Organizations that access IRS systems to file information returns, including Form 1099, Affordable Care Act returns and more, need to understand how technological updates could impact their filing processes. As part of its multi-year business systems modernization plan, the IRS has implemented new systems and processes that must be followed for accessing their systems for you to file information returns. One of those changes is to transmitter control code (TCC) requirements.
As of August 1, 2023, any TCC account that was not associated with a valid information return (IR) has been deactivated. In this blog, we will discuss the basics of what a TCC is, why you need one to access IRS systems and what to do if you missed the August 1 deadline to associate your previous existing TCC to an IR for TCC account.
A transmitter control code (TCC) is a five-digit code that identifies a business transmitting information returns electronically to the IRS. Organizations must use a TCC that has been assigned by the IRS to transmit electronic information returns. It’s important to remember that separate TCCs are required for utilizing the FIRE system, Affordable Care Act Information Returns (AIR) and the new Information Returns Intake System (IRIS). The IRS also eliminated Form 4419, meaning all TCC requests need to be managed online through the IR Application for TCC.
Obtaining access credentials is an essential first step to gaining access to IRS systems. The IRS needs to ensure that people who access systems, like FIRE, to file 1099 returns have the right authority to do so. Businesses can establish an e-Services account to access various IRS systems, including FIRE, AIR, TIN matching and Modernized e-File.
You cannot file info electronically unless you first have an e-Services account. Organizations can have employees create an account with the IRS’ third-party credentialing provider, ID.me. Each account should have a Principal and a Responsible Official, and then each authorized employee can use the system on behalf of the business.
There are numerous pieces of information that are required to apply for a TCC:
- Business legal name and employer identification number (EIN)
- Business physical location and mailing address
- Business structure (i.e., corporation, LLC)
- Business telephone number
- The form type(s) to be filed
- Authorized users with a TIN or individual taxpayer identification number (ITIN)
- If an individual is an issuer or a transmitter
- The Responsible Officials for the company
- Lists of authorized delegates (those who can maintain, revise and sign TCC applications on behalf of the Responsible Officials)
If your organization was already filing information with the IRS, you might have one or many TCCs already associated with your company name and EIN. Previously, if you wanted to change information, the 4419 form was used. However, as previously mentioned, that form has been discontinued. As of August 1, 2023, the IRS eliminated all TCC data that was stored on the paper forms. Furthermore, as of August 1, organizations must have established an ID.me account and gone through the process to associate an existing TCC with a new ID.me account. If that deadline was missed, a business’ TCCs have been deactivated and can no longer be used for this year’s filing season. Organizations will need to apply for a whole new TCC.
How can Sovos help?
Sovos offers a wide range of tax information reporting solutions and services to help eliminate the hassles of changing IRS technologies. With Sovos’ Managed Services offering, one of our experts will act as an addition to your team, taking the hassle of keeping up with all these changes out of your hands. With Sovos as your partner in tax information reporting, you can have confidence in your returns and give more time back to your employees.
Filing information returns can be tricky, but our experts can help you through it. Reach out to our team for guidance.