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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 joined Redstone Government Consulting, Inc. as a Costpoint Consultant. Her areas of expertise include many areas and modules within Costpoint. Kim specializes in Accounting, Time & Expense, and Projects with a focus on Expense, Accounts Payable, and Billing.
Kim has over 17 years of experience in government contract accounting and has extensive knowledge of various Costpoint modules: Accounting, Time & Expense, People, and Projects. She has been integral in many Costpoint upgrades and Expense Implementations.
Deltek Time & Expense is the area for which Kim has a passion. Helping employees and coworkers understand and navigate the modules is where she excels. From in-person training to company-specific instruction manuals, Kim ensures her knowledge and expertise trickle down to help empower employees, supervisors, and administrators to feel confident using the Time & Expense module. Her understanding of how the Time and People modules work together translates to aiding in better and more effective relationships with and between Accounting, Payroll, and Human Resources departments.
Kim’s knowledge of Deltek Expense goes past simply knowing the module. Kim is highly knowledgeable in GSA regulations, FTR, and JTR and has contributed to the establishment of Corporate Travel Policies to ensure employee satisfaction and corporate compliance. She has led training sessions for employees and managers and developed company-specific desk manuals for the entering, approving, and processing of Expense Reports.
Kim’s extensive history in Accounts Payable encompasses full cycle AP processes, including voucher processing, assisting with implementing approved purchasing systems, vendor management, 1099 processing, Sales & Use Tax, proposing and implementing procedure changes, and training coworkers.
Kim’s experience with Billing includes working with different billing systems, including WAWF, PLSC2, Transcepta, Morado, and Exostar, and with varying contract types. She has worked closely with all departments to ensure the accuracy and timeliness of company invoices to AR Aging and collection processes.
Kim’s experience utilizing Costpoint will contribute to the continued success of upgrades, implementations, and outsourced accounting services that our clients expect from RGCI. Her knowledge will be beneficial to our customers and their employees.