The IRS recently released the 2023 Publication 1220, which contains electronic filing specifications for forms 1099 and other information returns. There are no changes to the specifications themselves, but filers should be aware of several important additions to the publication.
First, information about the new IRIS filing system has been added. To use IRIS, filers need to apply for a new Transmitter Control Code (TCC). See Publication 5717 (IRIS Taxpayer Portal User Guide) for more information.
Second, information about the lowered electronic filing threshold has been added. For tax year 2023 information returns filed in 2024, filers must file electronically if they are filing 10+ aggregate information returns. See here for more information about the new threshold.
Third, DC and Pennsylvania were added to the list of states that participate in the Combined Federal and State Filing program. At this time, neither DC nor Pennsylvania has issued guidance confirming participation. Sovos will monitor the states for updated guidance on this issue.
Finally, information about TCC use limits has been added. For example, filers can only use a TCC to submit 1,000 files per year. A new TCC must be obtained to submit additional files. Special use limits also apply when the TCC is used to obtain an automatic extension of time.
The 2023 Publication 1220 can be found here.
