On July 1, President Trump signed the IRS reform bill, H.R. 3151, the Taxpayer First Act  (the Act), which, as part of a modernization of IRS information technology systems, lowers the threshold for mandating the electronic filing of information returns and creates an online Form 1099 filing system.

House Ways and Means Committee Chairman Richard Neal (D-MA) released a statement saying, in part, "This signing is the culmination of a lengthy, bipartisan process undertaken by the Ways and Means Committee to implement pro-taxpayer reforms at the IRS for the first time in more than 20 years. New protections for low-income taxpayers, practical enforcement reforms, and upgraded assistance for taxpayers and small businesses will all now go into place."

• Online Form 1099 electronic filing system. By January 1, 2023, the IRS is required to make available a website that would permit taxpayers to prepare and file Forms 1099. Like the Social Security Administration's Business Services Online for Forms W-2, the system will also make available copies of Forms 1099 for distribution to recipients and provide a record of the Forms 1099 filed.
• Lower threshold for mandatory electronic filing of Forms W-2 and 1099. The threshold for mandatory electronic filing of Forms W-2 and 1099, currently required when there are 250 or more forms, decreases to 100 forms effective for the 2021 calendar year and to 10 forms for calendar years after 2021. A waiver from the electronic filing requirement will apply to areas without internet access.

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