What is the required number of combined Forms 1040, 1040-NR, and 1041 returns that paid tax return preparers must file electronically in a year?

The requirement for paid tax return preparers to file electronically is tied to the number of returns they submit within a calendar year. Specifically, if a preparer files 11 or more Forms 1040, 1040-NR, or 1041, they are mandated to file these forms electronically. This rule is in place to modernize the filing process, enhance accuracy, and reduce the administrative burden on the IRS.

This electronic filing requirement applies to a combined total of these three types of forms. Therefore, a preparer who reaches the threshold of 11 combined returns must use e-filing methods for all subsequent filings. By requiring e-filing for a larger volume of returns, the IRS aims to streamline operations and improve data management.