1099Fire™ has an excellent built-in Review which will double-check the structure of the fire.txt file and other common errors.  The Review button is next to the Create button.  Click on the Review button and correct any potential errors that the software finds before submitting to the IRS.

Common Errors and Solutions

Question: I can't find or attain the TIN (SSN/EIN) number for a particular person or business.  What do I do?

Solution: The Publication 1220 (Specifications for Filing Forms 1098, 1099, 5498, and W-2G Electronically) states on page 47 at Field Position 12-20 that "If the TIN is not available, enter blanks" for the Payee B Record. A valid TIN must always be in the "Payer A Record" since it is a required field.

What you need to do is enter 9-blank spaces in the software and create the fire.txt file.  When you upload the file to the IRS FIRE System, it will appear as BAD and you will get the following error:

'B' record(s) contains missing/invalid Taxpayer Identification Numbers (TIN) in positions. The TIN must be a valid 9-digit number. Do not enter blanks, hyphens, or alpha characters.

Send an e-mail to fire@irs.gov specifying your name, TCC number, file name that was uploaded and stating that you are unable to attain the TIN number. Ask them to override the BAD file as GOOD and they will.

Question: 100 Percent of your 1099-OID ‘B’ records contain Tax Withheld Amounts, which appear to be excessive in relation to the Income Amounts reported.

Solution: Q4 on the OID has to be less than Q1.  Adjust the amount in Q4 and resubmit.

The Specific Instructions for Form 1099-OID states "that financial institutions, broker, trustees, middleman, etc. are required to report in Box 1 the OID on the obligation for the part of the year it was owned by the record holder" and Box 4, Federal income Tax Withheld is for backup withholding. The Internal Revenue Service does not provide threshold or percentage levels.

If its true and correct, send a statement by e-mail to fire@irs.gov that the amount is true and correct under penalty of perjury.  Specify your name, the TCC number and file name that was uploaded and ask the IRS to override the BAD file as GOOD.

Question: 'T' record appears to have an incorrect tax year in positions 2-5. If your file is the current tax year, then position 6 of the 'T' record must be set to a blank and positions 2-5 of your 'T', 'A', and 'B' record(s) must contain the current tax year. If your file is a prior tax year, then position 6 of the 'T' record must be set to a 'P' and positions 2-5 of your 'T', 'A', and 'B' record(s) must contain the prior tax year. (You cannot mix tax years in a file.)

Solution: This is a common error but one that the software should flag.  If you are submitting an information return in say March of 2009 for the 2008 year, then the payment year is 2008 and that is the current payment year (not a previous year).  If you are filing a 2007, 2006 or so forth return, then that is a previous year. Dont enter 2009 as the payment year until 2010.

We seek feedback on any aspect of our software.  Please send an e-mail to info@1099fire.com with any comments you might have.