IRS Filing Information Returns Electronically (FIRE) – 1099s

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  • IRS Filing Information Returns Electronically (FIRE) – 1099s

    Posted by Ashton Blocker on August 10, 2023 at 11:24 am

    Good afternoon,

    Our organization is looking ahead to January 2024, when we are going to have to file 1099s for Tax Year 2023. It has come to our attention that the regulations for filing 1099s (specifically, I’m thinking of our 1099-NEC forms) have been updated to require filers who file 10 or more information returns, to file electronically. Our organization is a small/mid-size water & sewer utility, so we’ve typically only needed to file around 20-40 1099s each year, which was well under the old 250 information returns threshold requiring e-file. So, historically we’ve just printed and mailed 1099s to the Department of Treasury.

    With that in mind, we’ve learned that the IRS has created the “FIRE” (Filing Information Returns Electronically) online system to help filers submit information return data electronically.

    We recently just completed application for the FIRE online system and have been issued a Transmitter Control Code (TCC).

    We would like to test the functionality of the FIRE system prior to January 2024 to make sure our file specs are going to work.

    My question to the Dynamics GP community is whether the GP software can generate the file for upload to FIRE based on the file specs required by the IRS? Or do we need to be looking at getting an outside software to be able to generate compatible files for this purpose?

    My understanding is that the FIRE file format is .txt and each record must be a fixed length of 750 positions.

    Are we going down the right path pursuing this FIRE account? We are looking for the best combination of cost and degree of difficulty in getting the information reported electronically.

    Thanks for your feedback on this topic!

    Ashton “Biff” Blocker

    Ashton Blocker replied 11 months ago 2 Members · 4 Replies
  • 4 Replies
  • Kerry Hataley

    Organizer
    August 10, 2023 at 6:46 pm
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    I have forwarded this question to @TerryHeley at Microsoft…

    We should have a response in a couple of days.

  • Ashton Blocker

    Member
    August 16, 2023 at 3:34 pm
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    Just circling back to this post to provide a “bump”.

    Thanks,
    Ashton “Biff” Blocker

  • Kerry Hataley

    Organizer
    August 21, 2023 at 11:02 am
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    Hi Ashton,

    The short answer is NO, it doesn’t do electronic 1099’s. But in 18.6 they are doing a feature in the October release where now all 1099 forms can be printed with lines, like we did the NEC form last year.

    But here is a BLOG from Microsoft explaining all the changes. I received this from Terry Heley #Microsoft.

    https://community.dynamics.com/blogs/post/?postid=2246f6af-3f2a-4faf-9da5-544613326c20

  • Ashton Blocker

    Member
    August 22, 2023 at 10:56 am
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    Kerry,

    Thanks for that reply and link!

    We are going to apply for an IRS Information Return Intake System (IRIS) TCC in addition to the IRS FIRE TCC we’ve already obtained. It looks to me like IRIS might be a better fit for an organization our size.

    And we’ll keep those third-party software vendors, as mentioned in the linked blog, in mind in case we decide to go that route.

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