1099 Formatting Errors and Solutions
Electronic filing specifications of IRS Form 1099 are published in
Publication 1220
which is titled "Specifications for Electronic Filing
of Form 1097, 1098, 1099, 3921, 3922, 5498, and W-2G". Here we list common
problems (with solutions) encountered when electronically filing
1099 forms to the IRS. These problems may result in IRS/ECC-MTB requesting
replacement files.
Wrong file
- Your file does not contain a complete set of ‘T’, ‘A’, ‘B’, ‘C’ and ‘F’ records or the data is not information returns.
You most likely uploaded the wrong file to the IRS. Did you uploaded the excel file (.xls or .xlsx)? Or the data file (.ten)?
An excel or data file is unreadable by the IRS. You can only upload the fire.txt file which the software creates.
The first line of the fire.txt file is the T record or transmitter information, the second line is the A record or payer
information, then there are many B records for each recipient and the C-record is the 1096 or totals.
T-record
- ‘T’ record appears to have an incorrect tax year in positions 2-5.
Tax season is a year behind the calendar year. If its January 1, 2000 (which is the first day of the calendar
year), then the current tax year is 1999. 1998 is consider a prior tax year.
A-record
- ‘A’ record(s) contains missing/invalid Taxpayer Identification Numbers (TIN) in positions 12-20.
Do not enter blanks, hyphens, or alpha characters. Publication 1220 states for 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. You must find the TIN for the “Payer A Record” but can enter number blank spaces for a
missing TIN for the “Payee B Record”.
Corrections
- You have identified your file as a correction; however, the data is not coded with a ‘G’ or ‘C’ in position 6 of the ‘B’ record(s).
- Missing Correction Indicator in Payee "B" Record.
By putting a check in the ‘Corrected’ box at the top of a 1099 form, the software will automatically put a ‘G’ or ‘C’
(depending on which type of correction you are filing) in the 6th position of the payee B record.
The above error is telling you not to mix original payer B records with corrected payer B records. If you are filing a return
for a payer A, then all of the payer B records must be corrections or originals, but not a combination of corrections and originals.
If you are filing corrections, separate those into a unique file and upload.
Test Indicator
- Incorrect use of Test Indicator
Test files are submitted through the site fire.test.irs.gov; when you create the fire.txt file, you are asked if this is
a test file (Y/N). The software then add the Test Indicator "T" in Field Position 28 of the "T" record to show this is a test file. If this test file is submitted to the fire.irs.gov site, you will receive this error.
Please e-mail technical support at support@1099fire.com with
any questions related to IRS Form 8027.
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