1099Fire

The Taxpayer Advocate Service is an independent organization within the IRS. It helps taxpayers that have economic difficulties with housing, transportation and food. The service is also available to those who do not believe that the an IRS system or procedure is not operating as it should. It is a source of taxpayer guidance and it takes a variety of taxpayer complaints. Essentially it is the voice of the consumer at the IRS. Here is some more information about the Taxpayer Advocate Service as described by the IRS:

The Taxpayer Advocate Service is an independent organization within the Internal Revenue Service. TAS helps taxpayers who are experiencing economic harm such as not being able to provide necessities like housing, transportation, or food, taxpayers who are seeking help in resolving problems with the IRS, and those who believe an IRS system or procedure is not working as it should. Here are seven things every taxpayer should know about TAS.

1. The Taxpayer Advocate Service is your voice at the IRS.
2. TAS service is free, confidential, and tailored to meet your needs.
3. You may be eligible for TAS help if you have tried to resolve your tax problem through normal IRS channels and have gotten nowhere, or you believe an IRS procedure just isn’t working as it should.
4. TAS helps taxpayers whose problems are causing financial difficulty or significant cost, including the cost of professional representation. This includes businesses as well as individuals.
5. TAS employees know the IRS and how to navigate it. If you qualify for TAS help, your case will be assigned to an advocate who will listen to your problem, help you understand what needs to be done to resolve it, and stay with you every step of the way until your problem is resolved.
6. There is at least one local taxpayer advocate office in every state, the District of Columbia, and Puerto Rico. You can call your local advocate, whose number is in your phone book, in Pub. 1546, Taxpayer Advocate Service — Your Voice at the IRS, and on the website at www.irs.gov/advocate. You can also call toll-free number at 1-877-777-4778 or TTY/TDD 1-800-829-4059
7. You can learn about your rights and responsibilities as a taxpayer by visiting the TAS online tax toolkit at www.taxtoolkit.irs.gov. You can get updates on hot tax topics by visiting the TAS YouTube channel at www.youtube.com/tasnta and the TAS Facebook page at http://www.facebook.com/YourVoiceAtIRS, or by following TAS tweets at http://twitter.com/YourVoiceatIRS.

When you first log into the IRS FIRE system, you create a password and PIN (personal identification number). The password is something you create and must be 8 alpha/numerics, containing at least 1 uppercase, 1 lowercase and 1 numeric.

If you forget your password or PIN, you can call IRS/ECC-MTB toll-free at 1-866-455-7438 for assistance to creating a new password and/or PIN.

The FIRE system periodically requires users to change their password (usually once a year).

The Amount Codes used in the “A” Record MUST correspond with the payment amount fields used in the “B” Records. For example, if the “B” Records show payment amounts in Payment Amount fields 2, 4 and 7, then the “A” record must correspond with 2, 4, and 7 in the Amount Codes field.

For Form 1099-R, there must be valid Distribution Code(s) in positions 545-546 of the Payee “B” Record. The 1099FIRE software has a list of valid codes (and combinations). If only one distribution code is required, it must be entered in position 545 and position 546 must be blank. A blank in position 545 is not acceptable.

Entered TINS must consist of nine numerics only.

This error should not arise in the 1099FIRE software. The software will double check that each TIN is comprised of nine digits only. Two common errors that are often caught during the review of a file are (1) that the uppercase letter O is used instead of a 0 (zero) and (2) that the lower case letter l is used instead of the number 1.

When sending a test file, position 28 of the Transmitter “T” record must contain a “T”. Do not populate this field with a “T” if sending an original, replacement or correction field.

When you log into the IRS FIRE system, you will be asked whether you are submitting an original, replacement, correction or test file. If you select correction, then the 1099 software also has to identify the file as a correction, otherwise you will receive this error.

The software will identify a Payee “B” record as a correction when you put a check in the box “Corrected” at the top of the form.

The “C” Record is a summary record for a type of return for a given payer. IRS compares the total number of payees and payment amounts in the “B” records with totals in the “C” Records. The two totals must agree.

Do NOT enter negative amounts except when reporting Forms 1099-B or 1099-Q. Money amounts must be all numeric, right-justified and zero(0) fill unused positions. Do not use blanks.

The Hiring Incentives to Restore Employment (HIRE) Act exempts employers from the employer’s share of social security tax (referred to as the payroll tax exemption) on wages paid to qualified employees from March 19, 2010, through December 31, 2010. For employers to report the amount of wages and tips covered by the payroll tax exemption, we added a new code for box 12, Code CC, for HIRE exempt wages and tips. The total of code CC is reported in new box 12b on Form W-3. The total of deferred compensation amounts, previously reported in box 12, is now reported in new box 12a on Form W-3.

Employers will be required to report on annual Forms W-2 the aggregate cost of group health plan benefits (excluding FSA, HSA, or Archer MSA contributions, or the cost of long term care, and certain other excepted benefits) provided to employees for taxable years beginning on or after January 1, 2011 (i.e., Forms W-2 issued in 2012 for 2011 wages, and issued thereafter for subsequent years).

We are waiting for IRS guidance on some of the language in the bill. Further details will be made available as we get further clarification from the IRS.