There are three steps you need to take to send 1099 electronically to the IRS:
- You need to file Form 4419(Application for Filing Information Returns Electronically) to obtain a Transmitter Control Code (TCC). This allows the IRS and Technical Services Operation to approve and verify your electronic filing submissions. Remember that you cannot electronically file any federal forms without a Transmitter Control Code, so we recommend doing this early on in the life of your business.
- You need to register your business and set up a FIRE account. While this will take less time than securing a TCC, we also recommend setting up this account soon after opening your business. You will not be able to file electronically without a registration and account.
- You need software that will create files in a format that is compatible with the FIRE (Filing Information Returns Electronically) system.
If you’re looking for a way to send 1099 electronically to the IRS, we have a solution. Your best option for this electronic filing, with a FIRE-compatible tool, is our E-File Software from AMS. With our platform software and E-File Direct module, we offer e-file capabilities for an unlimited number of forms for one flat-fee price.
If you don’t have many filing requirements, you might appreciate our other offering. We also partner with a third-party software vendor who will e-file and/or mail recipient forms with service fees based on the number of forms and the number of payees.
Setting up your ability to file federal forms online can be tedious. That said, we recommend that all businesses go through these steps. Online filing often means better deadlines and the ability to get your documents in quickly and efficiently. If you haven’t set up your online filing account or registration, do so as soon as possible – especially if it’s not tax season. Obtaining a Transmitter Control Code and FIRE registration can take time, so don’t leave it until the last minute.
If you have any questions about filing 1099 forms, we have a dedicated FAQ page for those questions. Plus, with AMS, you’ll have professional support when you need it most, especially if you use our W-2/1099 software.