IRS regulations require that employers filing 250 or more wage reports in a tax year
must file such reports on magnetic media, accompanied by prescribed transmittal forms.
IRS can waive this requirement if the employer files Form 8508, (Request for Waiver
from Filing Information Returns on Magnetic Media) — or an equivalent written request
— at least 45 days before the filing date for the return.
Employers who prepare fewer than 250 wage reports in a tax year and employers who
have received an IRS waiver on filing magnetic media reports file prescribed paper
forms. See RM 01105.035 for exhibit of Form 8508.