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Corrections and replacement files via the IRS FIRE System

November 8th, 2013 No comments

You submitted a file to the IRS FIRE System.  The file contained data about a specific information return.

The file came back as BAD.  In this case, you need to submit a replacement file.  If you submit the replacement file and that file as well is BAD, then you want to submit another replacement file and just keep submitting replacement files until you get a GOOD file status.  You can log into the IRS FIRE System, click on Check File Status, click on the BAD file and you will see the error messages associated with this file.  Visit 1099fire.com and the site lists the errors associated with 1099, 1042-S, 8027 and 8955-SSA file submission.

A correction, in contrast, is when you submit a file and it comes back as GOOD.  But later you find out that the datafile that you submitted contains erroneous information.  In this situation, you need to put submit a corrected datafile.

If you find out that the data file contains errorneous information within the 10-12 days after you submitted your file, then call the IRS and ask them to delete the file.  Submitting a file and getting a file status of GOOD means that the file is GOOD but not released.  It takes anywhere from 10 to 12 days before your data file is released.  If you call the IRS within that 10-12 day window, you can ask them to delete the file and they will.  You then submit a new original file with the correct data.  IRS FIRE help can be reached toll-free 866-455-7438.

There are two types of corrections, a one-step and a two-step correction.  A one-step correction applies when you have new payment amounts for the payee or recepient.  A two-step correction applies when the original file you submitted had a missing or incorrect TIN for the payee, an incorrect payee name or the wrong type of return was indicated.  In this two-step case, you first create a file which blanks out the original file and money amounts.  You then submit a 2nd file which has the correct information.

You want to prepare and submit a correction as soon as you find out that you submitted erroneous data.  The IRS FIRE System is open most the year.

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