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 The IRS's FIRE (File Information Returns Electronically) system has been replaced by the IRIS (Information Returns Intake System).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
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