If you file 10 or more information returns in a year, the IRS requires you to e-file all of them, and Forms W-2 count toward that total. For most mid-market employers, that settles the question.
The IRS has built its operations around electronic filing. It processed more than 220 million returns and other forms electronically in fiscal year 2025, roughly 82% of all filings (IRS Data Book, Publication 55-B).
Do I have to e-file my W-2s and 1099s?
Quick answer
Most employers do. If your total number of information returns for the year reaches 10, you must e-file all of them. The count combines Forms W-2, 1099, 1095-C, and most other information return types. Corrected returns are counted separately, and employment tax returns such as Form 941 don't count toward the 10.
Who is required to e-file?
The requirement is based on the total number of returns you file, not the number of any one form. The IRS has applied the 10-return threshold starting with tax year 2023, and it aggregates almost all information return types: Forms 1042-S, 1094 and 1095 series, 1097-BTC, 1098 series, 1099 series, 3921, 3922, 5498 series, 8027, W-2G, and W-2. If the combined total is 10 or more, all of those returns must be filed electronically.
The IRS does offer a waiver on Form 8508, but the request has to reach the IRS at least 45 days before the due date. Plan for e-filing, not for the waiver.
Why e-file even when paper is still an option for the smallest filers?
- Faster processing. No mail delays between your payroll close and the agency's acceptance.
- Fewer rejections. Built-in validation catches errors before the agency does, which cuts corrections and penalty exposure.
- Proof of submission. Electronic filing gives you a confirmation record instead of a mail receipt.
- One workflow for several forms. Greenshades Year-End Forms handles W-2s, 1099s, and ACA forms from the same data.
Where to e-file: federal agencies
At the federal level, nearly every form can be submitted electronically through an IRS or SSA system, or through an approved third-party provider. Greenshades is an IRS-approved Electronic Return Originator, Software Developer, and Transmitter, and handles tax filing for W-2s, 1099s, and ACA forms.
Note: State and local e-file systems vary. Check your jurisdiction's Department of Revenue or Labor website for specifics.
E-filing to the Social Security Administration (SSA)
Employers must furnish a W-2 to every employee and former employee who received payments for services during the tax year. Form W-3 (Transmittal of Wage and Tax Statements) accompanies Copy A of the W-2s filed with the SSA. For tax year 2026, both the employee copies and the SSA filing are due February 1, 2027, because January 31 falls on a Sunday.
- What can be filed: Forms W-2 and W-3
- How to file: Through Business Services Online (BSO)
Tip: When you e-file, you don't create a separate W-3. The electronic file includes an RT record that serves as the W-3.
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Bookmark Your Copy →E-filing to the Internal Revenue Service (IRS)
Information returns
For tax year 2026, the IRS accepts electronic information returns through one system: the Information Returns Intake System (IRIS).
| System | How you file | Status for tax year 2026 |
|---|---|---|
| IRIS (Information Returns Intake System) | Through the free IRIS Taxpayer Portal (up to 100 returns at a time, with an IRIS TCC) or through the Application-to-Application (A2A) interface using software | The only IRS system for electronic information returns after January 1, 2027, including current-year returns, prior-year returns, and corrections |
| FIRE (Filing Information Returns Electronically) | Compatible payroll or tax software, or a third-party transmitter, with a FIRE TCC | Retiring. The last day to file through FIRE is November 19, 2026 |
Transition note: FIRE is not available for filing season 2027. The IRS has stopped accepting new FIRE TCC applications, so filers who used FIRE need an IRIS TCC before they file tax year 2026 returns.
What is a TCC?
A Transmitter Control Code (TCC) is a unique ID issued by the IRS that identifies approved transmitters of electronic information returns, such as W-2Gs and 1099s. An IRIS TCC can only be used for IRIS. Greenshades is an IRS-approved transmitter.
Affordable Care Act (ACA) forms
The ACA requires insurers, self-insured employers, and large organizations offering health coverage to report individuals' health insurance information to the IRS.
- What to file: Forms 1094-B, 1095-B, 1094-C, and 1095-C
- How to file: Through the Affordable Care Act Information Return (AIR) system (TCC required)
Employment tax forms
Forms 940, 941, 943, 944, and 945 are employment tax returns, not information returns, so they don't count toward the 10-return threshold. The IRS accepts all of them electronically.
- Form 940: Annual Federal Unemployment (FUTA) Tax Return
- Form 941: Employer's Quarterly Federal Tax Return
- Forms 943, 944, and 945: Specialized employment and withholding returns
See the IRS's employment tax e-file options.
E-filing to state and local agencies
State requirements for SUTA/SUI, SDI, and state W-2 filing vary by state and by agency, including the number of records at which e-filing becomes required. Check your state's Department of Revenue or Labor website to confirm yours.
The IRS shares certain 1099 forms directly with participating states, which reduces duplicate submissions. The Combined Federal/State Filing (CF/SF) Program covers reporting to participating states.
Local requirements also vary by jurisdiction. Check with your local departments for the most current rules.
FAQ
How many returns trigger the e-file requirement?
Ten. If you file 10 or more information returns in a year, you must file all of them electronically. The requirement has applied since tax year 2023.
Do W-2s count toward the 10-return threshold?
Yes. The IRS aggregates Forms W-2 with Forms 1099, 1095-C, and most other information return types. Corrected returns are treated separately and are not included in the count.
Can I get a waiver from e-filing?
You can request one on Form 8508. The request must be submitted to the IRS at least 45 days before the due date of the return.
Is FIRE still available for tax year 2026 returns?
No. The IRS is retiring FIRE, and the last day to file through it is November 19, 2026. After January 1, 2027, IRIS is the only IRS electronic filing system for these returns.
Do Forms 940 and 941 count toward the 10-return threshold?
No. The threshold covers information returns such as W-2s and 1099s. Forms 940, 941, 943, 944, and 945 are employment tax returns, and the IRS accepts all of them electronically.
Note: This information is for informational purposes only and does not constitute formal tax, legal, or compliance advice. Always consult with qualified tax advisors, legal counsel, and your organization's internal teams for guidance specific to your situation. Additional regulations may apply. For the most accurate and up-to-date information, refer to official government resources and regulatory agencies.
