We expect all Datatech customers will need to file their 1099 forms electronically with the IRS due to the lower threshold (ten forms total*) in effect for electronic reporting in 2024. Datatech’s Accounts Payable system can generate the 1099-DIV, 1099-INT, 1099-NEC, and 1099-MISC forms both on paper and electronically.
*The ten forms total includes any combination of Forms W-2 and 1099.
Click here for more information on the requirements: E-file Forms 1099 with IRIS.
What Will You Need to File Electronically?
To file your forms using the IRIS system, you will need to apply for a Transmitter Control Code (TCC). If you have filed 1095-C forms electronically before, the process to apply for the TCC is similar. If you are a bookkeeping service that needs to file on behalf of multiple businesses, be sure to apply for a TCC.
You can use the following link to apply for the IRIS Taxpayer Portal TCC:
If you do not already have an account set up with the IRS, you will need to create one. The IRS uses the ID.me system to verify your identity when creating and accessing your account.
Fire System vs. IRIS System
The previous system that the IRS used for electronic reporting is called FIRE and it will be available for the 2023 tax year. If you already have an account on the FIRE system, you may continue to file the electronic 1099 forms using that system. It is our understanding that the FIRE system will be retired after 2023. If you will be using this system for 2023, go to Payables > 1099 Entry/Printing > E-file 1099s. (This window is only used for the FIRE system.)
The new system that the IRS has created for electronic 1099 reporting is called IRIS (Information Returns Intake System). This web site portal allows you to either: (1) type in the 1099 form information directly on their web site; or (2) upload the form information using a CSV (Comma Separated Value) file format based on templates that the IRS provides. The Datatech Accounts Payable system will create files with the 1099 information based on the templates.
Software Update
The IRS recently updated the specifications for the 1099 Electronic file and we had to make small programming changes to the new format.
Before generating the electronic file, download the latest update by going to Tools > Check for Updates.
Filing Deadlines
The deadline for filing 1099-NEC forms electronically is January 31, 2024. All other 1099 forms have a deadline of March 31 for electronic filing.
Most 1099 forms should be provided to recipients by January 31.
Vendor Recipient Type (Newly Added)
To support the electronic reporting, an additional setting in the Vendor file for Recipient Type was needed. You can now select either Business or Individual. By default, all vendors are set to Business. If the recipient is an individual, you will need to change this setting and enter the first and last name for the individual (which could be different than the company name) by going to Payables > Vendors > 1099s/EDD-542 tab.
If the vendor’s Tax ID is an EIN (format ##-#######) then the Recipient Type should Business. If the Tax ID is a Social Security Number or an ITIN (format ###-##-####), then it should be set to Individual.
Note: It is important for the tax ID to have the dashes for electronic filing. There is another column in the electronic file where we identify the type of Tax ID that the vendor has. The program does this by looking for the dashes. If there are no dashes present or they are in the wrong position, the program will not be able to determine the type of Tax ID.
When the electronic 1099 CSV file is generated, there are separate columns for the Company Name and the Individual’s name (first/middle/last are all separate columns). So for a Business, the Company Name is exported for that 1099. For an Individual, the program needs to export the person’s first/middle/last names in separate columns. When a vendor is set to Individual, the program will use the Individual Name entries that are in the DE-542 group at the bottom of the 1099 tab.
(The DE-542 report is a California specific report, but companies outside California will still use this entry to put in the individual name information.)
When a user changes the Recipient Type from Business to Individual, the program will require the First and Last Name fields to be entered prior to saving.
How to Generate Electronic 1099 Forms
A separate file is generated and uploaded for each type of 1099 form. Therefore, if you need to file both 1099-NEC and 1099-MISC forms, there will be two different files that are exported from the Accounts Payable system. You will then upload each file to the IRIS system to review and submit to the IRS.
The CSV files are automatically created when you use the print options for the 1099 forms.
To generate 1099 Electronic Files, first you will need to compile your year-to-date purchases.
1. Go to Payables > 1099 Entry/Printing > Compile YTD Purchases.
Note: If you compile and are missing vendors, you will need to edit the Vendor file 1099 info and recompile.
3. Click either Preview or Print.
4. Go to Payables > 1099s/Entry/Printing > Edit/Print Miscellaneous 1099s (or whichever 1099 you need to print).
5. After you have reviewed the information and are ready, click Print Forms. The Print Miscellaneous 1099s window will open.
6. Make sure the Year to Print is correct and select any other options as needed. Then select Export 1099s to CSV (IRIS Format).
7. Click Preview or Print. Either of these options will generate the Electronic 1099 Files. Your file explorer will open automatically where these files have been saved.
The program will save the files in 2 locations: (1) the data folder for the company you are generating from; and (2) Export > AP > 1099 > (Reporting Year).
Separate files will be generated for each 1099 type. The IRS requires you upload them individually.
There is a limit of one hundred forms per CSV file. If you have more than one hundred 1099 forms of one type, the program will generate multiple files and label them “1 of 2”, “2 of 2”, etc. Both files must be uploaded to the IRIS system so that all forms are reported.
Uploading to IRIS
The instructions for filing in the IRIS system can be accessed here.
Datatech personnel cannot provide any guidance or support on the IRIS system.
For Help With the Taxpayer Portal:
Contact the IRIS Help Desk Monday through Friday 7:30 a.m. – 7:00 p.m. ET. Listen to all options before making your selection.
866-937-4130 (toll-free)
Questions?
If you have any questions, please email our support department at Support@DatatechAg.com.