Electronic filing of information returns allows you to submit Form 1042-S, Form 1098, Forms 1099, Form 5498, Form 8027, Form W-2G, and Questionable Form W-4, (QWF) using a modem and telephone line.

Extension of Time requests can also be filed electronically for all of these forms types except QWF and 8027. Although electronic filing is not a requirement, it is an alternate method of filing information returns that in many cases, is most cost-effective and easier than filing on paper or magnetic media. The electronic filing of information returns is not associated with the Form 1040 electronic filing program.

Who must file electronically?

If you are required to file 250 or more information returns, you must file electronically or magnetically . The 250-or-more requirement applies separately to each type of form.

For example, if you must file 500 Forms 1098 and 100 Forms 1099-A, you must file Forms 1098 electronically or magnetically, but you are not required to file Forms 1099-A electronically or magnetically. The electronic/ magnetic filing requirement does not apply if you request and receive a hardship waiver.

TIP: The IRS encourages you to file electronically or magnetically even though you are filing fewer than 250 returns.

The filing requirements apply separately to original returns and corrected returns. Originals and corrections are not aggregated to determine whether you are required to file electronically or magnetically.

Example, if you file 400 Forms 1098 electronically or magnetically and you are making 75 corrections, your corrections can be filed on paper because the number of corrections for Form 1098 is less than the 250 filing requirement. However, if you were filing 250 or more Form 1098 corrections, they would have to be filed electronically/magnetically.

Advantages of Filing Electronically

Some of the advantages of filing electronically are as follows:

• Results available within 1-2 workdays regarding the acceptability of the data transmitted. It is the filer's responsibility to dial back in and check results.
  Note: If the file is good, but you do not want the file processed, you must contact IRS/MCC within 10 days from the transmission of your file.
• Later due dates for electronically filed Forms 1098, 1099 and W-2G than magnetic media or paper.
• The Form 4804, Transmittal of Information Returns Reported Magnetically is no longer required for electronic filing.
• Allows more attempts than magnetic media filing to correct bad files within a specific time frame before imposing penalties.
• On-line availability of transmitter's files for research and tracking purposes.
• Extended period to test electronic files: November 1 to February 15. Testing is always encouraged.

Electronic Filing Approval Procedure

File Form 4419, Application for Filing Information Returns Magnetically/Electronically, at least 30 days before the due date of the returns. Once approved IRS/MCC will assign a Transmitter Control Code (TCC). Filers who currently have a TCC for magnetic media filing will not need a second TCC for electronic filing.

Send the application Form 4419 to:

Internal Revenue Service
Martinsburg Computing Center
Information Reporting Program
230 Murall Drive
Kearneysville, WV 25430

Once a TCC is obtained, electronic filers assign their own logon name, password and PIN (Personal Identification Number) and do not need prior or special approval. If a filer is submitting files for more than one TCC, it is not necessary to create a separate logon and password for each TCC. For all passwords, it is the user's responsibility to remember the password and not allow the password to be compromised. Passwords are user assigned at first logon and are up to 8 alpha/numerics, which are case sensitive. However, if filers forget their password or PIN call toll-free 866-455-7438 for assistance. The FIRE System will require users to change their passwords on a yearly basis.

Electronic Filing Specifications

The FIRE System accepts software data compression programs, allows high-speed transmissions and offers non-peak telephone hours. The system is operational 24 hours a day, 7 days a week.

You can access the electronic filing system by dialing 304-262-2400. This number supports analog connections from 1200BPS to 56Kbps or ISDN BRI 128Kbps connection. The system can be accessed via your Dial-Up Network and web browser (Internet Explorer 4.0, Netscape Navigator 2.0, or later versions required) or communications software such as HyperTerminal, ProComm, etc.

After you file your returns, you must dial back to the system in 1-2 workdays for Forms 1098, 1099, 5498 and W-2G to find out if IRS accepted your file. For Form 1042-S and 8027, filers can verify the status of their test data within 20 workdays.

The format requirements for filing information returns electronically are the same as the requirements for filing on magnetic media.

Locating a Vendor to File Returns or Provide Software

The list of Approved IRS e-file for Business Providers contains a listing for Information Return Providers including links to each company's web site. You'll also want to check the IRS e-file for Business Partners' page for special discounts and offers. 

If you are unable to prepare the files yourself and want to purchase software, or locate someone to file on your behalf, refer to Publication 1582, Information Returns Vendor List. Publication 1582 is for information only, and in no way implies IRS approval or endorsement of products or services. You may also check your telephone directory for service bureaus.

For further information refer to Publication 1220, Specifications for Filing Forms 1098, 1099, 5498 and W-2G Magnetically or Electronically or Publication 1187, Specifications for Filing Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. Information can also be obtained by contacting the Customer Service Section toll-free at (866) 455-7438, or by calling Telecommunications for the Deaf (TDD), at (304) 267-3367 between 8:30 a.m. and 4:30 p.m. Eastern Standard Time.

Forms and publications may be downloaded from this site or ordered by calling 1-800-829-3676.