CORPUS CHRISTI, TX / ACCESSWIRE / January 24, 2024 / In a recent update, the IRS made a significant change that affects all users of the Filing Information Returns Electronically (FIRE) system. Legacy Transmitter Control Codes (TCCs) are no longer valid. In short, this means that millions of tax professionals may be unable to e-file 1099 series forms just prior to the January 31st deadline.

Legacy TCCs No Longer Valid - Implications

The transition to new TCCs is meant to enhance security and functionality for IRS systems. Users must now apply for new TCCs through the Information Returns (IR) application, ensuring compliance with Publication 1220 standards for various 1099 forms.

Users who have not yet completed their IR TCC application are unable to submit filings using the FIRE system, as all Legacy TCCs are now invalid. If a user attempts to file with an invalid TCC, they'll run into the following error message: ‘Information provided is not correct.' The IRS has stated that they cannot provide additional information as their helpdesks are experiencing high call volumes.

Users can attempt to complete their IR-TCC application in time for the January 31st deadline, but this can be a long process and is not recommended. An alternative solution is to work with a trusted 1099 software vendor that can complete filings on their behalf.

Deadlines

Since the Form 1099-NEC e-filing deadline is a week away, anyone who did not complete their IR-TCC should find an alternate solution as soon as possible. Late filings can lead to hefty penalties of up to $310 per form.

January 31st is also the deadline to furnish recipient copies, so there's a huge time crunch from now until the end of the month for all 1099 filers.

About BoomTax

Based in Corpus Christi, Texas, BoomTax is a top provider of tax compliance solutions, aimed at simplifying and optimizing the tax reporting process for businesses. Featuring a user-friendly interface, BoomTax supports an extensive variety of forms, including the Form 1099 series (MISC, DIV, INT, NEC), W-2, 1095-B, 1095-C, and California Pay Data Reporting.

BoomTax provides customized solutions for each of these forms, assisting companies in fulfilling their compliance requirements with accuracy and efficiency. Through the integration of cutting-edge technology and outstanding customer support, BoomTax is committed to easing the tax reporting process for businesses, regardless of their size.

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SOURCE: BoomTax