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Illinois 1099-K State Filing Mandate

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In tax year 2019, Illinois withdrew from the CF/SF program and created its own electronic filing system for Form 1099-K. This means businesses must now follow Illinois-specific rules for transmitting and receiving data.

Illinois issued Bulletin 2020-14, which requires any Form 1099-K issued to a payee with an Illinois address to be filed through the Illinois FIRE Electronic Transmission Program. The annual filing deadline is March 31.

How to File Form 1099-K in Illinois

The file you send to Illinois is similar to the IRS FIRE file, but not identical. Transmission must be completed through the Illinois Department of Revenue’s E-Services website using HTTPS protocol and the POST method. Illinois also provides a free upload and download utility for transmitting files.

  1. Upload your file to the Illinois gateway.

  2. Wait for processing.

  3. Download the acknowledgment file to confirm whether the transmission was accepted or rejected.

Quirks with the Illinois FIRE System

The Illinois FIRE system has specific requirements for recipient names:

  • If the name is 40 characters or fewer, or more than 42 characters, the file will be accepted.

  • If the name is exactly 41 characters, the system will reject the file.

  • A continuation of a name cannot be just 1 character long.

Our software has been modified to warn users if a recipient name is 41 characters in length, helping you avoid rejections.

Filing Deadline

Form 1099-K must be submitted to the Illinois Department of Revenue no later than March 31 of the year following the reporting year. If the due date falls on a weekend or state holiday, the deadline shifts to the next business day.

Specifications

Our software follows the official filing specifications published by Illinois for W-2G and 1099 electronic filing.

Outsourcing Solutions

Let our experienced staff electronically file Form 1099-K to Illinois on your behalf. We provide complete outsourcing solutions at competitive pricing. Call our office at (480) 706-6474 for assistance.

Stay compliant, reduce administrative costs, and know the filing will be done right.

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