Certain groups of IRS information returns must be filed electronically with the IRS if the total number to be filed annually exceeds 250 forms. The penalty is $50 a year for each form over 250 forms not filed electronically. For example, 350 forms minus 250 forms equals 100 forms X $50 for each total civil penalty assessment of $5,000.
The electronic filing requirement is for each type of information forms. For example, if the taxpayer has 225 Form 1099 MISC to be filed, then these 1099 MISC forms must be filed electronically.
If the same taxpayer also has 100 Forms 1099 INT, the 1099 INT Forms do not have to be filed electronically. They can be paper filed.
Among the most common information forms that should be filed electronically are: