IRS Fire: How to generate an original file (MISC, INT, NEC)
In the context of the IRS Filing Information Returns Electronically (FIRE) system, an "original file" is the first-time submission of information return data for a tax year.
If you need to make changes to a previously submitted original file, you'd use a correction file.
How to Create and Prepare a 1099 Original File in the IRS FIRE Section:
- Confirm 1099 Creation
- Navigate to Ledger > 1099 and ensure the 1099 has been created for the relevant payees.
⚠️ Do not reconcile the file yet, as corrections may be needed. Once reconciled, the file will be locked. - Navigate to the IRS FIRE Section
- Go to IRS FIRE, then click New. A pop-up window will appear.
- File Setup
- File Type: Select Original.
- Reconciliation: Choose the 1099 file you want to submit.
- Format Type: Select the appropriate type—INT, MISC, or NEC.
- (Note: You’ll need to create a separate FIRE file for each format type.)
- Submit Data to State: Choose Yes if state filing is needed.
- If yes, select the appropriate State (auto-fills if already set under the Company menu).
- Description: Enter a meaningful description (e.g., 2024–1099 NEC for agents).
- Contact Person: Fill in Name, Email Address, and Phone Number.
- Click Save.
11. Review Payees
- All payees included in the selected 1099 NEC will appear with their selection boxes checked.
- Uncheck the box next to the amount of any payee you do not wish to include in the file
12. Validate the File
- Click Validate. If any errors appear (e.g., missing Tax ID or mailing address), follow these steps:
Error Resolution Steps:
- Go to each of the payee's profile.
- Update the missing or incorrect information.
- Return to Ledger 1099.
- Open the relevant 1099 file.
- Click Refresh.
- Go back to IRS FIRE and reopen the submission file.
- Click Refresh again inside the FIRE file.
- Click Validate the payee should now pass validation.
13. Click generate
- user will see list of everyone in the 1099 batch that has been flagged to receive a 1099
- (INT, MISC, NEC)
A pop-up window will appear with the AccountTech Agreement. Please read the agreement carefully.
14. Check the box for "I accept these conditions," ensure to read details carefully
15. sign the form,
16. and click OK.
An email notification will be sent to our support team, and a ticket will be created.
We’ll notify you once it has been filed, and the ticket will remain open until we receive confirmation that the file has been successfully processed by the IRS.
REMINDERS:
- The IRS does NOT mail 1099s to agents. It is the company’s responsibility to provide this information.
- You may print the agent 1099s for manual distribution, or agents can log in to Darwin.Cloud to view them.
- Companies that submit through FIRE are not required to submit Form 1096.
IRS Fire: How to generate a correction file (MISC, INT, NEC)
A correction FIRE file is a special file you send to the IRS to fix mistakes in a previous electronic tax filing, usually for forms like 1099s.
Here’s the simple version:
- You originally submitted a file through the FIRE system (Filing Information Returns Electronically).
- Later, you realize there was an errormaybe a wrong amount, name, or form type.
- Instead of resending everything, you create a correction file that only includes the parts that need fixing.
- You upload that correction through the FIRE system, and it updates the IRS records.
Think of it like sending a follow-up email to fix a typo in a report you already submitted just more official and IRS-approved.
Steps to Correct and Submit a 1099 Correction File via the IRS FIRE System
1. If correcting payee information (e.g., Tax ID or corporate name):
- Search for the agent’s profile.
- Make the necessary corrections.
- Save the updated information.
- Navigate to Ledger menu > 1099 section.
- Search for and open the relevant 1099 entry.
- Click Refresh to apply the updates.
2. If correcting the 1099 amount:
- Go to Ledger menu > 1099 section.
- Search for and open the relevant 1099 entry.
- Update the amount or enter the corrected value in the Alternate Amount column.
- Click Save.
3. To begin submitting the corrected file:
- Navigate to the IRS FIRE section.
- Click the New button.
- Under File Type, select Correction.
- In the Original File field, choose the previously submitted file that requires correction.
- Format type and state submission fields will populate based on the original file.
- In the Description field, enter a brief note (e.g., Correction for agent John Doe's amount).
- Verify the Contact Person details.
- Click Save.
- Under the Select column, check only the payees that require correction.
Important: Do not select payees who don’t need corrections.
4. Validate and generate the correction file:
- Click Validate File.
- Click Generate.
- A pop-up window will display the AccountTech Agreement. Please read the agreement carefully.
- Check the box for "I accept these conditions," sign the form, and click OK.
An email notification will be sent to our support team, and a ticket will be created. We’ll notify you once it has been filed, and the ticket will remain open until we receive confirmation that the file has been successfully processed by the IRS.
Additional Reminder:
If you're submitting corrections for 1099 amounts:
- Create one FIRE file for agents whose amount needs to be corrected to $0.
- Create a separate FIRE file for agents whose corrected amount is greater than $0