Sponsor seeks electronic filing parity with IRS; Department of Revenue backs fraud prevention

Representative Mike McGurrell presented House Bill 19 19 to bring Missouri withholding filing thresholds into parity with IRS practice by requiring employers with 10 or more employees to file electronically. He said the change would be more secure and convenient and questioned why the state would continue to allow paper filings when the IRS requires electronic filing for the same employers.

Zach White, legislative director for the Missouri Department of Revenue, testified in support, saying the department had this proposal approved by the governor’s office and that electronic filing improves fraud checks. White told the committee that paper filings require more manual review and cited recent cases where the department stopped fraudulent claims; he said electronic submission enables better cross-checks with employer-reported W-2s and other data.

Committee members asked about religious exemptions and older or smaller businesses' ability to comply. White said waivers or accommodations exist in some states and the department is prepared to help businesses that need assistance, and he referenced a 2-D barcode process that eases submission of certain paper-originated forms. Lisa Panett (Armor Vine) testified in opposition, arguing the bill removes an existing filing choice for businesses and expressing concern about data breaches; she urged retaining a paper option for some employers.

The hearing concluded without a recorded committee vote on HB 19 19 in this transcript segment.