How to file 1099s electronically with the IRS
You file 1099s electronically through the IRS Filing Information Returns Electronically (FIRE) system or through an authorized third-party software provider. Most filers use the third-party route because it handles formatting, validation, and transmission automatically. You will need your IRS Transmitter Control Code (TCC), which you request from the IRS before your first filing, and you must file by the deadline — usually January 31 for the prior calendar year, though the IRS sometimes extends this date.
The IRS requires electronic filing if you are sending 250 or more information returns in a calendar year. If you file fewer than 250, you can still file electronically, but paper filing remains an option. Either way, you must also send Copy A (the IRS copy) to the IRS and Copy B to the recipient by the same deadline.
Key Takeaways
- You must file electronically if you submit 250 or more 1099s in a calendar year; below that threshold, it is optional but common.
- You need an IRS Transmitter Control Code (TCC) before you file, which you request online through the IRS FIRE system or by mail using Form SS-4.
- Most filers use authorized third-party software (like tax software or payroll providers) rather than the IRS FIRE system directly, because the software handles validation and formatting.
- The filing deadline is usually January 31, and you must send Copy A to the IRS and Copy B to the recipient by the same date.
- The IRS will reject your file if it contains formatting errors, missing required fields, or invalid tax identification numbers, so validation before submission is critical.
Getting your Transmitter Control Code (TCC)
Before you file anything, you need a TCC from the IRS. This is a unique identifier that tells the IRS who you are and links all your filings to your account. You request it through the IRS FIRE system online at fire.irs.gov, or by mailing Form SS-4 (Application for Employer Identification Number) to the IRS if you do not already have an EIN.
If you already have an EIN and are filing 1099s for the first time, go to fire.irs.gov, select "Register," and follow the prompts to request your TCC. The IRS will email it to you, usually within a few business days. Write it down and keep it safe — you will use it every year you file. If you are using a payroll provider or tax software to file on your behalf, they will ask for this code during setup.
Choosing between the IRS FIRE system and third-party software
The IRS FIRE system is free and available directly at fire.irs.gov, but it requires you to format your data correctly, upload it as a text file, and handle all validation yourself. Most individual filers and small businesses find this tedious and error-prone. Third-party software — including major tax software, payroll platforms like ADP or Gusto, and specialized 1099 filing services — costs money but handles the formatting, validates your data before submission, and often files on your behalf.
If you use a payroll provider or accounting software that already has your income data, filing through that platform is usually the simplest route. If you are filing only a handful of 1099s and want to avoid software costs, the FIRE system works, but you will need to be careful with data entry and formatting. Either way, the deadline and requirements are the same.
Preparing your data before filing
Gather the following information for each 1099 you are filing: the recipient's name, address, and tax identification number (SSN or EIN); the income amount in the correct box (Box 1 for 1099-NEC nonemployee compensation, Box 5 for 1099-MISC miscellaneous income, and so on); and any backup withholding or federal income tax withheld. Double-check tax identification numbers against what the recipient provided you — mismatches are a common reason the IRS rejects filings.
If you are using third-party software, you typically enter this data into a form or spreadsheet within the platform, and the software validates it before you submit. If you are using the FIRE system directly, you will format the data as a text file following IRS specifications, which are detailed in the FIRE system documentation. Either way, errors in names, addresses, or tax ID numbers will cause the IRS to reject your file, so accuracy matters more than speed.
Submitting your file to the IRS
If you are using third-party software, the provider handles submission for you — you review the data, approve it, and they transmit it to the IRS on your behalf. If you are using the FIRE system directly, you log in with your TCC, upload your formatted text file, and the system validates it immediately. If there are errors, the FIRE system will tell you which records failed and why, and you can fix them and resubmit.
The IRS accepts filings starting in late December and processes them through January 31. You will receive a confirmation from the IRS (or from your software provider) showing that your file was received and accepted. Keep this confirmation for your records. If the IRS rejects your file, you have until the deadline to fix the errors and resubmit.
Sending copies to recipients and meeting the deadline
Filing electronically with the IRS does not replace sending copies to the people who earned the income. You must send Copy B of each 1099 to the recipient by January 31 as well. Many third-party software providers print and mail these for you, or you can print them yourself and mail them, or send them electronically if the recipient has consented to receive them that way.
The deadline is firm: January 31. If you miss it, the IRS can impose penalties on you, and recipients may not have the documents they need to file their own tax returns on time. If the deadline falls on a weekend or holiday, the IRS typically extends it to the next business day, but do not count on this — file before January 31 to be safe.
What happens if the IRS rejects your file
The IRS FIRE system or your software provider will tell you immediately if your file has errors. Common reasons for rejection include: tax identification numbers that do not match IRS records, missing required fields, income amounts that are formatted incorrectly, or recipient addresses that are incomplete. The rejection notice will specify which records failed and why.
You have until the deadline to fix the errors and resubmit. If you are close to the deadline and unsure how to fix a problem, contact the IRS at 866-455-7438 (the FIRE system support line) or reach out to your software provider. Do not wait until the last day to file — if something goes wrong, you need time to troubleshoot.
Frequently Asked Questions
Do I have to file electronically if I have fewer than 250 forms?
No. Electronic filing is required only if you file 250 or more 1099s in a calendar year. If you have fewer, you can file on paper or electronically — the choice is yours. Many small filers choose to file electronically anyway because it is faster and reduces the chance of postal delays.
What if I do not have a Transmitter Control Code yet?
Request one through fire.irs.gov before you file. If you do not have an EIN, you will need to apply for one first using Form SS-4. The entire process usually takes a few days to a week. Plan ahead so you are not scrambling at the deadline.
Can I file 1099s for someone else?
Yes, if you have power of attorney or are acting as a payroll or tax professional on their behalf. You will still need their TCC or authorization to use the FIRE system or software under their account. Third-party software providers often handle this for multiple clients at once.
What if a recipient's tax ID number does not match IRS records?
The IRS will reject that record. Contact the recipient and ask them to verify their SSN or EIN. Once you have the correct number, correct it in your file and resubmit. Do not guess or use a number you think might be right — the IRS cross-checks these numbers, and mismatches can trigger audits for the recipient.
Is there a penalty if I file late?
Yes. The IRS charges penalties for late filing, starting at $50 per form if you file within 30 days of the deadline, and up to $260 per form if you file more than 60 days late. Penalties are lower if you can show reasonable cause, but it is far simpler to file on time.