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New Rule for Filing 1099s: The IRS rule TFA 23O1 reduces the electronic filing requirement from a threshold of 250 Information Returns down to 10.
Yes, you read that correctly. If you file more than 10 Information Returns after January 1, 2024, you are now required to submit those forms electronically. Employers must calculate the total number of Information Returns to determine if they meet the threshold, including 1099s, W-2s, 1098s, etc.
This means if you have a total of 4 Form 1098s and a total of 6 Form 1099-NEC, you must file electronically. All forms must be submitted to the appropriate party and through the IRS site utilizing IRIS or the “Information Returns Intake System” by the due date.
Information Returns Intake System (IRIS)
The Information Returns Intake System is an online portal created for the electronic filing of Information Returns for the IRS as well as corrections and automatic extensions.
In order to submit these forms electronically, you will need a Transmitter Control Code. The TCC must be applied for on the IRS site, and it could take up to 45 days to get approved.
If you do not already have your TCC, apply now! With 1099-NECs and various other Information Returns being due on January 31, 2024, waiting until now to apply for your code could mean your filings may be delinquent.
Extensions and Corrections
The penalties for late filing are from $60 per form to $310 per form, depending on the date filed for calendar year 2023 and the size of the business. Extensions can be requested:
- Online by completing a fill-in Form 8809 through the FIRE System for an automatic 30-day extension (not available for Form W-2, 1099-NEC, 1099-QA, 5498-Q)
- Using IRIS (if you already have a TCC) and automatic 30-day extensions still exist.
- If you do not have a TCC, you must complete and file a paper Form 8809. If you are filing form 1099-NEC, you must also file a paper form.
Corrections must be made the same way the initial form was filed. If you mailed a 1099, you must also mail your correction. If you filed an electronic 1099 using IRIS, you will file your correction using IRIS.
Changes to 1099 Preparation in Deltek Costpoint
Preparing your 1099s in Costpoint will be only slightly modified. You will not only need to print your 1099s for mailings but also create a magnetic media file, which will then be uploaded via IRIS.
How Can Redstone GCI Help?
Our experts at Redstone Government Consulting are prepped and waiting for your questions. Contact us now for assistance with 1099 prep and year-end processing.
Kim Lay is a Senior Consultant with Redstone Government Consulting, Inc., specializing in Deltek Costpoint’s Accounting, Time & Expense, and Projects modules. With over 17 years of experience in government contract accounting, she provides expert guidance in Expense, Accounts Payable, and Billing. Kim plays a key role in supporting Redstone GCI’s Costpoint implementation clients, helping them optimize financial processes, maintain compliance, and improve efficiency. Her in-depth knowledge of Deltek Costpoint and practical, solutions-oriented approach allow her to provide meaningful insights and hands-on support to our clients. Kim has played a key role in numerous Deltek Costpoint upgrades and implementations, providing expertise in system configuration, training, and process optimization. She specializes in Deltek Expense, General Ledger and Accounts Payable modules, developing tailored training and instructional materials that enable employees, supervisors, and administrators to navigate Costpoint confidently. Her in-depth understanding of Deltek Costpoint’s multiple modules strengthens collaboration between accounting, employees, and external vendors. In addition to her technical expertise, Kim has extensive experience in government travel and expense compliance, including GSA regulations, the Federal Travel Regulation (FTR), and the Joint Travel Regulations (JTR). She helps organizations develop corporate travel policies that balance compliance with employee satisfaction, leads training sessions, and creates company-specific desk manuals to streamline expense reporting. Kim’s background in Accounts Payable includes full-cycle AP processing, vendor relations, 1099 processing, and sales & use tax compliance. She has contributed to the implementation of approved purchasing systems and process improvements that enhance efficiency and compliance. Her billing expertise spans multiple platforms, including WAWF, PLSC2, Transcepta, Morado, and Exostar, across various contract types. She works closely with cross-functional teams to ensure accurate invoicing, timely collections, and effective AR aging management. Kim’s broad knowledge of Deltek Costpoint and her extensive experience across multiple financial functions make her a key asset to Redstone GCI and our clients. Her commitment to excellence and client success ensures government contractors receive the high-level support they expect from Redstone GCI.