Announcement: IRS Filing Changes for Tax Year 2023

November 2023    Tags: 1099s, Accounts Payable, Trust Accounting

The 1099 filing season is just around the corner. New for tax year 2023, the IRS is requiring that anyone filing an aggregate total of 10 or more forms (including Forms 1099-MISC, 1099-NEC, 1096, etc.) must file electronically. Corrections do not count towards this total; however, all corrections must be filed in the same manner as the originals, with penalties for failure to do so.

To prepare:

• Use Tabs3 E-file. Tabs3 Software has partnered with Nelco to provide Tabs3 E-file, a complete solution to filing your Forms 1099-MISC, 1099-NEC, and 1096. With Tabs3 E-file you don’t need to request a transmittal code from the IRS. You also won’t need to deal with forms, envelopes, postage, or configuring your printer; instead, simply upload your data to the Tabs3 E-file portal. From there, forms can be electronically filed, printed and mailed, or emailed on your behalf, saving you time and manpower. For additional information on Tabs3 E-file, see KB Article R11788, “All About Tabs3 E-file.”
• If you are using the Create 1099 Disk File utility in Tabs3 Accounts Payable, you must configure a Filing Information Returns Electronically (FIRE) account from the IRS. This provides you with the necessary Payer Name Control and Transmitter Control Code for the process. Be sure that you apply for a transmittal code early. It could take 45 days to receive the code from the IRS. For more information, see https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire.
• If you plan to print the forms using Tabs3 Software, we recommend ordering 1099 forms from Nelco®. These forms are guaranteed 100% compatible with Trust Accounting and Accounts Payable. Nelco has over 50 years of experience in the business forms industry. You can order forms by calling 1-800-266-4669 or via http://www.nelcosolutions.com/Tabs3.

To learn more about the Form 1099-MISC and Form 1099-NEC, see E-file Forms 1099 with IRIS | Internal Revenue Service (irs.gov).