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Who can and who must participate in IRS FIRE

April 9th, 2013 Erich J. Ruth Leave a comment Go to comments

You must have a transmittal control code or TCC number in order to file information returns electronically to the IRS. To apply for a TCC number, just download, fill out and submit IRS Form 4419. New users are required to submit Form 4419, Application for Filing Information Returns Electronically, to IRS/ECC-MTB at least 15 days before the due date of the return(s) for current year processing. Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned. IRS/ECC-MTB uses the TCC to identify payers/transmitters and to track their files through the processing system. Once a transmitter is approved to file electronically, it is not necessary to reapply unless the payer has discontinued filing electronically for two consecutive years. Payers who know that the assigned TCC will no longer be used, are requested to notify IRS/ECC-MTB so these numbers may be reassigned.

You must have a Employer Identification Number (EIN) to apply for a TCC number and not a Social Security Number (SSN). The EIN is a unique nine-digit number used by businesses that operate in the United States. Any business entity (which includes, sole proprietors, corporations, partnerships, non-profit organizations, trusts and estates and government agencies) may apply for the TCC number which lets you then transmit returns electronically, but not individuals via a SSN.

If you submit less than 250 information returns per calendar year, then you are not required to file electronically. If you submit250 or more information returns, youmust file such returns electronically. This 250 requirement applies separately to each type of form that you are required to file.

Let’s consider two examples. Say you file 400 Forms 1099-MISC and 50 Forms 1099-A. Then you must file all of the Forms 1099-MISC electronically but you are not required to file Forms 1099-A electronically.

Of the 400 1099-MISC forms that you filed electronically, lets say you need to file 75 corrections. You can file those corrections by paper because the number of corrections for Form 1099-MISC is less than the 250 filing requirement. If you filed 250 or more Forms 1099-MISC corrections, then those must be filed electronically.

Form 8508 is a request for waiver from filing information returns electronically.Only the person required to file electronically can file Form 8508. A transmitter cannot file Form 8508 for the payer, unless he or she has a power of attorney. If you have a power of attorney, attach a letter to the Form 8508 stating this fact. If your request is not due to undue hardship, attach a detailed explanation of why you need a waiver.

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Written by: Erich J. Ruth. Published on April 9, 2013.

Erich J. Ruth

Erich J. Ruth provides technical support for National Software which is the parent company for 1099FIRE. 1099FIRE develops and markets a comprehensive range of products that enables any size of business or institution to effectively manage and comply with year-end filing requirements. 1099FIRE is an employee-owned company located in Phoenix, Arizona.

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