Common Problems and Questions
1. Do I have to file my 1099s electronically?
Any person, including corporations, partnerships, employers, estates and trusts, who files 250 or more Information Returns of any Forms 1042-S, 1097, 1098, 1099, 5498, or W-2G for any calendar year must file their Information Returns electronically.
The 250-or-more requirement applies separately to each type of form. For example, if you must file 500 Forms 1098 and 100 Forms 1099-A, you must file Forms 1098 electronically, but you are not required to file Forms 1099-A electronically. The electronic filing requirement does not apply if you request and receive a hardship waiver.
The filing requirements apply separately to original returns and corrected returns. Originals and corrections are not aggregated to determine whether you are required to file electronically.
Example: if you file 400 Forms 1098 electronically or magnetically and you are making 75 corrections, your corrections can be filed on paper because the number of corrections for Form 1098 is less than the 250 filing requirement. However, if you were filing 250 or more Form 1098 corrections, they would have to be filed electronically.
NOTE: The IRS encourages you to file electronically even if you are filing fewer than 250 returns.
2.When I submit my 1099 forms to the IRS FIRE System, does it automatically generate a summary Form 1096, or do I have to generate one separately?
Transmittal form 1096 is not required of electronic filers.
3. What is the minimum number of returns that I can file electronically?
There is no minimum. You can efile one return electronically or millions. As many returns as desired.
4. What are the deadlines for filing Information Returns elctronically?
File forms 1099, 1098, or W2G by March 31.
File forms, 5498, 5498-ESA, or 5498-SA by June 1.
5. I filed my 1099s electronically but forgot to include a few recipients. What should I do?
First, you will need to create and print a 1099 for each new recipient. Then, you must submit these 1099s to the IRS FIRE System as original returns, not corrections.
In order to avoid the possibility of filing duplicate returns for those recipients who were already reported, the following procedure is highly recommended:
a) Open the 'Client (Filer) Management' module.
b) Click once on the client to be used.
c) Select 'Copy...' from the 'File' menu.
d) Assign a temporary 'Client ID'.
e) Click OK to create a temporary client.
Now, enter the 1099s you originally omitted using the temporary client. Print these returns as usual and file them with IRS as original returns. After these returns have been printed and filed with IRS,
f) Open the original filer's 1099s.
g) Select 'Import -> Another Client's Returns' from the 'File' menu.
h) Select the temporary client's returns.
When done, your original client will contain the new returns. You can now safely delete the temporary client.