FOR STEP-BY-STEP DETAILS ON HOW TO USE THE 1099/1098 SYSTEM CLICK HERE
Introduction Electronic filing of information returns allows you to submit Forms 1098 , Forms 1099 , Forms 5498 ,
and Form W-2G.
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:
