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    Updating E-file Registration for 1099s

    As discussed in our post on June 1, 2023, the threshold for the e-file mandate for Forms W2 and 1099s has been reduced to 10 returns (from the previous threshold of 250 returns) effective for the 2023 tax year and subsequent years.

    Practitioners who have already registered to e-file Forms 1099 may need to update their registration with the IRS, as discussed below.

    Practitioners who are not yet registered to e-file Forms 1099 should register to do so now, as discussed in our post on June 1, 2023.

    Background: Years ago, the IRS established the Filing Information Returns Electroncially (FIRE) system to be used to e-file Forms 1099. Practitioners who filed a paper application with the IRS were issued a Transmitter Control Code (TCC).

    Practitioners who submitted their TCC applications prior to September 26, 2021 must complete and submit a new application. Such practitioners have until August 1, 2023 to submit this new application. If they do not submit the new application on or before that date, their current TCC will no longer be available to use to e-file Forms 1099.

    How to submit a new application: The IRS summarizes the process at: https://www.irs.gov/tax-professionals/about-information-returns-ir-application-for-transmitter-control-code-tcc-for-filing-information-returns-electronically-fire#What’s%20New?. Look for the link that says “Log into the IR Application for TCC” on that page.

    In order to file the application, practitioners will need to sign in with an existing ID.me account, or they will need to create a new ID.me account. ID.me is a third-party vendor which the IRS is now requiring practitioners to use to verify their identity when logging into IRS on-line services.

    Once practitioners can sign into the IRS site using ID.me, they can complete the various parts of the new application for the TCC.

    CFS Tax Software Inc. provides an excellent line-by-line guide for completing the TCC application at: https://help.taxtools.com/article/sktq77vuha-applying-for-a-transmitter-control-c. CFS Tax Software Inc. provides payroll and related software for practitioners, and we highly recommend their products.

    For practitioners who obtained their TCC prior to September 26, 2021, if they do not file a new TCC application by August 1, 2023, it appears that they will need to submit a new TCC application in the future to obtain a new TCC if/when they wish to be able to e-file Forms 1099.

    The information provided herein is provided with the understanding that the author and publisher are not engaged in rendering legal, accounting or other professional service. As such, M + O = CPE, Inc. and the author disclaim any responsibility or liability for the information supplied herein or the application of said information.