Time Sensitive Alert: Re-Registering TCCs for 1099s
ALERT – TIME SENSITIVE: NSAC’s Tax Committee has learned that several taxpayers, who have historically filed their 1099s directly with the IRS via the FIRE system, have been caught off-guard by a new requirement. The key issue appears to be that Transmitter Codes issued before Sept 26, 2021 must have been re-registered in order to transmit 1099s in January of 2024. Below is an announcement from Thompson Reuters that was received by a member of NSAC’s Tax Committee. The Committee decided to pass along this alert to NSAC’s broader membership.
Source: Thomson Reuters, ONESOURCETM Tax Information Reporting, June 27, 2023
The new IR-TCC protocol requires “Secure Access” validation of identity. The TCC is a 5-digit alphanumeric code which identifies an authorized transmitter of information returns to the IRS online FIRE filing system, and the TCC is one of the items required for login to FIRE.
The new online IRS Information Returns Application for Transmitter Control Code (IR-TCC) was implemented in September 2021. Structured within the IRS “Secure Access” system for identity authentication, the new IR-TCC has been in use since last September as the means of making a new application for a Transmitter Control Code for electronic filing in the IRS FIRE system. Online IR-TCC is now used instead of the old Form 4419.
The IRS has begun to implement the next step in the transition: existing TCC users must make the transition to IR-TCC with Secure Access. For any TCC which was requested prior to September 26, 2021, the taxpayer must take new action in IR-TCC to transition to using the new Secure Access program for validation of identity and if this is done the existing TCC will remain active. If not transitioned, the TCC will be dropped from the IRS system and the taxpayer/filer will need to apply for a new TCC.
Some TCC holders for FIRE system need to take action to keep their TCC active under the new Secure Access protocol. The IRS issued a reminder that users of the FIRE system for information return electronic filing must take action to keep an existing Transmitter Control Code (TCC) active if the TCC was assigned earlier than September 26, 2021.
The IRS information page about this transition is https://www.irs.gov/tax-professionals/about-information-returns-ir-application-for-transmitter-control-code-tcc-for-filing-information-returns-electronically-fire
Critical dates for completing the TCC Application:
- The IR-TCC application can be done any time prior to August 1, 2023.
- Your TCC will remain active for use until August 1, 2023.
- Any FIRE TCC without a completed IR-TCC application will not be available for e-file after August 1, 2023.