Who Can Participate in FIRE
Any filer of Information Returns may file their returns electronically. However, any person, including corporations, partnerships, employers, estates and trusts, who files 250 or more Forms 1097, 1042-S, 1098, 1099, 3921, 3922, 5498, 8027, or W-2G for any calendar year must file their Information Returns electronically.
The 250 or more requirement applies separately to each type of form. For example, if you 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. The electronic requirement does not apply if you request and receive a hardship waiver.
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.
Example: If you file 400 Forms 1098 electronically 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 are filing 250 or more Form 1098 corrections, they must be filed electronically.
The IRS encourages you to file electronically even if you are filing fewer than 250 returns.