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Filing 1099 Forms Electronically

ProPay creates 1099-MISC files in the IRS-required format for electronic filing through the Filing Information Returns Electronically (FIRE) system.

Overview

To file electronically, you must have software that creates files in the proper format. ProPay creates 1099-MISC files according to IRS specifications. Scanned or PDF copies are not accepted.

IRS FIRE System: https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire

Before You Begin

You must complete these steps before you can transmit 1099 forms:

  1. Create an account in the IRS FIRE Production System.
  2. Apply for and receive a Transmitter Control Code (TCC).
  3. Enter your TCC in ProPay's system setup.

Create Your IRS Fire Account

  1. Go to the IRS FIRE Production System login page:
    1. Click Create New Account.
    2. Complete the registration form with your business information.
    3. Follow the IRS instructions to verify your identity and activate your account.

    Apply for a Transmitter Control Code

    A Transmitter Control Code (TCC) is required to transmit information returns through the FIRE system.

    Submit Form 4419

    1. Log in to your IRS FIRE account.
    2. Go to the TCC application page:
      1. Complete Form 4419 (Application for Filing Information Returns Electronically).
      2. Submit the form electronically.
      3. Wait for the IRS to review and approve your application.

      Processing time: The IRS typically processes TCC applications within 45 days.

      Enter Your Tcc in ProPay

      Once you receive your Transmitter Control Code from the IRS:

      1. Click Client Functions > Set-Up > System Setup > Electronic.
      2. Locate the 1099 E-File Parameters section.
      3. Enter your Transmitter Control Code (TCC).
      4. Click Save.

      Generate Your 1099-misc E-file

      1. Complete all 1099 entries for the tax year in ProPay.
      2. Click Client Functions > Electronic Processing > 1099 Filing.
      3. Select the tax year and form type (1099-MISC).
      4. Click Create E-File.
      5. ProPay generates an IRS-compliant file and saves it to your computer.

      Transmit to the IRS

      Each time you transmit a 1099-MISC file, you must log in to the IRS FIRE system:

      1. Go to the IRS FIRE login page:
        1. Enter your credentials:
          • Transmitter Control Code (TCC)
          • Taxpayer Identification Number (TIN)
          1. Go to the file upload section.
          2. Select the 1099-MISC file created by ProPay.
          3. Upload the file.
          4. Review the file summary for accuracy.
          5. Submit the file to the IRS.

          After Transmission

          1. Wait for the IRS acknowledgement (usually within 24-48 hours).
          2. Check your FIRE account for the acceptance or rejection status.
          3. If accepted, retain the acknowledgement number for your records.
          4. If rejected, review the error report, make corrections in ProPay, and resubmit.

          File Copies for Recipients

          After the IRS accepts your e-file:

          1. Print or email Copy B to each recipient by January 31.
          2. Retain Copy C for your records.

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