The IRS has made several changes regarding 1099 filing for transactions that closed in 2023 and are reportable in 2024. For Advocus member agents who are responsible for reporting these transactions, steps must be taken immediately to comply with these new requirements. The IRS's FIRE (File Information Returns Electronically) system has been replaced by the IRIS (Information Returns Intake System). For details, see https://www.irs.gov/filing/e-file-forms-1099-with-iris The most significant change regards filing these returns electronically. Previously, electronic reporting was required only when the number of 1099 returns equaled 250 or more. That threshold has now been lowered to filings of 10 or more, requiring electronic filing for most filers.

The process for filing electronically has also changed and requires several steps to establish an account with the IRS:

1. If no account has been previously created, create an account using ID.me.

2. Obtain a Transmitter Control Code (TCC). If you already have a TCC, you must reapply for one prior to filing using IRIS. The application process may take at least 45 days to complete.

If filing 100 or fewer returns 1099-S returns, the CSV (Comma Separated Values) template that is available upon logging into the IRIS website must be used. For filings that involve more than 100 returns, the IRS's A2A (Application to Application) method must be used.

Members who are responsible for completing the 1099-S reporting for their transactions should apply for their TCC as soon as possible to avoid any delays in filing in 2024.

REsource users, do not use the 1099 application that is part of REsource since that application has not been updated to incorporate these changes.

Update 02/05/2024:

The foregoing changes apply only to filing the 1099-S returns with the IRS; they do not affect the requirement of providing the sellers with their copy of the paper form 1099-S, which must be provided to them by February 15.

For those transmitters/filers who must file their 1099-S returns with the IRS electronically, if you have applied for, but not received, your Transmitter Control Code, it would be prudent to file form 8809 Extension of Time to File Information Returns before the March 31 filing deadline.

Update 02/22/2024: REsource Users Filing up to 100 1099-S Returns

We added an application (instructions below) to REsource to create the .csv (Comma Separated Values) file required for filing under the new IRIS system.

1. Verify reporting information for all files:

• Sellers' names are correctly spelled.
• Addresses are complete. 
• "Relationship of 2nd Person to first" is set to "Wife" or "Husband" if sellers are spouses.
• Taxpayer IDs (SSN or EIN) are correctly entered.
• Gross sale price among sellers is allocated so 100% of the sales price is accounted for if there are multiple sellers.
• "Transferor is a foreign person" box is checked if seller is a foreign person, trust, estate, etc.

2. For sellers with foreign (non-US) addresses, follow these procedures:

• Check this box, “Is Address Foreign.”
• If a forwarding address is to be use as the seller's address for 1099 reporting, select "Forwarding Address," enter the information, then check BOTH checkboxes, "Is Forwarding Address Foreign" and "Use Forwarding Address for 1099."
• When entering the foreign address information, follow this procedure to have that address correctly entered into the IRIS .csv file:

3. To create CSV file:

• In the "Utilities" menu in REsource, select "Advocus IRIS Processing" from menu. View image.
• Make sure beginning and ending dates are correctly set to retrieve all records for the reporting year.
• Click "Retrieve Records." View image.
• If there are any errors in the information, make corrections in REsource, close "Advocus IRIS Processing" application, and re-run it.
• If satisfied that all information is correct, click "Export to CSV." 
• When prompted, select a location to save the CSV file. When saved, a message box will appear indicating the file has been created, which will then close the application.

NOTES: 

• If Excel is installed on your computer, the CSV file will automatically open in Excel when you double-click the CSV file. 
• DO NOT save the file in Excel as that might add Excel metadata to the file and cause problems when uploading the CSV file into the IRIS system. 
• Contact the IRS if you receive an error message after following the above instructions. 
• The IRS may reject the filing for unknown reasons. If you experience this, contact the IRS Helpline, 866.937.4130

Questions? Contact Us.

[Updated: 2.22.2024]