As part of its multi-year business systems modernization plan, the IRS has implemented new systems and processes that must be followed to access their systems to file information returns.
With a new process in place, electronically filing information returns requires obtaining access credentials and the first step is to establish an e-Services account with the IRS. Having an e-Services account gives businesses access to a suite of web-based services that allow tax professionals and taxpayers to complete transactions online with the IRS.
Who needs an e-Service account?
Every employee within the company that intends to use any of the IRS systems available as part of the IRS e-Services platform needs an e-Service account. To create an e-Service account, employees must create an account with the IRS third-party credential service provider ID.me in order to receive access to a secure mailbox. Each individual will provide information, documentation and other evidence to establish their identity. Once their identity is verified, the IRS will mail a registration notice containing a confirmation number to the registrant. Once approved, organizations can apply for a Transmitter Control Code (TCC) using the IR (Information Returns) Application for TCC system.
What is a Transmitter Control Code (TCC)?
Businesses are required to use a TCC assigned to them by the IRS to transmit electronic information returns to the IRS, including 1099 Forms. A TCC is a unique five-digit code that identifies a business transmitting electronic returns to the IRS. Without a TCC, a business would not be able to electronically file their returns, however, it is important to remember that before you can register for a TCC, you must first complete setting up an e-services account on ID.me.
Applying for your own TCC
If you are applying for a TCC, be prepared to provide several pieces of information:
- Legal Business Name and Employer Identification Number (EIN)
- Be careful that your legal name matches the name used for EIN registration
- Business physical location and billing address
- Business structure (Corporation, LLC, etc.)
- Business Telephone Number
- Type(s) of forms that will be filed
- Authorized Users with a U.S. TIN (Tax Identification Number) or ITIN – title, telephone number, and date of birth
As part of the TCC application process, you will also need to determine if your company is an Issuer or Transmitter. An Issuer will electronically file information returns for your business. A Transmitter will electronically file information returns for other businesses. It is also necessary to identify the Responsible Officials for your company. These would be the first person(s) in contact with the IRS and there must be two per company unless you are a Sole Proprietor or Single Member LLC.
What if your organization already has a TCC?
If your company has already been filing information returns with the IRS, you may have one or many TCCs that are already associated with your company name. In the past, companies most likely applied for a new TCC or changed information about existing TCCs using Form 4419 – Authorization for TCC. The IRS has discontinued this form, looking to transition all previous TCC information to their new IR Application for TCC solutions. Any TCC not associated with a valid ID.me account as of August 1, 2023, was deactivated and organizations must use the new application system to apply for a new TCC.
Once you have access…
Once you have access to file information returns through those IRS systems, you still need to work with the IRS to test your data and make sure it meets the IRS formats. You may also need to retest throughout the year to continue to have your TCC be able to file electronically with the IRS.
Minimize the hassle with eFileMyForms
New mandates and requirements for electronically filing tax returns in 2023 will require filers to pay close attention to the details during the filing process. eFileMyForms makes it easy for businesses to manage and comply with 1099, W-2, ACA and 1042-S filing requirements, all while ensuring your returns are filed timely and securely.
eFileMyForms provides electronic filing services for nearly 30,000 businesses, accounting and bookkeeping firms every year. Which means we have all the credentials in the IRS systems and active TCCs that are needed to file for your business and others on your behalf. We work with the IRS to make sure our systems produce the most up-to-date transmittals and to ensure that client information can be delivered seamlessly. And if troubles arise with IRS systems, eFileMyForms works directly with the IRS to resolve any issues as quickly as possible, allowing you to focus your time on other important tasks.
Visit our website to learn how eFileMyForms can help you stay compliant while meeting your tax and regulatory reporting challenges.