TCC Application IRS, Eligibility Criteria, Payment Dates, Amount, Status Steps To Apply, Required Documents & Deadlines

News: Choosing to electronically file information returns with the IRS proves to be a more efficient and accurate method when compared to the traditional paper submissions. However, if you plan to electronically file 10 or more information returns, it’s important to note that you will require a Transmitter Control Code (TCC). This requirement became effective on January 1, 2024.

The TCC Application Process

The process of obtaining a Transmitter Control Code (TCC) facilitates tax professionals and businesses in electronically filing information returns with the IRS via the Information Returns Intake System (IRIS). The IRIS Application for TCC offers a streamlined approach to acquiring this crucial code. For efficiency, it is advisable to use the same TCC when applying to multiple payers. This ensures a cohesive and organized filing process across various payers.

To apply for a TCC, follow these steps:

1. To initiate the process of obtaining a Transmitter Control Code (TCC) through the IRIS Application, follow these steps:

   1. Access the IRS website and navigate to the “IRIS Application for TCC” page.
   2. Create a new account or log in using your existing IRS credentials. If you’re a new user, link your account with ID.me, a secure verification service.
   3. Indicate whether you’re applying as an individual or a firm/organization.
   4. Complete the application by providing accurate information, including the applicant’s legal name and Employer Identification Number (EIN), business contact details, physical address, business activities, specific information returns you intend to file, software for transmission (if applicable), authorized users with their Social Security numbers/ITINs, roles, and contact information.
   5. Review and attest to the accuracy of the application.
   6. Before electronically submitting the application, carefully review it for any errors.
   7. The IRS typically processes applications within 45 days. You will receive email notifications regarding the application status and, if approved, your assigned TCC.

   
   

Mandatory and Optional TCC Holders

You need a TCC if you’re an entity electronically submitting information returns, like Forms 1099, to the IRS using the Filing Information Returns Electronically (FIRE) system. Let’s break down who needs a TCC for e-filing with the IRS:

Mandatory TCC Holders:

• Entities that exclusively file information returns on their own behalf, transmitters handling submissions for others (like third-party processors), software developers crafting transmission software, fiduciaries such as trustees, executors, and administrators handling returns for estates and trusts, and State and Federal agencies submitting information returns on behalf of taxpayers all fall into the categories requiring a TCC for electronic filing with the IRS.
• Optional TCC Holders:

• Individuals who file Form 1042-S (Foreign Income Tax Withheld at Source).
• If you file under the same legal name and EIN/SSN, you only need one TCC for multiple payers.
• You do not need a TCC if you are filing information returns on paper.

Recent Updates and Deadlines

Recent updates and deadlines for the IRS TCC application process include:

Legacy TCC Migration Completed:

Effective August 1, 2023, the transition of legacy Transmitter Control Codes (TCCs) issued before September 26, 2021, to the new IRIS system has concluded. It’s important to note that old TCCs are now obsolete and cannot be used for electronic filing.

Filing Threshold Decreased:

Starting January 1, 2024, there’s a change in the electronic filing threshold for information returns—it has been lowered to 10 or more returns. If you’re submitting 10 or more information returns, like Forms 1099, electronic filing is now mandatory, and you’ll need to acquire a TCC.

Modernized e-File Implementation:

The IRS is in the process of rolling out the Modernized e-File (MeF) system for information returns. Although it’s currently applicable to specific forms and filers, the plan is for this system to eventually take over from the existing FIRE system. This transition may influence the TCC application process in the future. It’s advisable to stay informed about upcoming changes by checking the IRS website regularly.

Important Deadlines:

The window for migrating legacy TCCs to the IRIS system closed on August 1, 2023. If you held an older TCC, it’s now obsolete.

Starting January 1, 2024, electronic filing with a TCC is obligatory for those submitting 10 or more information returns.

Bear in mind that the usual processing time for a TCC application with the IRS is around 45 days. However, actual processing times can vary based on factors like application completeness, volume during peak filing periods, and potential technical glitches. To prevent delays, make sure your application is thorough and accurate.

FAQs

Q: Is a TCC required for electronic filing of information returns with the IRS?

A: Certainly, a TCC is essential for entities engaging in electronic filing of information returns through the FIRE system.

Q: Can one TCC be used for multiple payers?

A: Absolutely, it is advisable to utilize the same TCC for each payer when applying to multiple payers.

Q: When should I apply for a TCC?

A: While there’s no specific deadline for TCC applications, it’s recommended to apply before the filing deadline, especially if you intend to electronically submit 10 or more information returns for a smoother process.