulations §§301.6011-2(c)(6)(ii);
301.6011-3(b)(2); 301.6011-5(b)(2); and
301.6037-2(b)(2) provide that an exemp­
tion will be allowed for filers for whom us­
ing the technology required to file in elec­
tronic form conflicts with their religious
beliefs. Additionally, except as described
in section III.C. of this preamble, the final
regulations authorize the Commissioner
to provide exemptions from the electron­
ic-filing requirements to promote effective
and efficient tax administration. Finally,
these final regulations clarify that a sub­
mission claiming an exemption should be
made in accordance with applicable IRS
revenue procedures, publications, forms,
instructions, or other guidance, including
posting to the IRS.gov website. In gen­
eral, exemptions will be made available
on a form-by-form basis rather than on a
per-filer basis to allow the IRS to appro­
priately address differences in filing re­
quirements and filer populations.
With respect to remote populations,
one of the commenters expressed concern
that many Native tribes, such as Native
Alaskan tribes, lack access to Internet and
computers and that the reduction of the
electronic-filing threshold for informa­
tion returns would impact some of these
Native Alaskans, for example, a com­
mercial fishing captain. This commenter
also stated that a disproportionate number
of Americans in business age 65 or old­
er may lack the ability or accessibility
to electronically file tax returns and that
the cost for these older taxpayers to pay
a third party to electronically file could
force them out of business. The comment­
er asked whether factors other than finan­
cial cost, such as a filer’s lack of access to
digital technology or a filer’s age, are fac­
tored into the IRS’s decision on whether
to grant a waiver request. The commenter
further expressed concern that granting a
hardship waiver is discretionary and that
the procedures do not include an objective
threshold or standard on how much the
cost to electronically file must exceed the
cost to paper file for the IRS to grant an
electronic-filing waiver. The commenter
thus recommended that the Treasury De­
partment and the IRS expand or clarify

534

that the hardship-waiver procedures to in­
clude Native tribes and other persons with
difficulty accessing or using technology.
The Treasury Department and the IRS
expect rural filers without access to inter­
net and older filers that lack digital literacy
to make good faith efforts to comply with
the electronic-filing requirements of these
regulations, which may require obtaining
additional assistance to electronically file.
To the extent the burden of obtaining the
necessary assistance to file returns would
cause undue hardship, the filers may sub­
mit a hardship-waiver request from the
electronic-filing requirements.
Under section 6011(e)(2)(B) of the
Code, the IRS must consider (among oth­
er relevant factors) the taxpayer’s ability
to comply at a reasonable cost with the
requirements of such regulations. To de­
termine whether a taxpayer can comply
with the electronic-filing requirements
at a reasonable cost, the IRS requires the
taxpayer to provide two estimates of the
cost that the taxpayer would incur to con­
vert to electronic filing. Financial cost,
however, is not the only factor that the
IRS may consider. Under current proce­
dures, for example, the IRS will consider
granting a waiver from the electronic-fil­
ing requirements for information returns
covered under §301.6011-2(b) if a fire,
casualty, or natural disaster affected the
operation of the business. The proposed
hardship-waiver language, for example in
proposed §301.6011-2(c)(6)(i), provides
that “[t]he principal factor in determin­
ing hardship will be the amount, if any,
by which the cost of filing the return elec­
tronically in accordance with this section
exceeds the cost of filing the return on
paper.” Because the IRS takes other fac­
tors into consideration when analyzing a
request for a waiver from electronic-fil­
ing requirements, the final regulations are
modified to read, “One principal factor in
determining hardship will be the amount,
if any, by which the cost of filing the re­
turn electronically in accordance with this
section exceeds the cost of filing the re­
turn on paper.” The Treasury Department
and the IRS anticipate that additional
details on the specific hardship-waiv­
er procedures for each form affected by
this Treasury Decision will be included
in future public releases of IRS forms
and instructions. After considering pub­

Bulletin No. 2023–11

lic comments, the IRS revised the Form
8508 in January 2023 to clarify the cir­
cumstances the IRS may accept to justi­
fy a waiver from the e-filing requirement
for the information returns listed on the
Form, including hardships other than fi­
nancial hardship. The Treasury Depart­
ment and the IRS have thus determined
that the IRS’s current hardship-waiver
procedures provide appropriate relief to
rural and older taxpayers from any undue
burdens arising from these changes to the
electronic-filing rules. Reasonable cause
relief from penalties may also be avail­
able for these filers.
The final regulations also clarify that,
if the IRS’s systems do not support elec­
tronic filing for a specific return required
to be filed electronically with the IRS, a
taxpayer will not be required to file the
return electronically. Several of the final
regulations require the electronic filing of
returns that were previously filed on paper
only. If the IRS’s systems do not have the
capacity to accept a particular type of re­
turn electronically when the electronic-fil­
ing requirements become applicable, this
provision clarifies that a taxpayer will not
be required to file that type of return elec­
tronically. In such situations, a taxpayer
will not be required to submit a request
for a hardship waiver to file that type of
return on paper.
Finally, one of the commenters ex­
pressed concern with the statement in the
proposed regulations that “a request for a
hardship waiver must be made in accor­
dance with postings, guidance, forms or
instructions, including those on the IRS.
gov website” because these discrete pop­
ulations, without access to the website,
might not have the latest guidance post­
ed to the website, and so might be filing a
hardship-waiver request based on outdat­
ed guidance from paper forms and instruc­
tions. The commenter thus recommended
that the IRS be lenient in imposing penal­
ties on taxpayers of faiths who avoid tech­
nology, filers that lack access to technolo­
gy, and older Americans who in good faith
request a hardship waiver in compliance
with outdated guidance.
The Treasury Department and the IRS
have determined that to the extent that a
taxpayer can show reasonable cause for
failure to file electronically, including val­
id impediments to making a proper waiver

Bulletin No. 2023–11

request, the penalty for failure to file will
not apply.
C. Exceptions to general waiver and
exemption procedures
The final regulations do not provide
for waivers and exemptions in all circum­
stances or for all tax forms required to be
electronically filed.
1. Returns required under section 3101 of
the TFA
Section 3101 of the TFA sets forth two
requirements for mandatory electronic
filing by tax-exempt organizations: under
new section 6011(h), organizations with
returns relating to any tax imposed under
section 511 on unrelated business taxable
income “shall file such return in electron­
ic form,” and under new section 6033(n),
organizations with returns required to be
filed under section 6033 “shall file such
return in electronic form.” Thus, the TFA
amendments expand the class of forms
that tax-exempt entities are currently re­
quired to file electronically, such as the
Form 990-N, Electronic Notice (e-Postcard), and Form 8871, Political Organization Notice of Section 527 Status.
Section 3101 of the TFA states that
organizations required to file a return un­
der sections 6011(h) or 6033(n) “shall”
file such return in electronic form and
does not provide for any waiver or alter­
native method to meet the electronic-fil­
ing requirements. The legislative history
to section 3101 of the TFA explains that
mandatory electronic filing by all tax-ex­
empt organizations required to file returns
will improve efficiency, reduce costs, and
generally improve oversight of tax-ex­
empt organizations. H. Rep. No. 116-39,
at 97-98 (2019). Section 3101 of the TFA
also amended section 6104(b) to provide
that “[a]ny annual return required to be
filed electronically under section 6033(n)
shall be made available by the Secretary
to the public as soon as practicable in a
machine-readable format.” The legislative
history explains that it is important to in­
crease the transparency of, and enhance
public access to, information about tax-ex­
empt organizations, particularly charitable
organizations. Id. The legislative history
further explains that this will expedite the

535

publication of the information required to
be disclosed by the IRS and will enhance
its usability by stakeholders attempting
to exercise oversight of tax-exempt orga­
nizations. Id. Such stakeholders include
not only members of the public who may
support or donate to an organization, but
also state and local officials charged with
oversight responsibilities and responsibil­
ity for prosecuting fraudulent charities.
In contrast to forms affected by section
2301 of the TFA, there is no requirement
that an alternate paper filing process be
provided for certain filers of forms af­
fected by section 3101 of the TFA (such
as for filers filing fewer than 10 returns).
Further, in contrast to forms affected by
section 2301 of the TFA, information re­
turns affected by section 3101 of the TFA
are required to be released to the public
in machine-readable format under section
6104(b), a process that would be ham­
pered if the IRS were required to accept
paper returns and frustrate the intent of
Congress to expedite the publication of
those returns. Proposed §§301.6011-10
and 301.6033-4, consistent with the statu­
tory mandate to require all forms affected
by section 3101 of the TFA to be electron­
ically filed, did not provide for any waiv­
er or exemption from the electronic filing
requirements.
While public comments generally re­
questing waivers or exemptions from
the electronic filing requirements under
certain circumstances were received,
§§301.6011-10 and 301.6033-4 are final­
ized without waiver or exemption provi­
sions because providing a waiver or ex­
emption provision would be contrary to
the plain language of section 3101 of the
TFA and inconsistent with the legislative
history to that section. Notwithstanding
that, the Religious Freedom Restoration
Act of 1993, Public Law 103-141 (107
Stat. 1488), may provide an exemption
for any filer for whom using the technolo­
gy required to file electronically conflicts
with their religious beliefs.
2. Qualified plan returns filed through
EFAST2
On July 21, 2006, the Department of
Labor (DOL) published a final rule in the
Federal Register (71 FR 41359), requir­
ing electronic filing of the Form 5500,

March 13, 2023

Annual Return/Report of Employee Benefit Plan, and Form 5500-SF, Short Form
Annual Return/Report of Small Employee
Benefit Plan, for plans covered by Title I
of the Employee Retirement Income Se­
curity Act, Public Law 93-406 (88 Stat.
854), as amended (ERISA) for plan years
beginning on or after January 1, 2008. On
November 16, 2007, the DOL published
a final rule in the Federal Register (72
FR 64710), postponing the effective date
of the electronic filing mandate so that the
mandate applies to plan years beginning
on or after January 1, 2009. See 29 CFR
§2520.104a-2.
Filers of the Form 5500 and Form
5500-SF are required to file electronical­
ly through DOL’s computerized ERISA
Filing Acceptance System (EFAST2).
Rev. Proc. 2015-47, 2015-39 IRB 419,
sets forth procedures to request a waiver
of the electronic-filing requirement due to
economic hardship for plan administrators
of retirement plans (or, in certain situa­
tions, employers maintaining retirement
plans) that are required to file electronical­
ly certain employee benefit plan returns.
Section 3 of Rev. Proc. 2015-47 provides
that, because filers of Form 5500 and
Form 5500-SF are required to file those
returns electronically through DOL’s
EFAST2, a waiver of the electronic-fil­
ing requirement for those forms will not
be granted. Because an actuarial report
required under section 6059 is filed with
Form 5500 or Form 5500-SF as a schedule
and is also required to be filed electron­
ically through DOL’s EFAST2, a waiver
of the electronic-filing requirement for the
actuarial report also will not be granted.
Sections 301.6058-2 and 301.6059-2 of
the final regulations continue to provide
that the Commissioner may waive the
electronic-filing requirements under sec­
tions 6058 and 6059 in cases of undue
economic hardship, and that a request
for a waiver must be made in accordance
with applicable IRS revenue procedures,
publications, forms, instructions, or other
guidance, including postings to the IRS.
gov website. However, pursuant to section
3 of Rev. Proc. 2015-47, waivers of the
electronic-filing requirement for Forms
5500 and 5500-SF (and related actuarial
reports) will continue to not be granted.
In addition, §§301.6058-2 and 301.60592 of the final regulations do not provide

March 13, 2023

for any exemptions to the electronic-filing
requirement for Forms 5500 and 5500-SF
(and related actuarial reports) because,
unlike other filings described in this Trea­
sury Decision, Forms 5500 and 5500-SF
(and related actuarial reports) are required
to be filed electronically through DOL’s
EFAST2.
3. Form 8300
If filed electronically, Forms 8300,
Report of Cash Payments Over $10,000
Received in a Trade or Business, are not
filed electronically with the IRS; rather
they are filed electronically through the
Financial Crimes Enforcement Network’s
(FinCEN) BSA E-Filing System. The
Treasury Department, FinCEN, and the
IRS have determined that most Form 8300
filers who might have difficulty filing
electronically and might therefore need
a waiver, would likely not be required to
file electronically in the first place because
they would not meet the electronic-filing
threshold in §301.6011-2(c), even after
that threshold is reduced to 10 returns. See
section II.A. Accordingly, the Treasury
Department, FinCEN, and the IRS have
determined that there is no need for a sep­
arate waiver process for Form 8300 filers.
Instead, Form 8300 filers who request and
receive a waiver under §301.6011-2(c)
for any return required to be filed under
§301.6011-2(b)(1) or (2) will automati­
cally be deemed to have received an elec­
tronic-filing waiver for any Forms 8300
the filer is required to file for the duration
of the calendar year.
IV. Form 1042 Substantiation
Requirements to Claim Credit on Line 67
Proposed
§§301.1474-1(a)
and
301.6011-15(a) would require certain
filers to electronically file Forms 1042.
Forms 1042 have previously been filed
only on paper. For Form 1042 filers that
claim a credit on line 67 for taxes with­
held by other withholding agents, the fil­
ers substantiate this credit by attaching, to
the Form 1042, paper copies of the Forms
1042-S they received from those other
withholding agents.
In light of the electronic-filing require­
ments for Form 1042, two commenters
requested the IRS remove the requirement

536

to provide paper copies of Forms 1042-S
to support the claim made on line 67 of
the Form 1042, suggesting that the IRS
would already have electronic copies of
the Forms 1042-S filed by the other with­
holding agents, making the requirement
duplicative.
The final regulations do not adopt these
comments as they are outside the scope of
these regulations, which do not impose
the requirement to provide paper copies.
Nonetheless, the IRS is actively working
to develop programming that would allow
filers to electronically attach or submit
Forms 1042-S with their Forms 1042 to
substantiate their claimed credit on Line
67. The IRS expects to have programming
in place consistent with the applicability
dates in these final regulations.
V. Regulatory Flexibility Act Certification
One commenter expressed concern
that, although the proposed regulations
certify that they will not have a significant
economic impact on a substantial number
of small entities for purposes of the Regu­
latory Flexibility Act, the regulations will
in fact have a “significant economic im­
pact” on small entities.
The Treasury Department and the IRS
maintain their certification that the final
rules will not have a significant economic
impact on a substantial number of small
entities for the reasons discussed in sub­
section II, Regulatory Flexibility Act, of
the following Special Analyses section of
this preamble.
VI. Clarification on a Failure to File
Electronically When Required
The proposed regulations provide that
if a filer fails to file a return or report elec­
tronically when required to do so by the
regulations, the filer is “deemed” to have
failed to file the return or report. The word
“deemed” is superfluous because a tax­
payer who fails to file electronically when
required to do so by these regulations has
failed to file. Therefore, for sake of clar­
ification, the Treasury Department and
the IRS have made minor edits to remove
the word deemed from final regulations
§§54.6011-3(c), 301.1474-1(c), 301.601110(b),
301.6011-12(c),
301.601113(c), 301.6011-14(c), 301.6011-15(c),

Bulletin No. 2023–11

301.6012-2(c),
301.6033-4(b),
301.6721-1(a)(2)(ii).

and

VII. Clarification on 10-Return
Calculation for Material Advisor
Disclosure Statements
Under section 6111 and §301.6111-3(a)
and (e), each material advisor is required
to file a Form 8918, Material Advisor Disclosure Statement, with respect to any re­
portable transaction by the last day of the
month that follows the end of the calendar
quarter in which the advisor became a ma­
terial advisor with respect to the reportable
transaction or in which the circumstances
necessitating an amended disclosure state­
ment occur. Thus, a material advisor may
not know the number of Forms 8918 it will
be required to file during a calendar year
until after the end of the third quarter of
the calendar year. On the other hand, oth­
er returns—for example, Forms 1099, in­
come tax returns, employment tax returns,
and excise tax returns–have fixed due dates
by which those returns must be filed each
calendar year. A filer of those returns will
therefore know at the beginning of the
calendar year whether the filer is required
to file at least 10 returns of those types.
Thus, the Treasury Department and the
IRS clarify in these final regulations that
a material advisor will be required to file
its Forms 8918 electronically or in other
machine-readable form in accordance with
revenue procedures, publications, forms,
instructions, or other guidance, including
postings on the IRS.gov website, during the
calendar year only if the material advisor
is required to file at least 10 returns of any
type, other than Forms 8918. This clarifica­
tion will help ensure material advisors un­
derstand early in the calendar year whether
any Forms 8918 must be filed electronical­
ly or in other machine-readable form with­
out complications of being unable to deter­
mine at the beginning of a calendar year the
number of Forms 8918 that may need to be
filed during the calendar year.
Special Analyses
I. Regulatory Planning and Review –
Economic Analysis
Executive Orders 12866 and 13563 di­
rect agencies to assess costs and benefits

Bulletin No. 2023–11

of available regulatory alternatives and, if
regulation is necessary, to select regulato­
ry approaches that maximize net benefits
(including (i) potential economic, envi­
ronmental, and public health and safety
effects, (ii) potential distributive impacts,
and (iii) equity). Executive Order 13563
emphasizes the importance of quanti­
fying both costs and benefits, reducing
costs, harmonizing rules, and promoting
flexibility.
These final regulations have been des­
ignated as subject to review under Exec­
utive Order 12866 pursuant to the Mem­
orandum of Agreement (April 11, 2018)
(MOA) between the Treasury Department
and the Office of Management and Budget
(OMB) regarding review of tax regula­
tions. The Office of Information and Reg­
ulatory Affairs has designated these final
regulations as significant under section
1(b) of the MOA.
A. Background, Need for the Final
Regulations, and Economic Analysis of
Final Regulations
The Tax Equity and Fiscal Responsi­
bility Act of 1982 (TEFRA), Public Law
97–248, (96 Stat. 610), first directed the
Secretary to prescribe regulations for re­
quiring returns to be filed on magnetic
media, a term generally used to refer to
electronic filing at that time. TEFRA pro­
hibited the Secretary from requiring in­
come tax returns of individuals, estates,
and trusts to be filed in a manner other
than on paper forms. In 1998, Congress
amended section 6011(e) of the Code to
prohibit the Secretary from requiring the
electronic filing of a return unless the fil­
er is required to file at least 250 returns
during the calendar year. The Treasury
Department and the IRS subsequently is­
sued regulations that required a person to
file information returns electronically if
that person is required to file 250 or more
information returns in a calendar year.
The regulations provide that the 250-re­
turn threshold applied separately to each
type of information return covered under
the regulations. The Treasury Department
and the IRS also issued regulations that
set a 250-return threshold in determining
whether large corporation tax returns, S
corporation tax returns, and other returns
must be electronically filed.

537

Since 1998, the technology underlying
electronic filing has become much more
widely available, both in the form of tax
return preparation software and electronic
filing services offered by tax return pre­
parers and other service providers. By
2019, over 98.8 percent of information
returns were already being filed electron­
ically. In July of that year, the President
signed into law the Taxpayer First Act
(TFA). The TFA authorizes the Secretary
to prescribe regulations that decrease the
number of returns a filer may file without
being required to file electronically from
250 to 10.
When returns are filed on paper, the
IRS transcribes much of the input data to
electronic format. In some cases, employ­
ees must manually input this data, requir­
ing significant IRS resources to be spent
on otherwise needless processing and
data entry rather than serving taxpayers in
other ways. Manual data entry can cause
delays in the input and retrieval of data,
affecting the timeliness and accuracy of
processing these forms. This can lead to
delays or other disadvantageous outcomes
for taxpayers. In some cases, manual data
entry can cause delays in the information
available for law enforcement and other
users to detect potential money launder­
ing, terrorist financing, and other tax and
financial fraud. Moreover, the increased
accuracy of the data received from elec­
tronic filing reduces transcription errors
and the cost for the IRS and taxpayers to
resolve these errors.
These final regulations impose elec­
tronic-filing requirements on persons re­
quired to file certain returns, including
partnership returns, corporate income
tax returns, unrelated business income
tax returns, withholding tax returns, and
certain information returns, registration
statements, disclosure statements, notifi­
cations, actuarial reports, and certain ex­
cise tax returns. Specifically, the final reg­
ulations reduce the 250-return threshold
enacted in 1998 to the 10-return threshold
provided by the TFA. Under current reg­
ulations, the 250-return threshold applies
separately to each type of information
return covered under the regulations. The
final regulations require filers to aggregate
across returns types to determine whether
a filer meets the 10-return threshold and is
thus required to file electronically.

March 13, 2023

The IRS receives nearly 4 billion infor­ file electronically, resulting in approxi­ gate the need for regulations to further re­
mation returns per year and projects that by mately 39-41 percent of paper information duce the number of paper returns the IRS
2028, it will receive over 5 billion infor­ returns currently filed to be filed electron­ is required to manually process each year.
mation returns each year. See https://www. ically. At the 10-return threshold, the IRS
Because the vast majority of returns
irs.gov/statistics/soi-tax-stats-calendar- is only requiring 13-16 percent of the larg­ subject to these final regulations are al­
year-projections-publication-6961 (last est paper information return filers to file ready filed electronically, the Treasury
visited January 13, 2023). In 2019, the IRS electronically, but this will result in 62-64 Department and the IRS expect that the
received nearly 40 million paper informa­ percent of all outstanding paper informa­ final regulations will not have any mean­
tion returns even though approximately 99 tion returns to be filed electronically.
ingful impact on economic behavior. Elec­
percent of all information returns for that
In 2020, approximately 13 million out tronic filing has become more common,
year were filed electronically.
of 35 million paper information returns accessible, and economical. The table be­
For taxable year 2020, the data shows were filed by filers filing 1-10 returns and low shows recent trends in the electron­
that creating a 50-return threshold would these filers averaged 2.78 returns each. ic-filing rates of tax returns and informa­
require 1-2 percent of the largest paper in­ This means approximately 85 percent of tion returns. Eighty-one percent of all tax
formation return filers to file electronical­ all paper information return filers would returns, including 95 percent of individual
ly, resulting in approximately 23 percent not be subject to the electronic-filing man­ income tax returns, were filed electroni­
of all paper information returns current­ date at a 10-return threshold based on the cally in fiscal year 2020, rising from 68
ly filed to be filed electronically. For the 2020 data, yet nearly two-thirds of all pa­ percent for all tax returns and 87 percent
same year, a 25-return threshold would per information returns would then be re­ for individual income tax returns in 2016.
68 percent
all tax
returns
andto87
for individual
income
tax all
returns
in 2016.
require from
approximately
4-5 for
percent
of the
quired
be percent
filed electronically.
Thus the
Nearly
information
returns submitted
largest paper information return filers to high rate of electronic filing does not ne­ to the IRS were filed electronically.

Nearly all information returns submitted to the IRS were filed electronically.
Fiscal Year
All tax returns
Individual income tax returns
Information returns, excluding forms processd by the Social
Secuirty Administration (Form SSA-1099, Form RRB-1099, and
W-2)
Data source: IRS Publication 6292 and IRS Data Book

2016
68%
87%

2017
70%
88%

2018
71%
88%

2019
73%
90%

2020
81%
95%

99%

99%

99%

99%

100%

In the limited circumstances in which the cost to comply with these electronic-filing

In the limited circumstances in which religious communities for whom using the envelope, re-route the form if need­
the cost to comply with these electron­ the technology required to file in elec­ ed, ensure the return is processable and
requirements would cause undue hardship, many of these regulations provide a waiver from
ic-filing requirements would cause un­ tronic form conflicts with their religious includes a Taxpayer Identification Num­
due hardship, many of these regulations beliefs. An exemption means that filers ber (TIN), and then date stamp the return.
filing. The IRS
grants
requests.
According
provideelectronically
a waiver from electronically
fil­ routinely
do not have
to be meritorious
pre-approved hardship
to paper waiver
This initial
step must
take place within
ing. The IRS routinely grants meritori­ file. Thus, filers that are eligible for an ex­ 30 days of receipt to allow timely corre­
ous hardship
requests.such
According
emption would
withare
thenot
filerlimited
of processable
to thewaiver
regulations,
undue hardship
couldnot
beexperience
caused byadditional
a range ofspondence
factors that
to the regulations, such undue hardship burden under the regulations.
returns to give the filer time to correct the
could be caused by a range of factors
enacting TFA, Congress made clear mistakes and re-file.
to the financial cost that would beInincurred
by the filer. For example, a hardship to comply with
The IRS employee must next review
that are not limited to the financial cost its intention to broaden the requirements
that would be incurred by the filer. For to file returns electronically. However, the return to determine whether it is scan­
thea electronic-filing
apply torequirements
remote populations
limited
online access
andincludes
nable
or non-scannable,
which
example,
hardship to complyrequirements
with the the can
broadened
intended with
electronic-filing requirements can apply by Congress will not occur without final removing staples and taping any cuts or
to remote
populations
withadequate
limited online
portions
of the
document. The IRS
regulations.
In the absence
of these reg­
filers
who lack
technological
proficiency.
Regardless
of thetorn
factors,
little
economic
access and filers who lack adequate tech­ ulations, the IRS would continue to de­ employee must then cross check the in­
nological
proficiency.
Regardless
of the
formation
on requires
the returnsnoagainst
voteprocess
resources
to costly
and inefficient
burden
is expected
for the
waiver
because
submitting
a hardship
waiver
morethe par­
factors, little economic burden is expected processing of paper filings, resources that ent transmittal return (Form 1096) for the
for the waiver process because submitting could be allocated to modernization of IT payer’s TIN, payer’s name, and if either
technology
than filing
paper
For information returns, waiverisrequests
can
be made
forcheck other
a hardship
waiver requires
no more
tech­ returns.
infrastructure.
missing or
illegible,
cross
nology than filing paper returns. For in­
Significant administrative costs in­ submissions for the information or send
many
returns
onrequests
the same
8508.
foremployee
Form 8508.)
formation
returns,
waiver
can Form
be clude
the(See
timeinstructions
it takes an IRS
correspondence to the filer.
made for many returns on the same Form to manually process paper information
Scannable submissions are then pre­
8508. (See instructions
for Form
returns. First,
the IRS
employeeprovide
must exemptions
pared for processing
through the Service
In addition
to 8508.)
hardship waivers,
the final
regulations
for religious
In addition to hardship waivers, the open and inspect the mail to determine Center Recognition/Image Processing
final regulations provide exemptions for what type of return or other form is in System (SCRIPS). Non-scannable sub­

communities for whom using the technology required to file in electronic form conflicts with

their religious beliefs. An exemption means that filers do not have to be pre-approved to paper
March 13, 2023
538
Bulletin No. 2023–11
file. Thus, filers that are eligible for an exemption would not experience additional burden under

missions are sorted, coded, and batched
after ensuring all necessary information
is included, which varies between types
of information returns. The batched in­
formation returns are then forwarded to
the appropriate IRS facility for Integrated
Submission and Remittance Processing
(ISRP). The ISRP employee must manu­
ally enter all required fields and add the
appropriate document and format codes
in accordance with the Internal Revenue
Manual.
In August 2020, the IRS projected the
potential cost and savings for implementa­
tion of the reduction of the electronic-fil­
ing threshold. The IRS estimated that the
savings for IRS Submission Processing
(IRS SP) due to fewer paper information
returns to process when the electronic-fil­
ing threshold was reduced from 250 to 100
returns is 35 full-time equivalents (FTEs),
or $2 million. This savings would be offset
by the cost to enroll new participants in
the FIRE System, which the IRS estimat­
ed would cost 9 FTEs, or $500,000. Thus,
the IRS’s net savings as a result of the re­
duction to the electronic-filing threshold
from 250 to 100 returns is estimated to be
26 FTEs, or $1.5 million.
The IRS estimated that the savings for
IRS SP due to fewer paper information
returns to process when the electronic fil­
ing threshold was reduced from 100 to 10
returns is 147 FTEs, or $8.3 million. This
savings would be offset by the cost to en­
roll new participants in the FIRE System,
which the IRS estimated would cost 40
FTEs, or $2.3 million. Thus, the IRS’s net
savings as a result of the reduction to the
electronic-filing threshold from 100 to 10
returns is estimated to be 107 FTEs, or $6
million.
Finally, the IRS estimated that the sav­
ings for IRS SP due to fewer paper infor­
mation returns to process when the elec­
tronic-filing threshold was reduced from
250 to 10 returns is 182 FTEs, or $10.3
million. For the first year of the reduction,
the savings would be offset by the cost to
enroll new participants in the FIRE Sys­
tem, which the IRS estimated would cost
49 FTEs, or $2.8 million. Thus, for the
first year of implementation, the IRS’s net
savings as a result of the reduction to the
electronic-filing threshold from 250 to 10
returns is estimated to be 133 FTEs, or
$7.5 million.

Bulletin No. 2023–11

For each subsequent year, the IRS esti­
mated that the savings for IRS SP due to
fewer paper information returns to process
is 147 FTEs, or $8.3 million, which would
be offset by some cost for telephone
support.
An increase in electronic filing percent­
age rates change will result in millions
fewer paper documents, freeing up valu­
able IRS resources for other tasks. Based
on taxable year 2020 data, a 10-return
electronic-filing threshold would have re­
sulted in approximately 21 million fewer
paper information returns. While the IRS
projects the number of paper returns will
continue to decrease even absent changes
to the regulations, the decrease is project­
ed to be gradual.
Requiring more electronic filing
would increase the timeliness and accu­
racy of data entry, reduce postage costs,
promote IT modernization efforts, real­
locate IRS staff for priority assignments,
and provide IRS criminal and civil inves­
tigators and other agencies with access to
the data with more up-to-date and accu­
rate information. Moreover, increased ef­
ficiency in processing returns will allow
the IRS to provide faster and better cus­
tomer service to taxpayers. Given the in­
creasing prevalence of electronic filings
in recent years, the final regulations re­
duce the 250-return threshold enacted in
1998 to the 10-return threshold provided
by the TFA.
II. Regulatory Flexibility Act
Pursuant to the Regulatory Flexibili­
ty Act (5 U.S.C. chapter 6), it is hereby
certified that these regulations will not
have a significant economic impact on a
substantial number of small entities. Al­
though these rules may affect a substantial
number of small entities, for the reasons
discussed in the following paragraphs, the
economic impact is not significant.
Under section 6011(e) of the Code and
§§1.6050M-1, 301.6011-2, 301.6011-3,
301.6011-5, 301.6037-2, 301.6057-3,
301.6058-2, and 301.6059-2, filers are
already required to file returns and state­
ments electronically if, during a calendar
year, they are required to file 250 or more
returns. The eight rules—§§1.6050M-1,
301.6011-2, 301.6011-3, 301.6011-5,
301.6037-2, 301.6057-3, 301.6058-2, and

539

301.6059-2—will lower the 250-return
threshold to 10, as authorized by section
6011(e), as amended by section 2301 of
the TFA. A filer may request that the IRS
waive the electronic-filing requirement
if the filer’s cost to comply with the rule
would cause a financial hardship. The
cost to electronically-file for a filer varies
by form and by how many types of forms
the filer is required to file. For example,
low volume information return filers
can electronically-file for approximately
$3.25 per form, with options available for
filing an unlimited number of informa­
tion returns starting at $120. Commercial
software is available for business returns
such as Forms 1120 for as low as $125.
The IRS routinely grants meritorious
hardship-waiver requests. Accordingly,
the economic burden on the limited num­
ber of small entities that are not currently
filing electronically will be slight; small
entities that would experience a financial
hardship because of these eight rules may
seek a waiver. Requesting a waiver will
impose a minor cost in the form of time
to read the expanded instructions, gather
and prepare for submission the informa­
tion and documents substantiating the
request (if needed), and to complete the
form itself.
Under section 6050I of the Code and
§§1.6050I-1 and 1.6050I-2, filers are re­
quired to file Forms 8300 if, in the course
of their trade or business, they receive
more than $10,000 in cash (as that term is
defined in section 6050I(d)) in one trans­
action or in two or more related trans­
actions. The rule under §301.6011-2(b)
(3) requires filers of Forms 8300 to file
those forms electronically if such filers
are also required to file returns electron­
ically under paragraphs (b)(1) and (2) of
§301.6011-2. The Treasury Department
and the IRS expect filers of Form 8300
to use FinCEN’s BSA E-Filing System,
which is free and may be accessed with an
internet connection. See https://bsaefiling.
fincen.treas.gov/main.html (last visited
January 13, 2023). The filers may incur
minor costs in the form of time needed to
enroll in FinCEN’s BSA E-Filing System
and to become familiar with the system,
but the enrollment process should only
take several minutes. The economic im­
pact on small entities should thus not be
significant.

March 13, 2023

Under section 6011(e)(4) of the Code
and §301.1474-1, financial institutions
defined in section 1471(d)(5) of the
Code already are required to electron­
ically file Forms 1042-S. The rule un­
der §301.1474-1(a) extends this filing
requirement to Forms 1042 filed by the
same financial institutions. Small enti­
ties that would experience a financial
hardship because of this rule may seek a
hardship waiver.
Under section 6011(h) of the Code, as
amended by section 3101 of the TFA, or­
ganizations required to file annual returns
relating to any tax imposed by section 511
must file those returns in electronic form.
Because the regulation §301.6011-10
implements this statutory requirement,
the economic impact of the regulation
on small organizations should thus be
insignificant.
Under section 6033(n), as amended by
section 3101 of the TFA, organizations re­
quired to file returns under section 6033
must file those returns in electronic form.
Because the regulations under §§1.60334, 53.6011-1, and 301.6033-4 implement
this statutory requirement, the economic
impact of these regulations on small orga­
nizations should thus be insignificant.
The
seven
regulations
under
§§54.6011-3, 301.6011-11, 301.6011-12,
301.6011-13, 301.6011-14, 301.6011-15,
and 301.6012-2 require electronic filing
for certain returns not currently required
to be filed electronically. Because elec­
tronic filing has become more common,
accessible, and economical, the econom­
ic impact of these rules on small entities
should be insignificant. Moreover, as
discussed above, if the cost to comply
with these electronic-filing requirements
would cause a financial hardship, an en­
tity may request a waiver. The IRS rou­
tinely grants meritorious hardship waiv­
er requests. Accordingly, the burden on
small entities affected by these rules will
be slight.
Accordingly, it is hereby certified that
these regulations will not have a signifi­
cant economic impact on a substantial
number of small entities within the mean­
ing of section 601(6) of the RFA.
Pursuant to section 7805(f) of the In­
ternal Revenue Code, the NPRM preced­
ing this regulation was submitted to the
Chief Counsel for the Office of Advocacy

March 13, 2023

of the Small Business Administration for
comment on its impact on small business.
No comments were received from the
Chief Counsel for the Office of Advoca­
cy of the Small Business Administration.
III. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 requires that agencies
assess anticipated costs and benefits and
take certain other actions before issuing a
final rule that includes any Federal man­
date that may result in expenditures in any
one year by a state, local, or tribal gov­
ernment, in the aggregate, or by the pri­
vate sector, of $100 million in 1995 dol­
lars, updated annually for inflation. This
regulation does not include any Federal
mandate that may result in expenditures
by state, local, or tribal governments,
or by the private sector in excess of that
threshold.
IV. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on state and local gov­
ernments, and is not required by statute,
or preempts state law, unless the agency
meets the consultation and funding re­
quirements of section 6 of the Executive
Order. This rule does not have federalism
implications and does not impose sub­
stantial direct compliance costs on state
and local governments or preempt state
law within the meaning of the Executive
Order.
V. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the Office of
Information and Regulatory Affairs des­
ignated this rule as not a “major rule,” as
defined by 5 U.S.C 804(2).
Statement of Availability of IRS
Documents
IRS revenue procedures, notices, and
other guidance cited in this document are
published in the Internal Revenue Bulletin
and are available from the Superintendent

540

of Documents, U.S. Government Publish­
ing Office, Washington, DC 20402, or by
visiting the IRS website at http://www.irs.
gov.
Drafting Information
The principal author of these final reg­
ulations is Casey R. Conrad of the Office
of the Associate Chief Counsel (Proce­
dure and Administration). Other person­
nel from the Treasury Department and the
IRS participated in the development of the
regulations.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and record­
keeping requirements.
26 CFR Part 53
Excise taxes, Foundations, Invest­
ments, Lobbying, Reporting and record­
keeping requirements.
26 CFR Part 54
Excise taxes, Pensions, Reporting and
recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Ex­
cise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 1, 53, 54,
and 301 are amended as follows:
PART 1-INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding the following
entries in numerical order to read in part
as follows:
Authority: 26. U.S.C. 7805 * * *
*****
Section 1.6033-4 also issued under 26
U.S.C. 6033.
*****

Bulletin No. 2023–11

Section 1.6037-2 also issued under 26
U.S.C. 6037.
*****
Par. 2. Section 1.1461-1 is amended by
removing paragraph (c)(5); redesignating
paragraph (i) as paragraph (j); adding a
new paragraph (i); and revising newly re­
designated paragraph (j).
The addition and revision read as
follows:
§1.1461-1 Payment and returns of tax
withheld.
*****
(i) Reporting in electronic form. See
§§301.6011-2(b) and 301.6011-15 of
this chapter for the requirements of a
withholding agent that is not a financial
institution with respect to the filing of
Forms 1042-S and 1042 in electronic
form. See §301.1474-1(a) of this chap­
ter, which applies for purposes of this
section to a withholding agent that is a
financial institution with respect to the
filing of Forms 1042 and 1042-S in elec­
tronic form.
(j) Applicability date. The rules of this
section apply to returns required to be
filed for taxable years ending on or after
December 31, 2023. (For returns required
to be filed for taxable years ending before
December 31, 2023, see this section as in
effect and contained in 26 CFR part 1, as
revised April 1, 2022.)
Par. 3. Section 1.1471-0 is amended by
revising:
a. The entries in the table of contents
for §1.1474-1(e) and (j);
b. The heading for §301.1474-1; and
c. §301.1474-1(d)(1) and (e).
The revisions read as follows:
§1.1471-0 Outline of regulation
provisions for sections 1471 through
1474.
*****
§1.1474-1 Liability for withheld tax and
withholding agent reporting.
*****
(e) Reporting in electronic form.
*****
(j) Applicability date.
*****

Bulletin No. 2023–11

§301.1474-1 Required use of electron­
ic form for financial institutions filing
Form 1042, Form 1042-S, or Form 8966.
*****
(d) * * *
(1) Magnetic media or electronic form.
*****
(e) Applicability date.
Par. 4. Section 1.1474-1 is amended by
revising paragraphs (e) and (j) to read as
follows:
§1.1474-1 Liability for withheld tax
and withholding agent reporting.
*****
(e) Reporting in electronic form. See
§§301.6011-2(b) and 301.6011-15 of this
chapter, which apply for purposes of this
section, for the requirements of a with­
holding agent that is not a financial insti­
tution with respect to the filing of Forms
1042-S and Form 1042 in electronic form.
See §301.1474-1(a) of this chapter for the
requirements applicable to a withholding
agent that is a financial institution with
respect to the filing of Forms 1042 and
1042-S in electronic form.
*****
(j) Applicability date. The rules of this
section apply to returns required to be
filed for taxable years ending on or after
December 31, 2023. (For returns required
to be filed for taxable years ending before
December 31, 2023, see this section as in
effect and contained in 26 CFR part 1, as
revised April 1, 2022.)
Par. 5. Section 1.6033-4 is revised to
read as follows:
§1.6033-4 Required filing in electronic
form for returns by organizations
required to file returns under section
6033.
(a) In general. The return of an or­
ganization that is required to be filed in
electronic form under §301.6033-4 of this
chapter must be filed in accordance with
IRS revenue procedures, publications,
forms, instructions, or other guidance.
(b) Applicability date. The rules of this
section apply for returns required to be
filed for taxable years ending on or after
February 23, 2023.
Par. 6. Section 1.6037-2 is revised to
read as follows:

541

§1.6037-2 Required use of electronic
form for income tax returns of electing
small business corporations.
(a) In general. The return of an electing
small business corporation that is required
to be filed electronically under §301.60372 of this chapter must be filed in accor­
dance with IRS revenue procedures, pub­
lications, forms, or instructions, including
those posted electronically.
(b) Applicability date. The rules of this
section apply to returns required to be
filed for taxable years ending on or after
December 31, 2023.
Par. 7. Section 1.6045-2 is amended by
revising paragraphs (g)(2) and (i) to read
as follows:
§1.6045-2 Furnishing statement
required with respect to certain
substitute payments.
*****
(g) * * *
(2) Reporting in electronic form.
For information returns filed after De­
cember 31, 1996, see §301.6011-2 of
this chapter for rules relating to filing
information returns in electronic form
and for rules relating to waivers granted
for undue hardship. A broker or barter
exchange that fails to file a Form 1099
electronically, when required, may be
subject to a penalty under section 6721
for each such failure. See paragraph (g)
(4) of this section.
*****
(i) Applicability date. This section ap­
plies to substitute payments received by a
broker after December 31, 1984. Section
1.6045-2(c) (as contained in 26 CFR part
1, revised July 15, 2014) applies to payee
statements due after December 31, 2014.
For payee statements due before January
1, 2015, §1.6045-2(c) (as contained in 26
CFR part 1, revised April 2013) applies.
Paragraph (g)(2) of this section applies to
information returns required to be filed
during calendar years beginning after De­
cember 31, 2023.
Par. 8. Section 1.6045-4 is amended by
removing and reserving paragraph (k) and
revising paragraph (s).
The revision reads as follows:

March 13, 2023

§1.6045-4 Information reporting on
real estate transactions with dates of
closing on or after January 1, 1991.

§1.6050I-1 Returns relating to cash in
excess of $10,000 received in a trade or
business.

*****
(s) Applicability date. This section ap­
plies for real estate transactions with dates
of closing (as determined under paragraph
(h)(2)(ii) of this section) that occur on or
after January 1, 1991. Section 1.60454(b)(2)(i)(E), (b)(2)(ii), and (c)(2)(i) (as
contained in 26 CFR part 1, revised May
28, 2009) applies to sales or exchanges of
standing timber for lump-sum payments
completed after May 28, 2009. Section
1.6045-4(m)(1) (as contained in 26 CFR
part 1, revised July 15, 2014) applies to
payee statements due after December 31,
2014. For payee statements due before
January 1, 2015, §1.6045-4(m)(1) (as
contained in 26 CFR part 1, revised April
2013) applies. The removal of paragraph
(k) of this section applies for information
returns required to be filed during calendar
years beginning after December 31, 2023.
Par. 9. Section 1.6050I-0 is amended
by revising the entry in the table of con­
tents for §1.6050I-1(d)(2)(ii) to read as
follows:

(a) * * *
(3) * * *
(ii) Exception. An agent who receives
cash from a principal and uses all of the
cash within 15 days in a cash transaction
(second cash transaction) which is report­
able under section 6050I or section 5331
of title 31 of the United States Code and
the corresponding regulations (31 CFR
Chapter X), and who discloses the name,
address, and taxpayer identification num­
ber of the principal to the recipient in the
second cash transaction need not report the
initial receipt of cash under this section.
*****
(c) * * *
(1) * * *
(iv) Exception for certain loans. A ca­
shier’s check, bank draft, traveler’s check,
or money order received in a designated
reporting transaction is not treated as cash
pursuant to paragraph (c)(1)(ii)(B)(1) of
this section if the instrument constitutes
the proceeds of a loan from a bank (as that
term is defined in 31 CFR Chapter X).
*****
(d) * * *
(2) * * *
(i) In general. If a casino receives cash
in excess of $10,000 and is required to
report the receipt of such cash directly to
the Department of the Treasury (Treasury
Department) under 31 CFR 1021.310 or
1010.360 and is subject to the recordkeep­
ing requirements of 31 CFR 1021.400,
then the casino is not required to make
a return with respect to the receipt of
such cash under section 6050I and these
regulations.
(ii) Casinos exempt under 31 CFR
1010.970(c). Under the authority of sec­
tion 6050I(c)(1)(A), the Secretary may
exempt from the reporting requirements
of section 6050I casinos with gross annual
gaming revenue in excess of $1,000,000
that are exempt under 31 CFR 1010.970(c)
from reporting certain cash transactions to
the Treasury Department under 31 CFR
1021.310 or 1010.360. The determination
whether a casino which is granted an ex­
emption under 31 CFR 1010.970(c) will
be required to report under section 6050I
will be made on a case-by-case basis,

§1.6050I-0 Table of contents.
*****
§1.6050I-1 Returns relating to cash in
excess of $10,000 received in a trade or
business.
*****
(d) * * *
(2) * * *
(ii) Casinos exempt under 31 CFR
1010.970(c).
*****
Par. 10. Section 1.6050I-1 is amended
by:
a. Revising paragraphs (a)(3)(ii), (c)(1)
(iv), and (d)(2)(i) and (ii).
b. In paragraph (d)(2)(iv), redesignat­
ing the example as paragraph (d)(2)(iv)
(A).
c. Revising newly redesignated para­
graph (d)(2)(iv)(A) and adding a reserved
paragraph (d)(2)(iv)(B).
d. Revising paragraphs (e)(1) and (e)
(3)(i).
e. Adding paragraph (h).
The revisions and additions read as
follows:

March 13, 2023

542

concurrently with the granting of such an
exemption.
*****
(iv) * * *

(A) Example. A and B are casinos having gross
annual gaming revenue in excess of $1,000,000. C
is a casino with gross annual gaming revenue of less
than $1,000,000. Casino A receives $15,000 in cash
from a customer with respect to a gaming transac­
tion which the casino reports to the Treasury Depart­
ment under 31 CFR 1021.310 and 1010.360. Casino
B’s hotel division receives $15,000 in cash from a
customer in payment for accommodations provided
to that customer at Casino B’s hotel. Casino C re­
ceives $15,000 in cash from a customer with respect
to a gaming transaction. Casino A is not required to
report the transaction under section 6050I or these
regulations because the exception for certain casinos
provided in paragraph (d)(2)(i) of this section (ca­
sino exception) applies. Casino B’s hotel division
is required to report under section 6050I and these
regulations because the casino exception does not
apply to the receipt of cash by a nongaming business
division. Casino C is required to report under sec­
tion 6050I and these regulations because the casino
exception does not apply to casinos having gross an­
nual gaming revenue of $1,000,000 or less which do
not have to report to the Treasury Department under
31 CFR 1021.310 and 1010.360.

(B) [Reserved]
*****
(e) * * *
(1) Time of reporting. The reports re­
quired by this section must be filed in ac­
cordance with the Form 8300 instructions
and related publications by the 15th day
after the date the cash is received. Howev­
er, in the case of multiple payments relat­
ing to a single transaction (or two or more
related transactions), see paragraph (b) of
this section.
*****
(3) * * *
(i) Where to file. A person making a re­
turn of information under this section must
file Form 8300 in accordance with the
form instructions and related publications.
*****
(h) Applicability date. The rules of this
section apply for returns required to be
filed during calendar years beginning after
December 31, 2023.
Par. 11. Section 1.6050I-2 is amended
by revising paragraphs (c)(1)(i), (c)(3)(i),
and (f) to read as follows:
§1.6050I-2 Returns relating to cash in
excess of $10,000 received as bail by
court clerks.
*****

Bulletin No. 2023–11

(c) * * *
(1) * * *
(i) In general. The information return
required by this section must be filed in
accordance with the Form 8300 instruc­
tions and related publications by the 15th
day after the date the cash bail is received.
*****
(3) * * *
(i) Where to file. Returns required by
this section must be filed in accordance
with the Form 8300 instructions and relat­
ed publications. A copy of the information
return required to be filed under this sec­
tion must be retained for five years from
the date of filing.
*****
(f) Applicability date. The rules of this
section apply for returns required to be
filed during calendar years beginning after
December 31, 2023.
Par. 12. Section 1.6050M-1 is amended
by revising paragraphs (d)(2) and (3) and
(f) to read as follows:
§1.6050M-1 Information returns
relating to persons receiving contracts
from certain Federal executive
agencies.
*****
(d) * * *
(2) Form of reporting—(i) General
rule concerning electronic filing. The
information returns required by this sec­
tion with respect to contracts of a Fed­
eral executive agency for each calendar
quarter must be made in one submission
(or in multiple submissions if permitted
by paragraph (d)(4) of this section). Ex­
cept as provided in paragraph (d)(2)(ii)
of this section, the required returns must
be made in electronic form (within the
meaning of §301.6011-2(a)(1) of this
chapter) in accordance with any applica­
ble revenue procedure or other guidance
promulgated by the Internal Revenue
Service for the filing of such returns un­
der section 6050M.
(ii) Exceptions from electronic filing.
Any Federal executive agency that, on
October 1, has a reasonable expectation
of entering into, during the one-year
period beginning on that date, fewer
than 10 contracts subject to the report­
ing requirements under this section that
are to be filed during the calendar years

Bulletin No. 2023–11

after 2023, may make the information
returns required by this section for each
quarter of that one-year period on the
prescribed paper Form 8596 in accor­
dance with the instructions accompany­
ing such form.
(iii) Exclusions from electronic-filing
requirements—(A) Waivers. The Com­
missioner may grant waivers of the re­
quirements of this section in cases of
undue hardship. One principal factor in
determining hardship will be the amount,
if any, by which the cost of filing the re­
turn electronically in accordance with this
section exceeds the cost of filing the return
on paper. A request for a waiver must be
made in accordance with applicable IRS
revenue procedures, publications, forms,
instructions, or other guidance, including
postings to the IRS.gov website. The waiv­
er request will specify the type of filing
(that is, a return required under paragraph
(a) of this section) and the period to which
it applies.
(B) Exemptions. The Commissioner
may provide exemptions from the require­
ments of this section to promote effective
and efficient tax administration. A sub­
mission claiming an exemption must be
made in accordance with applicable IRS
revenue procedures, publications, forms,
instructions, or other guidance, including
postings to the IRS.gov website.
(3) Place of filing—(i) Returns in electronic form. Information returns made un­
der this section in electronic form must be
filed with the Internal Revenue Service in
accordance with any applicable revenue
procedure or other guidance promulgated
by the Internal Revenue Service relating to
the filing of returns under section 6050M.
(ii) Form 8596. Information returns
made on paper Form 8596 must be filed
with the Internal Revenue Service at the
location specified in the instructions for
that form.
*****
(f) Applicability date—(1) Contracts
required to be reported. Except as other­
wise provided in this paragraph (f), this
section applies to each Federal executive
agency with respect to its contracts en­
tered into on or after January 1, 1989 (in­
cluding any increase in amount obligated
on or after January 1, 1989, that is treated
as a new contract under paragraph (e) of
this section).

543

(2) Contracts not required to be reported. A Federal executive agency is not
required to report—
(i) Any basic or initial contract entered
into before January 1, 1989,
(ii) Any increase contract action occur­
ring before January 1, 1989, that is treated
as a new contract under paragraph (e) of
this section, or
(iii) Any increase contract action that is
treated as a new contract under paragraph
(e) of this section if the basic or initial
contract to which that contract action re­
lates was entered into before January 1,
1989, and—
(A) The increase occurs before April 1,
1990, or
(B) The amount of the increase does
not exceed $50,000.
(3) Illustration. (i) If a Federal execu­
tive agency enters into an initial contract
on December 1, 1988, and the amount
of money obligated under the contract is
increased by $55,000 on April 15, 1990,
then there is no reporting requirement
with respect to the contract when entered
into on December 1, 1988. However, the
April 15, 1990, increase, which is treat­
ed as a new contract under paragraph (e)
of this section, is subject to the reporting
requirements of this section because it is
considered to be a new contract entered
into on April 15, 1990.
(ii) If the $55,000 increase had oc­
curred before April 1, 1990, there would
not have been a reporting requirement
with respect to that increase.
(4) Filing requirements for contracts required to be reported. Section
1.6050M-1(d)(2) and (3) (as contained in
26 CFR part 1, revised February 23, 2023)
applies to information returns required to
be filed during calendar years beginning
after December 31, 2023.
PART 53—FOUNDATION AND
SIMILAR EXCISE TAXES
Par. 13. The authority citation for part
53 is amended by adding an entry in nu­
merical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 53.6011-1 also issued under 26
U.S.C. 6011.
*****
Par. 14. Section 53.6011-1 is amended
by:

March 13, 2023

a. Removing paragraph (c).
b. Redesignating paragraphs (d) and (e)
as paragraphs (c) and (d), respectively.
c. Adding a new paragraph (e).
The addition reads as follows:
§53.6011-1 General requirement of
return, statement or list.
*****
(e) The rules of this section apply to
any returns required to be filed under this
section on or after January 11, 2021.
PART 54—PENSION EXCISE TAXES
Par. 15. The authority citation for part
54 is amended by adding an entry in nu­
merical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
*****
Section 54.6011-3 also issued under 26
U.S.C. 6011.
*****
Par. 16. Section 54.6011-3 is added to
read as follows:
§54.6011-3 Required use of electronic
form for the filing requirements for the
return for certain excise taxes related
to employee benefit plans.
(a) Excise tax returns required in electronic form. Any employer or individual
required to file an excise tax return on
Form 5330, Return of Excise Taxes Related to Employee Benefit Plans, under
§54.6011-1 of this chapter must file the
excise tax return electronically if the filer
is required by the Internal Revenue Code
or regulations to file at least 10 returns of
any type during the calendar year that the
Form 5330 is due. The Commissioner may
direct the type of electronic filing and may
also exempt certain returns from the elec­
tronic-filing requirements of this section
through revenue procedures, publications,
forms, instructions, or other guidance, in­
cluding postings on the IRS.gov website.
Returns filed electronically must be made
in accordance with the applicable revenue
procedures, publications, forms, instruc­
tions, or other guidance.
(b) Exclusions from electronic-filing
requirements—(1) Waivers. The Commis­
sioner may grant waivers of the require­
ments of this section in cases of undue

March 13, 2023

hardship. One principal factor in deter­
mining hardship will be the amount, if
any, by which the cost of filing the return
electronically in accordance with this sec­
tion exceeds the cost of filing the return
on paper. A request for a waiver must be
made in accordance with applicable IRS
revenue procedures, publications, forms,
instructions, or other guidance, including
postings to the IRS.gov website. The waiv­
er request will specify the type of filing
(that is, a return required under §54.60111 of this chapter) and the period to which
it applies.
(2) Exemptions. The Commissioner
may provide exemptions from the require­
ments of this section to promote effective
and efficient tax administration. A sub­
mission claiming an exemption must be
made in accordance with applicable IRS
revenue procedures, publications, forms,
instructions, or other guidance, including
postings to the IRS.gov website.
(3) Additional exclusion. If the IRS’s
systems do not support electronic fil­
ing, taxpayers will not be required to file
electronically.
(c) Failure to file. If a filer required to
file the Form 5330 fails to file the report
electronically when required to do so by
this section, the filer has failed to file the
report. See generally section 6651(a)(1)
for the penalty for the failure to file a tax
return or to pay tax. For general rules re­
lating to the failure to file a tax return or to
pay tax, see the regulations under 26 CFR
301.6651-1 (Regulations on Procedure
and Administration).
(d) Meaning of terms. The follow­
ing definitions apply for purposes of this
section:
(1) Magnetic media or electronic form.
The terms magnetic media or electronic
form mean any media or form permitted
under applicable regulations, revenue pro­
cedures, or publications. These generally
include electronic filing, as well as mag­
netic tape, tape cartridge, diskette, and
other media specifically permitted under
the applicable regulations, procedures,
publications, forms, instructions, or other
guidance.
(2) Calculating the number of returns a
filer is required to file—(i) In general. For
purposes of this section, a filer is required
to file at least 10 returns during a calendar
year if the filer is required to file at least

544

10 returns of any type, including informa­
tion returns (for example, Forms W-2 and
Forms 1099), income tax returns, employ­
ment tax returns, and excise tax returns.
(ii) Definition of filer. For purposes of
this section, the term filer means the per­
son required to report the tax on the Form
5330. For general rules on who is required
to report the tax on the Form 5330, see the
Instructions to the Form 5330.
(e) Example. The following example
illustrates the provisions of paragraph (d)
(2) of this section:
(1) In 2023, Employer A (the plan sponsor and
plan administrator of Plan B) is required to file
Form 5330 for its nondeductible contribution under
section 4972 to Plan B. During the 2024 calendar
year, Employer A is required to file 20 returns (in­
cluding 19 Forms 1099-R Distributions From Pensions, Annuities, Retirement, Profit-Sharing Plans,
IRAs, Insurance Contracts, etc., and one Form 5500
series, Annual Return/Report of the Employee Benefit Plan). Plan B’s plan year is the calendar year. Be­
cause Employer A is required to file at least 10 returns
during the 2024 calendar year, Employer A must file
the 2023 Form 5330 for Plan B electronically.

(2) [Reserved]
(f) Applicability date. The rules of this
section apply to any Form 5330 required
to be filed for taxable years ending on or
after December 31, 2023.
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 17. The authority citation for part
301 is amended by adding entries in nu­
merical order to read in part as follows:
Authority: 26 U.S.C. 7805.
*****
Section 301.6011-10 also issued under
26 U.S.C. 6011.
Section 301.6011-11 also issued under
26 U.S.C. 6011.
Section 301.6011-12 also issued under
26. U.S.C. 6011.
Section 301.6011-13 also issued under
26 U.S.C. 6011.
Section 301.6011-14 also issued under
26 U.S.C. 6011.
Section 301.6011-15 also issued under
26 U.S.C. 6011.
Section 301.6012-2 also issued under
26 U.S.C. 6012.
*****
Section 301.6057-3 also issued under
26 U.S.C. 6011 and 6057.
Section 301.6058-2 also issued under
26 U.S.C. 6011 and 6058.

Bulletin No. 2023–11

Section 301.6059-2 also issued under
26 U.S.C. 6011 and 6059.
*****
Section 301.6721-1 also issued under
26 U.S.C. 6011 and 6721.
*****
Par. 18. Section 301.1474-1 is amend­
ed by revising the section heading and
paragraphs (a) through (c), (d)(1), and (e)
to read as follows:
§301.1474-1 Required use of electronic
form for financial institutions filing
Form 1042, Form 1042-S, or Form
8966.
(a) Financial institutions filing certain returns. If a financial institution
is required to file a Form 1042, Annual
Withholding Tax Return for U.S. Source
Income of Foreign Persons, (or succes­
sor form) under §1.1474-1(c) of this
chapter, the financial institution must
file the return information required by
the applicable forms and schedules elec­
tronically. If a financial institution is
required to file a Form 1042-S, Foreign
Person’s U.S. Source Income Subject to
Withholding, (or such other form as the
IRS may prescribe) under §1.1474-1(d)
of this chapter, the financial institution
must file the information required by the
applicable forms and schedules electron­
ically. Additionally, if a financial institu­
tion is required to file Form 8966, FATCA
Report, (or such other form as the IRS
may prescribe) to report certain infor­
mation about U.S. accounts, substantial
U.S. owners of foreign entities, or own­
er-documented FFIs as required under
this chapter, the financial institution must
file the required information in electronic
form. Returns filed electronically must
be made in accordance with applicable
regulations, revenue procedures, publi­
cations, forms, instructions, and the IRS.
gov internet site. In prescribing regula­
tions, revenue procedures, publications,
forms, and instructions, including those
on the IRS.gov internet site, the Commis­
sioner may direct the type of electronic
filing.
(b) Exclusions from electronic-filing
requirements—(1) Waivers. The Com­
missioner may grant waivers of the re­
quirements of this section in cases of
undue hardship. One principal factor in

Bulletin No. 2023–11

determining hardship will be the amount,
if any, by which the cost of filing the re­
turn electronically in accordance with
this section exceeds the cost of filing the
return on paper. A request for a waiver
must be made in accordance with appli­
cable IRS revenue procedures, publica­
tions, forms, instructions, or other guid­
ance, including postings to the IRS.gov
website. The waiver request will specify
the type of filing (that is, a return required
under §1.1474-1(c) or (d) of this chapter,
or a Form 8966) and the period to which
it applies.
(2) Exemptions. The Commissioner
may provide exemptions from the require­
ments of this section to promote effective
and efficient tax administration. A sub­
mission claiming an exemption must be
made in accordance with applicable IRS
revenue procedures, publications, forms,
instructions, or other guidance, including
postings to the IRS.gov website.
(3) Additional Exclusion. If the IRS’s
systems do not support electronic fil­
ing, taxpayers will not be required to file
electronically.
(c) Failure to file. If a financial institu­
tion fails to file a Form 1042 electronically
when required to do so by this section, the
financial institution has failed to file the
return. See section 6651 for the addition
to tax for failure to file a return. In deter­
mining whether there is reasonable cause
for failure to file the return, §301.66511(c) and rules similar to the rules in
§301.6724-1(c)(3) (undue economic hard­
ship related to filing information returns
electronically) will apply. If a financial
institution fails to file a Form 1042-S or
a Form 8966 electronically when required
to do so by this section, the financial in­
stitution has failed to comply with the
information reporting requirements un­
der section 6721 of the Code. See section
6724(c) for failure to meet magnetic me­
dia requirements. In determining whether
there is reasonable cause for failure to
file the return, §301.6651-1(c) and rules
similar to the rules in §301.6724-1(c)(3)
(undue economic hardship related to filing
information returns on magnetic media)
will apply.
(d) * * *
(1) Magnetic media or electronic form.
The terms magnetic media or electronic
form mean any media or form permitted

545

under applicable regulations, revenue pro­
cedures, or publications. These generally
include electronic filing, as well as mag­
netic tape, tape cartridge, diskette, and
other media specifically permitted under
the applicable regulations, procedures,
publications, forms, instructions, or other
guidance.
*****
(e) Applicability date. This section
applies to any Form 1042 (or successor
form) required to be filed for taxable years
ending on or after December 31, 2023.
This section applies to any Form 1042–S
or Form 8966 (or any other form that the
IRS may prescribe) filed with respect to
calendar years ending after December 31,
2013, except that paragraph (b)(2) of this
section only applies to Forms 1042-S or
Forms 8966 required to be filed for tax­
able years ending on or after December
31, 2023.
Par. 19. Section 301.6011-2 is amended
by revising the section heading and para­
graphs (a)(1), (b), (c), and (g) to read as
follows:
§301.6011-2 Required use of electronic
form.
(a) * * *
(1) Magnetic media or electronic form.
The terms magnetic media or electronic
form mean any media or form permitted
under applicable regulations, revenue pro­
cedures or publications, or, in the case of
returns filed with the Social Security Ad­
ministration, Social Security Administra­
tion publications. These generally include
electronic filing, as well as magnetic tape,
tape cartridge, diskette, and other media
specifically permitted under the applicable
regulations, procedures, or publications.
*****
(b) Returns required electronically. (1)
If the use of Form 1042–S, Form 1094 se­
ries, Form 1095–B, Form 1095–C, Form
1097-BTC, Form 1098, Form 1098-C,
Form 1098–E, Form 1098-Q, Form 1098–
T, Form 1099 series, Form 3921, Form
3922, Form 5498 series, Form 8027, or
Form W–2G is required by the applicable
regulations or revenue procedures for the
purpose of making an information return,
the information required by the form must
be submitted electronically, except as oth­
erwise provided in paragraph (c) of this

March 13, 2023

section. Returns filed electronically must
be made in accordance with applicable
revenue procedures, publications, forms,
or instructions.
(2) If the use of Form W–2 (Wage and
Tax Statement), Form 499R–2/W–2PR
(Withholding Statement (Puerto Rico)),
Form W–2VI (U.S. Virgin Islands Wage
and Tax Statement), Form W–2GU
(Guam Wage and Tax Statement), or Form
W–2AS (American Samoa Wage and Tax
Statement) is required for the purpose of
making an information return, the infor­
mation required by the form must be sub­
mitted electronically, except as otherwise
provided in paragraph (c) of this section.
Returns described in this paragraph (b)
(2) must be made in accordance with ap­
plicable Social Security Administration
procedures or publications (which may be
obtained from the local office of the Social
Security Administration).
(3) If a person is required to make a
return for the purpose of section 6050I,
and such person is required to file returns
described in paragraphs (b)(1) and (2) of
this section electronically, then such per­
son must also file the information required
by section 6050I electronically. Returns
described in this paragraph (b)(3) must be
made in accordance with applicable IRS
revenue procedures, publications, forms,
instructions, or other guidance, including
postings to the IRS.gov website, as well as
instructions and guidance on the FinCEN.
gov website.
(4) The Commissioner may exempt
certain returns from the electronic require­
ments of this section through revenue pro­
cedures, publications, forms, instructions,
or other guidance, including postings to
the IRS.gov website.
(c) Electronic-filing threshold—(1) In
general. No person is required to file in­
formation returns electronically in a cal­
endar year unless the person is required to
file at least 10 returns during that calendar
year. Persons required to file fewer than
10 returns during the calendar year may
make the returns on the prescribed pa­
per form or, alternatively, electronically
in accordance with paragraph (b) of this
section.
(2) Machine-readable forms. Returns
made on a paper form under paragraph (c)
(1) of this section must be machine-read­
able, as described in paragraph (a)(2) of

March 13, 2023

this section, if applicable revenue proce­
dures provide for a machine-readable pa­
per form.
(3) Special rule for partnerships. Not­
withstanding paragraph (c)(1) of this
section, a partnership with more than
100 partners is required to file its informa­
tion returns covered under paragraph (b)
of this section electronically.
(4) Calculating the number of returns—
(i) Aggregation of returns. In calculating
whether a person is required to file at least
10 returns under paragraph (c)(1) of this
section, all the information returns de­
scribed in paragraphs (b)(1) and (2) of this
section required to be filed during the cal­
endar year are counted in the aggregate.
Neither corrected information returns, in­
formation returns described in paragraph
(b)(3) of this section, nor returns other
than those described in paragraphs (b)(1)
and (2) of this section are taken into ac­
count in calculating whether a person is
required to file at least 10 returns.
(ii) Corrected returns. (A) If an orig­
inal information return covered by para­
graph (b) of this section is required to be
filed electronically, any corrected infor­
mation return corresponding to that origi­
nal return must also be filed electronically.
(B) If an original information return is
permitted to be filed on paper and is filed
on paper, any corrected information return
corresponding to that original return must
be filed on paper.
(5) Examples. The provisions of para­
graphs (c)(3) and (4) of this section are
illustrated by the following examples:

(i) Example 1. During the 2024 calendar year,
Company W, is required to file five Forms 1099INT, Interest Income, and five Forms 1099-DIV,
Dividends and Distributions, for a total of 10 re­
turns covered by paragraphs (b)(1) and (2) of this
section. Because Company W is required to file 10
returns as calculated under paragraph (c)(4) of this
section during the 2024 calendar year, Company W
must file all its 2023 Forms 1099-INT and 1099-DIV
electronically.
(ii) Example 2. Same facts as paragraph (c)(5)(i)
of this section (Example 1), except after electronical­
ly filing its 10 Forms 1099-DIV and 1099-INT, Com­
pany W files two corrected Forms 1099-DIV and
four corrected Forms 1099-INT. Because Company
W electronically filed its original 2023 Forms 1099DIV and 1099-INT, Company W must electron­
ically file its corrected 2023 Forms 1099-DIV and
1099-INT.
(iii) Example 3. Same facts as paragraph (c)(5)(i)
of this section (Example 1), except on May 16, 2024,
Company W received cash in excess of $10,000 and
must file a Form 8300 by May 31, 2024. Because

546

Company W is required to file information returns
covered under paragraphs (b)(1) and (2) of this sec­
tion electronically during the 2024 calendar year,
Company W must also file all its Forms 8300 elec­
tronically during the 2024 calendar year.
(iv) Example 4. Same facts as paragraph (c)(5)
(i) of this section (Example 1), except Company W
is not required to file any Forms 1099-INT during
calendar year 2024. On December 19, 2023, Com­
pany W receives cash in excess of $10,000 and
must file a Form 8300 by January 3, 2024. Because
Company W is not required to file information re­
turns covered under paragraphs (b)(1) and (2) of this
section electronically during the 2024 calendar year,
Company W is not required to file this Form 8300
electronically.
(v) Example 5. During the 2024 calendar year,
Partnership P, a partnership with 15 partners, is
required to file eight Forms 1099-MISC, Miscellaneous Information, and five Forms 1099-INT.
Because Partnership P is required to file at least 10
returns covered by paragraphs (b)(1) and (2) of this
section during the 2024 calendar year, Partnership
P must electronically file all its 2022 Forms 1099MISC and 1099-INT.

(6) Exclusions from electronic-filing
requirements—(i) Waivers. The Commis­
sioner may grant waivers of the require­
ments of this section in cases of undue
hardship. One principal factor in deter­
mining hardship will be the amount, if
any, by which the cost of filing the return
electronically in accordance with this sec­
tion exceeds the cost of filing the return
on paper. A request for a waiver must be
made in accordance with applicable IRS
revenue procedures, publications, forms,
instructions, or other guidance, including
postings to the IRS.gov website. The waiv­
er request will specify the type of filing
(that is, a return required under paragraph
(b) of this section) and the period to which
it applies. For purposes of paragraph (b)
(3) of this section, a waiver granted for a
return under paragraph (b)(1) or (2) will
be deemed to have waived the electron­
ic-filing requirement for any returns re­
quired to be filed under section 6050I.
(ii) Exemptions. The Commissioner
may provide exemptions from the require­
ments of this section to promote effec­
tive and efficient tax administration. An
exemption will be allowed for filers for
whom using the technology required to
file in electronic form conflicts with their
religious beliefs. A submission claiming
an exemption must be made in accordance
with applicable IRS revenue procedures,
publications, forms, instructions, or other
guidance, including postings to the IRS.
gov website.

Bulletin No. 2023–11

(iii) Additional Exclusion. If an em­
ployer is required to make a final return
on Form 941, or a variation thereof, and
expedited filing of Forms W-2, Forms
499R-2/W-2PR, Forms W-2VI, Forms
W-2GU, or Form W-2AS is required, if
the IRS’s systems do not support electron­
ic filing, taxpayers will not be required to
file electronically (see §31.6071(a)-1(a)
(3)(ii) of this chapter).
*****
(g) Applicability date. The rules of
this section apply to information returns
required to be filed during calendar years
beginning after December 31, 2023.
Par. 20. Section 301.6011-3 is amended
by:
a. Revising the section heading.
b. Revising paragraphs (a), (b), and (d)
(1).
c. Redesignating paragraph (d)(5) as
(d)(6) and adding new paragraph (d)(5).
d. Revising newly redesignated para­
graph (d)(6).
e. Revising paragraphs (e) and (f).
The revisions and addition read as
follows:
§301.6011-3 Required use of electronic
form for partnership returns.
(a) Partnership returns required electronically. (1) Except as otherwise pro­
vided in paragraph (b) of this section, a
partnership required to fi

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/agency%3Airs%3A4aea817aad7ea940. Public record. Not legal advice.