Department of Revenue to require electronic filing for W-2

The Iowa Department of Revenue has taken the first formal step to put in place a new rule requiring the electronic filing of W-2 and 1099 forms. A notice of intended action was filed July 6. Under the proposed rule changes, Iowa will now require W-2 and 1099 forms be filed electronically with the department of revenue on an annual basis.

The Internal Revenue Service (IRS) already requires withholding agents to electronically file W-2s at the federal level, and with these amendments Iowa is conforming with federal practice. Iowa joins most other states that have withholding requirements.

For tax year 2016, only withholding agents with at least 50 employees are required to electronically file W-2 and 1099 forms with the department of revenue. For tax year 2017, all withholding agents will be required to electronically file W-2 and 1099 forms with the department of revenue. In addition, annual verified summary of payment reports will be due on or before the last day of January following the tax year. A withholding agent may request in writing an extension to electronically file due to hardship. You may make written comments on the proposed amendments on or before July 26, 2016. Written comments on the proposed amendments should be directed by mail to the Policy Section, Policy and Communications Division, Department of Revenue, Hoover State Office Building, P.O. Box 10457, Des Moines, Iowa 50306-0457; or by e-mail to theresa.dvorak@iowa.gov