The Internal Revenue Service has updated its electronic filing requirements, lowering the threshold for filing information returns electronically from 250 to just 10 per tax year. This change impacts thousands of employers, sole proprietors, and legal businesses that once mailed paper forms, requiring them to e-file information returns through approved systems such as the IRS FIRE system and the Information Returns Intake System (IRIS).
A transmitter control code, often called a TCC code, is required to electronically file information returns with the Internal Revenue Service and Social Security Administration. Whether using a FIRE TCC for a fire system account or an IRIS TCC for the intake system, your company must provide its legal business name, employer identification number, and responsible official details. Without this authorization, forms like those reporting income tax withheld cannot be filed electronically, exposing employers to penalties.
This guide provides step-by-step instructions to help employers, tax professionals, and third-party transmitters complete a new IR application, add responsible officials or authorized users, and submit required information on schedule. You will learn how to log in, verify account details, manage CSV file or CSV template uploads, review application summaries, and click submit to reach completed status. With practical strategies and deadlines, this article ensures your own company is ready for electronic filing and compliance with IRS requirements.
A transmitter control code is a unique five-digit number that the IRS gives you to approve electronic filing of your information returns. It serves as your digital authorization, allowing your business to transmit returns securely to federal agencies. The IRS uses this code to ensure your data stays secure and to keep track of all electronic submissions, making the process trustworthy and transparent.
The IRS created TCC requirements as part of comprehensive security measures protecting sensitive taxpayer data from unauthorized access. Your business must secure the correct TCC based on which filing system you choose and how many returns you submit annually. Tax professionals handling multiple client accounts need transmitter authorization, while individual businesses typically qualify for issuer status covering only their own filings.
The IRS cut the number of information returns that must be filed electronically from 250 to 10 each year, starting with the 2023 tax year. This change affects far more businesses than previous regulations required to convert to electronic systems. The count includes all the tax forms your business has to file, not just W-2 forms.
Different types of businesses show how the 10-return limit affects them and their responsibilities to follow the rules. These examples show how companies can figure out exactly what forms they need to fill out.
The FIRE system is an online platform for filing information returns electronically. It is especially helpful for large organizations and software developers who need robust processing features. While it handles most types of returns, the Social Security Administration handles W-2 forms directly. Using FIRE requires some technical knowledge and is designed for users managing a high volume of returns.
The Information Returns Intake System (IRIS) is a simple option for small to medium-sized businesses that need to process up to 100 returns at a time. This web-based platform lets you enter data by hand or upload CSV files to make processing easier. System access costs nothing and requires minimal technical knowledge.
Businesses that file 10 or more information returns in a calendar year must do so electronically. This requirement applies to all businesses, no matter how big, what type of business they are, or what industry they are in. The calculation takes into account all the information return categories that your business entity has filed.
Different business models encounter varying combinations of information returns that may trigger electronic filing requirements. These situations illustrate how the threshold applies across diverse industries and operational structures.
W-2 forms go directly to the Social Security Administration through their Business Services Online system rather than the IRS system. Employers must register separately for SSA electronic filing services, independent of IRS system registration. The SSA promotes electronic filing for all employers regardless of volume to enhance accuracy and processing efficiency.
The IRIS TCC application requires completing the IR application through the IRS website with proper verification and complete business details. During the process, you must provide your employer identification number, legal business name, and designated responsible official information. Every authorized user needs their own ID.me account for system access authentication.
The FIRE system demands a separate TCC application through the FIRE portal using documentation and verification requirements similar to those of IRIS applications. Businesses planning to use both systems must apply for distinct TCCs since codes cannot be transferred between systems. Application processing follows identical timelines and ID.me authentication requirements as IRIS submissions.
The IRS strongly recommends that the TCC application be submitted by November 1st to guarantee processing completion before the filing season commences. Applications received after this date may not achieve approval in time for mandatory filing deadlines. Processing periods can extend up to 45 days from the initial submission date.
W-2 forms require submission to the Social Security Administration and employee distribution by specific due dates each year. The electronic filing deadline is February 2, 2026, for the 2025 tax year W-2 forms. Paper filing is allowed only if your business falls below the 10-return threshold, but the due date remains unchanged.
ID.me verification demands government-issued photo identification, a phone number for SMS confirmation, and an email address for account establishment. The verification process may include facial recognition technology matching photo identification documents. Each authorized user must complete individual verification processes independently.
Authentication delays frequently occur during peak filing seasons when verification requests increase dramatically. Document quality problems often cause verification failures requiring resubmission with improved photographs. Multiple user verification needs can create processing bottlenecks in TCC application workflows.
The IRS enforces graduated penalty structures based on filing delay length, with amounts escalating significantly over time. Small businesses averaging $5 million or less in annual gross receipts qualify for reduced penalty amounts. Penalties accumulate per return, creating substantial exposure for high-volume filers.
Businesses required to file electronically that submit paper returns encounter identical penalty structures as late filing violations. The IRS considers paper filing when electronic submission is mandated as a complete failure to file. These penalties compound per return, generating substantial financial consequences for non-compliant operations.
Application rejections typically stem from incomplete business information, invalid employer identification numbers, or authentication system failures. Verifying all required contacts maintain valid ID.me accounts before submission prevents typical processing delays. Responsible official details must precisely match business registration records.
Electronic submission rejections often result from file format violations, invalid taxpayer identification numbers, or software compatibility problems. Testing systems with limited batches before complete submission helps identify technical issues early. Current software versions ensure compatibility with present tax year specifications.
Calendar reminders for TCC applications, filing deadlines, and system testing prevent last-minute compliance emergencies. Backup filing plans address potential system failures or technical complications. Regular compliance assessments help identify evolving requirements affecting filing responsibilities.
A neighborhood restaurant employing eight workers and three contractors files 11 total information returns, activating mandatory electronic filing requirements. The business must secure a TCC and transition all filing processes to electronic submission methods. This conversion requires staff training and system preparation before the filing deadlines approach.
A tax preparation firm filing returns for numerous clients easily surpasses the 10-return threshold across various information return categories. The firm needs transmitter TCC authorization to file client returns and must develop comprehensive electronic filing procedures. Client permission and data protection become essential compliance elements.
A charitable foundation filing 15 employee W-2 forms plus vendor 1099-MISC forms must establish electronic filing systems. Gig economy platforms processing thousands of 1099-K and 1099-NEC returns need sophisticated FIRE system capabilities. These organizations require early TCC applications and comprehensive system testing procedures.
The Internal Revenue Service issues a FIRE TCC for the FIRE system account, which allows businesses and third-party transmitters to electronically file information returns in large volumes. In contrast, an IRIS TCC is designed for the Information Returns Intake System, allowing employers or tax professionals to e-file information returns using a CSV file format with simplified access.
No. W-2 forms must be filed directly with the Social Security Administration using Business Services Online, not the IRIS system. The intake system managed by the IRS processes only information returns like Form 1099. Employers should confirm their legal business name, employer identification number, and required information when using the correct system to file electronically.
If you submit an IR application after the November 1st scheduled date, your application summary may not reach completed status before the tax year filing season begins. Without a valid TCC code, you cannot electronically file information returns. The IRS requires timely submissions, and missing the due date could trigger penalties, rejected files, or time request denials.
If your company uses a payroll provider or CPA, they should already have a transmitter control code to file information returns electronically. However, the IRS encourages transmitters to provide confirmation records. Employers may still apply for a TCC FIRE or IRIS account for direct control, adding responsible officials and authorized users to oversee the filing process.
Yes. Nonprofits and small businesses that fail to file electronically may request penalty relief under Internal Revenue Code Section 6724. For example, a sole proprietor or legal business with gross receipts under $5 million qualifies for reduced penalty limits. Organizations must submit a written request showing reasonable cause, such as technical access issues or authorized delegate errors, to succeed.
A TCC code remains active as long as the company files information returns on time and complies with IRS requirements. The Internal Revenue Service may revoke accounts that fail to sign in, add responsible officials, or electronically file for multiple tax years. FIRE users and IRIS users must maintain a completed status to keep their accounts valid.
Schedule your confidential tax relief review today
Copyright © 2025 Get Tax Relief Now
