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Questions in 'Electronic Filing (IRS)' 
Do you have simple efile instructions for filing with IRS?
Am I able to file for an Extension of Time to file 1099s using Account Ability?
While appending forms to IRSTAX, I accidentally appended a client twice. Is there a way to get rid of the duplicate?
How can I delete an existing IRSTAX file that has not yet been submitted to IRS?
Can I file form 1099-K with the state of California electronically?
Does the IRS forward my IRSTAX file to my state?
Can I file my 1099, 1098, 3921, 3922, 5498 and W2G returns electronically?
Where can I find the file to be transmitted to the IRS FIRE System?
Must I file my 1099s electronically?
I received a letter from IRS claiming no record of receiving an electronic file. However, I did receive a receipt from Account Ability's EFILE deptartment. What should I do?
When preparing the IRSTAX file many returns were omitted. Why?
I sent our IRSTAX file to the IRS FIRE System yesterday. The acknowledgement that I received indicated that they had received twice as many records as I had sent. How did this happen and how can I correct it?
The IRS refused my transmittal file because it did not include recipient account numbers. We do not use account numbers. What should I do?
What should I do with the file name that I received from IRS FIRE?
I sent a TEST file to the IRS and it was marked GOOD. I then sent the ORIGINAL returns and the file was marked BAD. IRS said it was a TEST file so it could not be sent as ORIGINAL. What am I doing wrong?
I filed my 1099s electronically but forgot to include a few recipients. What should I do?
What is the minimum number of returns that I can file electronically?
I have multiple companies to be filed electronically. Do I need a separate TCC for each company?
Why does the system complain that a TIN is required when I try to prepare electronic media?
I cannot login to the IRS FIRE System. What should I do?
I have an IRSTAX file that contains original returns and corrections. Which file type should I use when uploading it to the IRS FIRE System?
Is Form 1096 required of electronic filers?
I sent my file to IRS FIRE 3 times and each time it has been classified as BAD. What am I doing wrong?
I have to file 1099-MISC, 1099-DIV and 1099-R returns. Do I need a separate TCC for each type of return?
Must I send a TEST file to IRS prior to actually filing my 1099 returns?
I have a TCC from last year. Do I have to file for a new TCC each year?
Answers
Do you have simple efile instructions for filing with IRS?
You will find these instructions at the following link:

How to Create and Upload An IRSTAX Transmittal to the IRS FIRE System

Am I able to file for an Extension of Time to file 1099s using Account Ability?
Filing for an Extension of Time with Account Ability is easy:

1) Start Account Ability.
2) Select 'Client (Filer) Management' from the 'Module' menu.
3) Select 'Extension of Time to File' on the 'Reports' bar.

For easy to use instructions, click the 'Help' button displayed at the bottom of this dialog.
While appending forms to IRSTAX, I accidentally appended a client twice. Is there a way to get rid of the duplicate?
There is a simple way to remove a duplicate client (filer) from an existing transmittal file.

  • From the 'Module' menu, select 'View/Delete Filers from a Transmittal'.
  • Select IRSTAX from the submenu.
  • Locate the IRSTAX transmittal file and click the 'Open' button.
  • Click on the client (filer) to be removed.
  • Click the delete icon (this is the red dash next to the Close button).

    Account Ability will will prompt you to confirm the deletion (Reply Yes or No).
  • How can I delete an existing IRSTAX file that has not yet been submitted to IRS?
    Open the Electronic Reporting Options (as if you are going to add more returns to the existing IRSTAX file).

    There are two icons at the end of the Destination Folder; a 'Select Folder' icon and an 'Explore' icon.

    Click the Explore icon (the small looking glass)

    This will display the IRSTAX file.

    Right-click the IRSTAX file and select 'Delete' from the popup menu.

    Close the Electronic Reporting Options.
    Can I file form 1099-K with the state of California electronically?
    California follows the same record layout as IRS with some minor exceptions. In order to comply, you are advised to

    (a) Make sure each payee record uses the 4 character 'Name Control' field. Enter the first 4 characters of the payee's last name or business name in this field.

    (b) Make sure that all payees in your file have a California filing requirement.

    If you follow (a) and (b) above then the IRSTAX file created by Account Ability can be submitted to the state of California. Since California only accepts .txt and .zip files, you should rename IRSTAX to IRSTAX.txt prior to uploading your file.
    Does the IRS forward my IRSTAX file to my state?
    If you participate in the Combined Federal/State Filing Program, IRS/IRB will forward original and corrected Information Returns (1099, 1098, 3921, 3922, 5498, W2G) filed electronically to participating states. For more information on this program, see the FAQ topic 'Combined Fed/State Filing'.
    Can I file my 1099, 1098, 3921, 3922, 5498 and W2G returns electronically?
    Yes. Account Ability creates an IRSTAX file that complies with IRS Pub. 1220. A single IRSTAX file can contain Information Returns (1099, 1098, 3921, 3922, 5498, W2G) for as many filers as desired. Simply upload this file to IRS/IRB via The IRS FIRE System.

    FYI: Electronic filers will find a link to the IRS FIRE System on the 'Module' menu.
    Where can I find the file to be transmitted to the IRS FIRE System?
    The file you send to the IRS FIRE System is named IRSTAX. Pursuant to Pub. 1220, an IRSTAX file can contain either a single filer or multiple filers. In either case, a single IRSTAX file can contain various types of Information Returns.

    In order to create (or append) an IRSTAX file,

    a) Open the client's 1099, 1098, 5498, 3921, 3922, or W2G forms to be reported
    b) Select 'Electronic Reporting' from the 'File' menu
    d) Select a destination folder ("DESTINATION") to be used
    e) Indicate the 'Type of File' being reported
    f) Click the OK button.

    This client's returns are appended to the file IRSTAX located within the DESTINATION. If an IRSTAX file does not exist, it will be created.

    If you have many clients and many different types of Information Returns (e.g. 1099-DIV, 1099-INT, 1098, 5498, 3921, 3922, ...) to report, repeat steps (a)-(e) for each client and each client's returns. When you are all finished, the DESTINATION will contain a file named IRSTAX. This file must be transmitted via The IRS FIRE System to IRS/IRB. See the selection 'IRS FIRE System' on the 'Module' menu.

    By default, Account Ability writes the IRSTAX file to the IRS folder located within the installation folder. For example, if you installed Account Ability for reporting year YYYY to

    C:\Program Files\Account Ability\Tax Form Preparation\YYYY\

    Account Ability writes the IRSTAX file to DESTINATION

    C:\Program Files\Account Ability\Tax Form Preparation\YYYY\IRS\

    IMPORTANT: If you are using Microsoft VISTA or Windows 7 and browse to this folder, the IRSTAX file may not appear. That is because VISTA and Windows 7 do not allow applications to write directly to the Program Files folder. Instead, VISTA and Windows 7 write the file to a Virtual Store. The Virtual Store for Account Ability's IRS folder is located in

    C:\Users\USERNAME\Appdata\Local\Virtualstore\Program Files\Account Ability\Tax Form Preparation\YYYY\IRS\

    If you cannot browse to this folder,

    a) Select 'Organize' from your COMPUTER icon
    b) From 'Organize', select 'Folder and Search Options'
    c) Click on the 'View' tab
    d) Select 'Show hidden files and folders'
    e) Click 'Okay' to save your changes
    f) Now try browsing to the folder again.

    FYI: The Virtual Store is a feature of User Account Control, the centerpiece of Vistaís enhanced security. Applications that try to write to protected system locations, including Program Files, Windows, and HKEY_LOCAL_MACHINE in the registry, are prevented from doing so. Instead, a compatibility feature kicks in, and these applications write to a location in your home directory. Registry entries are written to a special area in HKEY_CURRENT_USER. The application mostly wonít know the difference, though there are limitations and you can get strange results. For example, if an application deletes a file from the virtual store when a file of the same name exists in the real location, the delete appears to succeed but the file still exists. Virtualization also fails (by design) if the application is run under another user account, or using Run As Administrator. The files written to the first userís virtual store are invisible to these other users.

    NOTE: You can avoid writing to the Virtual Store folder by running Account Ability as an Administrator. To do this, open the 'Properties' for the Account Ability shortcut and select 'Run as an Administrator' on the 'Compatibility' tab.
    Must I file my 1099s electronically?
    Any person, including corporations, partnerships, employers, estates and trusts, who files 250 or more Information Returns of any Forms 1042-S, 1098, 1099, 3921, 3922, 5498, or W-2G for any calendar year must file their Information Returns electronically.

    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, but you are not required to file Forms 1099-A electronically. The electronic filing requirement does not apply if you request and receive a hardship waiver.

    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.

    Example: if you file 400 Forms 1098 electronically 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.

    NOTE: The IRS encourages you to file electronically even if you are filing fewer than 250 returns.

    How to Participate: New users are required to submit Form 4419, Application for Filing Information Returns Electronically, to IRS/ECC-MTB at least 15 days before the due date of the return(s) for current year processing. Form 4419 may be faxed to IRS/IRB at 877-477-0572 or mailed (see address below). Upon approval, a five-character alpha/numeric Transmitter Control Code (TCC) will be assigned.

    IRS/IRB Mailing Address:

    Internal Revenue Service
    Information Returns Branch
    230 Murall Drive, Mail Stop 4360
    Kearneysville, WV 25430

    If you would like Account Ability to prepare Form 4419 for you, select Transmitter / Submitter Information from the Module menu.
    I received a letter from IRS claiming no record of receiving an electronic file. However, I did receive a receipt from Account Ability's EFILE deptartment. What should I do?
    If you received a letter similar to

    "We have no record of receiving an electronic media file containing information returns 1098,1099,3921,3922,5498 and/or W-2G (Certain Gambling Winnings) from you for Transmitter Control Code (TCC) XXXXX for tax year YYYY. You can disregard this letter if you have sent information returns using a different TCC through a service bureau or on paper. If you filed electronically for tax year YYYY using the TCC in question, please contact us...."

    Your file was transmitted to IRS FIRE using IDMS's TCC Number, which is shown on the receipt you received from our EFILE dept. as part of the file name, e.g. ORIG.TCCNO.0023.

    If you plan to use Account Ability's EFILE service in the future, disregard the letter. Otherwise, follow the instructions at the bottom of the letter and return it to IRS.
    When preparing the IRSTAX file many returns were omitted. Why?
    Are all of the 'Efile' indicators checked? If a return's 'Efile' indicator is not checked the return is not included in the IRSTAX file.

    Are any 'VOID' indicators checked? Returns marked 'VOID' are not included in the IRSTAX file.

    Have you excluded any states? The 'Electronic Reporting Options' contains a checklist of 'States to Exclude'. Many users don't see the word exclude.

    If none of the above apply, contact IDMS technical support at 888-IDMSINC.
    I sent our IRSTAX file to the IRS FIRE System yesterday. The acknowledgement that I received indicated that they had received twice as many records as I had sent. How did this happen and how can I correct it?
    How did this happen? You appended the same filer to an existing IRSTAX file more than once. Although Account Ability allows you to APPEND an IRSTAX file, always review the list of filers displayed by Account Ability before clicking the APPEND button. If you notice that the filer's returns are already in the IRSTAX file, click the CANCEL button. If you truly want to APPEND the filer's returns, click the APPEND button instead. Pursuant to IRS Pub. 1220, an IRSTAX file can contain multiple filers and multiple types of Information Returns.

    How do you correct this?
    1) Contact IRS Technical Assistance immediately at 866-455-7438 and explain the problem. The IRS will mark your original file as BAD and request that you send a REPLACEMENT file (allow 24 hours for your ORIGINAL file to be marked BAD).

    2) From the 'Module' menu select Rename an IRSTAX File. If an IRSTAX file appears in the window, double-click it and rename it to BAD. If an IRSTAX file does not appear in the window, just click CANCEL.

    3) Open the filer's returns to be reported.

    4) Select Electronic Reporting from the 'File' menu and recreate the IRSTAX file.

    5) Submit the IRSTAX file to the IRS FIRE System as a REPLACEMENT file.

    6) IRS will rename your IRSTAX file to REPL.TCCNO.XXXX, where TCCNO is your TCC and XXXX is a sequence number maintained by IRS.

    7) Log out of the IRS FIRE System.

    8) From the 'Module' menu, select Rename an IRSTAX File in order to rename your IRSTAX file to the same name as the IRS in step 6 above.
    The IRS refused my transmittal file because it did not include recipient account numbers. We do not use account numbers. What should I do?
    Account Ability can assign account numbers for you. From the 'Tools' menu select 'Assign Account Numbers'. This tool will assign a unique account number to each return. After account numbers have been assigned, create a new IRSTAX file and upload it to IRS FIRE as a REPLACEMENT file.
    What should I do with the file name that I received from IRS FIRE?
    Select 'Rename an IRSTAX File' from the 'Module' menu. Select the IRSTAX file and rename it to the name your received from IRS FIRE.
    I sent a TEST file to the IRS and it was marked GOOD. I then sent the ORIGINAL returns and the file was marked BAD. IRS said it was a TEST file so it could not be sent as ORIGINAL. What am I doing wrong?
    You appended the ORIGINAL returns to the already existing TEST file. Delete the IRSTAX file, then recreate it as usual. Send the new IRSTAX file to the IRS FIRE System as a REPLACEMENT file.
    I filed my 1099s electronically but forgot to include a few recipients. What should I do?
    You must submit these 1099s to the IRS FIRE System as original returns. In order to avoid the possibility of filing duplicate returns for those recipients who were already reported, the following procedure is suggested:

    a) Open the 'Client (Filer) Management' module.
    b) Click once on the client to be used.
    c) Select 'Copy...' from the side bar menu.
    d) Reply NO when asked if you are creating a Correction Client.
    e) Assign a temporary 'Client ID'.
    f) Click OK.

    Now, enter the 1099s you originally omitted using the temporary client. Print these returns as usual and file them with IRS as original returns. After these returns have been printed and filed with IRS,

    g) Open the original filer's 1099s.
    h) Select 'Import -> Another Client's Returns' from the 'File' menu.
    i) Select the temporary client's returns.

    When done, your original client will contain the new returns. You can now safely delete the temporary client.
    What is the minimum number of returns that I can file electronically?
    There is no minimum.
    I have multiple companies to be filed electronically. Do I need a separate TCC for each company?
    No. You can file as many companies as desired using the same TCC. Moreover, you can append all of your companies to the same IRSTAX transmittal file.
    Why does the system complain that a TIN is required when I try to prepare electronic media?
    Because you didn't supply a taxpayer identification number (TIN) on the 'Transmitter (IRS)' page of the 'Transmitter/Submitter Information' dialog.
    I cannot login to the IRS FIRE System. What should I do?
    Contact IRS technical assistance at 304-263-8700, Monday through Friday, between 8:30 AM and 4:30 PM EST. Have your TCC number and EIN available prior to speaking with a technician.
    I have an IRSTAX file that contains original returns and corrections. Which file type should I use when uploading it to the IRS FIRE System?
    Upload your IRSTAX file as an original file. IRS will automatically filter out the correction returns.
    Is Form 1096 required of electronic filers?
    Form 1096 is not required of electronic filers. The information included on Form 1096 is incorporated into your IRSTAX transmittal.
    I sent my file to IRS FIRE 3 times and each time it has been classified as BAD. What am I doing wrong?
    You are probably sending the wrong file. The file you send to IRS is named IRSTAX.
    I have to file 1099-MISC, 1099-DIV and 1099-R returns. Do I need a separate TCC for each type of return?
    No. You can file as many different Information Returns (1099, 1098, 5498, W2G) as desired using the same TCC. Moreover, you can append all of these returns to the same IRSTAX transmittal file.
    Must I send a TEST file to IRS prior to actually filing my 1099 returns?
    Only if you are applying for participation in the Combined Federal/State Filing Program. Otherwise, the option to send a test file is up to you.
    I have a TCC from last year. Do I have to file for a new TCC each year?
    No. You can use the same TCC from year to year.
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