Last minute in 2016, our company decided to change how we generate and file 1099s for suppliers.

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Q. (con't.)

Previously we had an external party do it, but at the last minute it was decided we should utilize the functionality in our ERP, which took time to develop. We were late sending out 1099s, and continue to be late filing with the IRS because our electronic transmission setup on their FIRE web site is taking forever. We have called and cannot get anyone to advise on when our credentials and ability to file will be ready. I am concerned we get later and later into the year and have yet to file. Any best practices to either figure out the issue with the FIRE site or file with paper?

 

A.

We suggest you start with your ERP provider. Is your ERP homegrown? Can you call the ERP for help? Is there any chance that the delay is a result of some issue with your system? Has the IRS confirmed they have received your request for FIRE access at all?

Here is the information for the IRS representatives who should be able to help with the FIRE site:

Contact the IRS Monday through Friday
• 1-866-455-7438 Toll Free
• 1-304-263-8700 International
• 1-304-579-4827 Telecommunications Device for the Deaf (TDD).

On what should you do, our advice is this: Your company is required by laws and regulations to file by a certain date. If your automated system is not yet working, you should be either using the old third party until you have tested and signed off the new system, or be filing by paper {which I don’t recommend as I’m assuming you are over the paper limit of 250 1099’s}. There are two dates that you must meet: the date the suppliers must receive their 1099, and the filing date with the government. Are you missing both dates? Failure to file timely can result in penalties.

This page may help you: https://www.irs.gov/uac/requirements-for-filing-with-fire. However, if the setup is taking an unusually long time (longer than 30 days), you may find it helpful to call once more and request that your issue be escalated to a technical resource or manager.

Here are some replies from our practitioner panelists:

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I use SAP and have printed and uploaded to the Fire site for many years with no issues outside of the password expiring each year. The initial set up on Fire is challenging, but only because of a question related to prior year reported tax. I believe the IRS wanted my net taxable but Fire questions hinted gross taxable.

The IRS website has information covering 1099 due dates and handling exceptions, rules, and paper vs electronic issue policies. The Fire site also reports rules related to paper / electronic submission depending on number of reports. The site requires very specific credentials to be authenticated. Typically, the treasurer is best person to apply. The applicant must have prior year tax info available, as IRS tests the applicant's info. It's best to call one of Fire site numbers if you are having trouble with site.

It may be an option to reconnect with your outside provider having them handle it this year, as you are way past the deadline.

Al Barrett
Shared Services Manager
Briggs & Stratton Corporation

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This is a tough one. When I was at another company, we had our IT Dept. extract our pertinent database on IRS Fire site specs. It was very cumbersome. Hence, that's the reason we outsourced to a 3rd party provider (1099 Pro).

All we have to do here at Cameron is get the applicable 1099 data from SAP, upload it into a template supplied by 1099 Pro, and make some submittals for them to do the rest. It is fairly simple to do, and the whole thing only costs us about $2,500 a year. Absent this capability however, I would push harder within the IRS (through your treasury group perhaps?) to resolve the Fire site component. Paper seems awfully cumbersome and prone to mistakes.

Good luck!

Chris Dritsas
Accounts Payable Manager – NSAM Financial Hub
Cameron, a Schlumberger company

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If you are filing 250+ 1099’s the IRS requires you to file electronically.

We have submitted via the FIRE systems for the last several years without issue. We use another software to convert the information from our ERP system into the correct format for the IRS FIRE system upload; is your data in the correct format?

Did you register for a TCCC number? When we upload a file, we receive a confirmation, and then in a couple of days, an email is sent to us confirming the upload was accepted. I’m including a link in hopes it may be helpful.

https://www.irs.gov/tax-professionals/e-file-providers-partners/filing-information-returns-electronically-fire

Pamela Buda M.B.A. APM
Network Accounts Payable Director
Accounts Payable Department
St Luke’s University Hospital

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