A transmitter control code (TCC) is necessary for businesses electronically submitting information returns to the IRS. We’ve previously discussed how recent changes now require organizations to re-register for a TCC ahead of tax year 2023 filings. However, some filers may not receive active TCCs before their first filing deadline.
On average, the IRS claims that it takes up to 45 days for a new TCC to be processed. Currently, we are just shy of 60 days from the first information return filing deadline. This means, theoretically, there is still enough time to apply for a new TCC with the IRS using their new IR application.
However, as we approach the filing season, and businesses learn about TCC application requirements, the IRS has been flooded with last minute TCC requests. We are hearing from the industry that the “up to 45 day” average the IRS has communicated is no longer the norm and it is taking quite a bit longer. But what does that mean for businesses?
What does this mean for filers with inactive or outdated TCCs?
If you find yourself not having an active TCC when preparing to file your information returns, you may be starting to wonder what your options are. First of all, electronic filing of information returns without an active TCC is impossible. The IRS now requires electronic filings for organizations submitting 10+ information returns across all returns filed, which means filing via paper is not an option and you’ll be subject to large fines for filing via the incorrect filing method. The only other option for those that do not have an active TCC would be to seek out a provider that utilizes its own TCC to file on their behalf. Note: not all providers operate this way. Some providers will file on your behalf but will still require you to use your own TCC rather than using theirs.
Which IRS systems and filings require a TCC?
It’s important to remember that TCCs are required for utilizing the Filing Information Returns Electronically (FIRE) system, Affordable Care Act Information Returns (AIR) system and the new Information Returns Intake System (IRIS).
- Form types filed through FIRE or IRIS: 1042-S, 1097, 1098, 1099, 3921, 3922, 5498, 8027, 8955-SSA or W-2G
- Form types filed through AIR: 1094 and 1095
How can Sovos help?
Sovos offers solutions and services that electronically file with both the IRS FIRE and AIR systems and that utilize Sovos TCCs. This means organizations do not have to worry about applying for new TCCs last minute, wondering if their new TCC has been approved and issued on time. Other benefits of utilizing Sovos’ TCCs include not having to:
- Race against the clock to get a new TCC
- Put your company at risk of receiving penalties by resorting to non-compliant paper filings
- Create an ID.me account requiring identity verifications
- Appointing two Responsible Officers to your applications
Connect with our team today to learn more about how Sovos can help with the new TCC requirements.