Introduction Electronic filing of information returns allows you to submit Form 1098 , Forms 1099 , Form 5498 , Form W-2G , and Questionable Form W-4 (QWF) using a modem and telephone line. Extension of Time requests can also be filed electronically for all of these forms except QWF and 8027. The electronic filing of information returns is not associated with the form 1040 electronic filing program.
Who must file electronically?
If you are required to file 250 or more information returns, you must file electronically . The 250-or-more requirement applies separately to each type of form.
For example, if you must file 500 Forms 1098 and 100 Forms 1099-A, you must file Forms 1098 electronically, but you are not required to file Forms 1099-A electronically.
TIP: The IRS encourages you to file electronically or magnetically even though you are filing fewer than 250 returns.
The filing requirements apply separately to original returns and corrected returns. Originals and corrections are not aggregated to determine whether you are required to file electronically or magnetically.
Example, if you file 400 Forms 1098 electronically or magnetically and you are making 75 corrections, your corrections can be filed on paper because the number of corrections for Form 1098 is less than the 250 filing requirement. However, if you were filing 250 or more Form 1098 corrections, they would have to be filed electronically.
Advantages of Filing Electronically
Some of the advantages of filing electronically are as follows:
 | Results available within 1-2 workdays regarding the acceptability of the data transmitted. It is the filer's responsibility to dial back in and check results.
Note: If the file is good, but you do not want the file processed, you must contact IRS/MCC within 10 days from the transmission of your file. |
| Later due dates for electronically filed Forms 1098, 1099 and W-2G than magnetic media or paper. |
| The Form 4804, Transmittal of Information Returns Reported Magnetically is no longer required for electronic filing. |
| Allows more attempts than magnetic media filing to correct bad files within a specific time frame before imposing penalties. |
| On-line availability of transmitter's files for research and tracking purposes. |
| Extended period to test electronic files: November 1 to February 15. Testing is always encouraged. |
