Menu

Search

Knowledge Base


15724: 1099 - Combined Federal/State Program e-Filing (DAS)


1099-MISC/1099-NEC

Drake Accounting®: How do I e-file 1099 Forms for the Combined Federal/State Program?

 

Through the Combined Federal/State Program, you can e-file 1099 information for some states at the same time you e-file Federal 1099 information directly to the IRS through the FIRE program web site (Filing Information Returns Electronically). The IRS forwards 1099 information to participating states.

Forms 1099 SSA Copy A and 1096 SSA Copy A are required to be printed on the pre-printed "red-line" forms as Data Only. If you choose to print Form and Data, a watermark will be shown across the form to prevent them from being filed with the SSA. 

This article describes the IRS approval and e-filing process for the Combined Federal/State Program. If you intend to e-file only Federal 1099 returns, see Related Links.

Watch the video, e-Filing 1099s, for a demonstration.  

  • Note: DAS does not support the creation of a 1099-MISC file for e-file purposes unless one or more of the following is true: 
    • the amount in box 1, 3, 5, 6, 7, or 10 is greater than $600, 
    • box 4 contains an amount, or
    • royalty or substitute payments in excess of $10 are included on box 2 or 8.

See the IRS 1099 Instructions for details.

The current list of participating states from Publication 1220, page 25. This list changes periodically. For current information, check with the state or its web site.


In order to e-file using the Combined Federal/State Program:

  • You must have a Transmitter Control Code (TCC). (If you don’t have one, see Related Links.)
  • You must have a FIRE account. To set up a FIRE account, go to https://fire.irs.gov and click Create New Account
  • You must have specific IRS e-file approval to file Combined Program 1099 information. (Even if you have previously e-filed Federal 1099s). Note: Combined Program approval requires test e-filing.
  • Combined Program approval authorizes you to e-file both
    • Federal only, and
    • Combined Federal and state 1099 information. The state to which you are filing must be a participant in the Combined Program.

To apply for IRS approval to e-file Combined Federal/State Program 1099 information at FIRE

For the Combined Federal/State Program, e-file a Combined Program test file only from November 1 through 15 February. Combined Program test files submitted outside this date range will be rejected.

You must have a valid 1099 already created in DAS, which serves as the test file. Note that Forms 1099 cannot be processed or e-filed in current year DAS software until later in the year when updates are issued to enable these end-of-year functions.

  1. Create the test file
    1. At e-Filings > 1099/1098 > Create File
    2. Make sure your TCC (Transmitter Control Code) is entered.
    3. Select Test File.
    4. Select Combined Federal/State Program.
    5. Select the appropriate 1099 type that you have already created from Vendor or On The Fly.
    6. Click the Create File button that was just enabled to create the test file.
    7. At the bottom of the screen, you will find the file name and location.

   

  1. Transmit the test file.
    1. e-Filings > 1099/1098 > Transmit File.
    2. Click IRS Test and follow instructions and prompts on the FIRE site to transmit the test return.

                  

  1. The IRS receives and reviews the test file. They will then e-mail you an acceptance letter, if it is approved. Per Publication 1220, "A test file is only required for the first year a filer participates in the program; however, it is highly recommended that a test file be submitted every year. Records in the test and actual file must conform to current procedures.... Some participating states require separate notification that the payer is filing in this manner. The IRS acts as a forwarding agent only. It is the payer’s responsibility to contact the appropriate state(s) for further information."

To e-file a live 1099 in the Combined Federal/State Program

After IRS receives the clients’ consent forms, you can transmit the 1099-MISC.

  1. Return to e-Filings > 1099/1098 > Create File.
  2. Click Original File in the File Indicator section.
  3. Select Combined Federal/State Program.
  4. Select the appropriate 1099 type that you have already created from Vendor or On The Fly.
  5. Click the Create File button.
  6. *Go to e-filings > 1099/1098 > Transmit File.
  7. Click IRS Fire in the Transmit 1099 section.
  8. Once connected to the FIRE website, click Log On.
  9. Enter your User ID and Password (the password is case sensitive).
  10. Click Click here to continue.
  11. Click Send Information Returns.
  12. Enter your TCC and TIN.
  13. Click Submit.
  14. Click Accept.
  15. Click either Original File or Correction File.
  16. Click Submit.
  17. Enter your 10-digit PIN and click Submit.
  18. Click Browse to locate the file and open it.
  19. Click Upload

Note: To check the status of the Form 1099 transmissions, or verify what Forms 1099 have been filed, you will need to log in to the FIRE website.

Forms 1099 that are e-filed do not require a paper-filed 1096. The 1099 transmission file contains all the information that would be supplied by a 1096.

*If using Drake Hosted, first move the file that was created to the local C:\ drive, as the FIRE site does not see the Drake Hosted drives. 

Prior year e-Filing

You can e-file a prior year Form 1099, however, you must generate that file within the current year software. For example, if you need to file a tax year 2018 Form 1099 after filing for tax year 2019 has begun, you must use DAS19 to create the 2018 Form 1099. Steps are below: 

  1. Go to e-Filings > 1099/1098 > Create File.
  2. Change the Payment Year to the prior year. In the example, enter 2018.
  3. Click Original File in the File Indicator section.
  4. Select Combined Federal/State Program.
  5. Select the appropriate 1099 type that you have already created from Vendor or On The Fly.
  6. Click the Create File button.
  7. *Go to e-filings > 1099/1098 > Transmit File.
  8. Click IRS Fire in the Transmit 1099 section. 
  9. Once connected to the FIRE website, click Log On.
  10. Enter your User ID and Password (the password is case sensitive).
  11. Click Click here to continue.
  12. Click Send Information Returns.
  13. Enter your TCC and TIN.
  14. Click Submit.
  15. Click Accept.
  16. Click either Original File or Correction File.
  17. Click Submit.
  18. Enter your 10-digit PIN and click Submit.
  19. Click Browse to locate the file and open it.
  20. Click Upload

Note: To check the status of the Form 1099 transmissions, or verify what Forms 1099 have been filed, you will need to log in to the FIRE website.

Forms 1099 that are e-filed do not require a paper-filed 1096. The 1099 transmission file contains all the information that would be supplied by a 1096.

*If using Drake Hosted, first move the file that was created to the local C:\ drive, as the FIRE site does not see the Drake Hosted drives. 


Related Links


Also In This Category


Details
Article has been viewed 5.9K times.
Last Modified: 5 Months Ago
Options