Tuesday, July 27, 2021

Special edition of e-News for Small Business – Information for FIRE users

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e-News for Small Business July 27, 2021

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Issue Number: 2021-11

The IRS will be making significant improvements to the Filing Information Returns Electronically (FIRE) application process for new users. The new online Information Returns (IR) Application for Transmitter Control Code (TCC) is scheduled to deploy on September 26, 2021. The new application will be available on IRS.gov and will replace both the current Form 4419 and the Fill-in Form 4419 on the FIRE System.
 
New users will be required to authenticate their identities and create a new account through IRS Secure Access Account to access the new online IR Application for TCC. Details on what users need to verify their identities can be found at www.IRS.gov/SecureAccess. Existing Secure Access (SA) users will be able to use their existing SA account.
 
Any filer, including corporations, partnerships, employers, estates and trusts, who files 250 or more Forms 1097, 1042-S, 1098, 1099, 3921, 3922, 5498, 8027, 8955-SSA or W-2G for any calendar year must file their information returns electronically.

In late 2022, to better secure the FIRE system, existing FIRE users will also be required to transition to a stronger identity proofing authentication process. The target timeframe for this move is Fall 2022.
 
A quick reminder that the Taxpayer First Act of 2019 (TFA) required the IRS to increase electronic filing. Counsel has now issued proposed regulations to reduce the current 250-return threshold to 100 in 2022 and to 10 in 2023. To review the proposed regulation or for details on the public hearing and comment period, see the Federal Register.
 
For more information on FIRE changes, see FIRE System Update: Improving the Process and Security for Information Return (IR) Application for Transmitter Control Code (TCC).


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