We would like to inform that the IRS recently announced eagerly anticipated relief regarding accessing the Information Returns Application for Transmitter Control Code (IR-TCC) System (which is used to request and manage TCCs), as well as the File Information Returns Electronically (FIRE) System (which is used to file information returns), and also informed about other platforms that will be used by filers in the future.
Since there are now numerous systems in place and as these systems are undergoing significant changes in them, please feel free to contact us if you have any questions. If you encounter difficulties in setting up your own access, we can act for you as a transmitter. For additional guidance, please also refer to our previous information.
In short, the IRS announced the following:
Users of pre-existing Non-US TCC holders (i.e. TCCs that were registered before August 1, 2022 by a Non-U.S. Entity or Non-U.S. Financial Institution) will continue to access the FIRE system after August 1, 2023 by using their current FIRE login and by providing the EIN, TCC, Company Name, User ID and PIN to log in until further notice.
The FIRE system will be phased out in the future, to be replaced by a new system: The Information Returns Intake System (IRIS). IRIS currently accepts the submission of up to 100 forms 1099, but the IRS plans to extend the system to accept all information returns including forms 1042-S.
The IRS is working on a solution to provide access to non-US individuals that act on behalf of their non-US employers. However, they have not yet mentioned for which systems the forthcoming solution is being developed.
In summary, the situation is as follows:
Important: Pre-existing Non-US TCC holders may continue to access FIRE through the established methods for a currently undetermined period.
Important: New TCCs (and TCCs by Non-US TCC holders) can still only be requested via the new IR-TCC platform by individuals with a Secure Access account. This means that new transmitters will not be able to rely on the extension granted by the IRS and will be required to use the services of a third-party transmitter or employ individuals who are eligible to enroll as users for a Secure Access account.
For those users endeavoring to create a Secure Access account, the IRS has recently changed the access method required to access IR-TCC to a third-party authorization service provider named ID.me. The IRS mentioned that previous IR-TCC access accounts can be easily migrated to ID.me. Unfortunately, the restrictions regarding the access to ID.me (e.g. that users need a U.S. TIN) we outlined in our previous information are still present notwithstanding the change.
IRIS, which will replace the FIRE system at some point, also requires a Secure Access account.
Please note that the IRS is also working on upgrading the submission standards for tax returns (such as Form 1042). These will have to be filed in electronic form via the Modernized E-File Platform (MeF), yet another system which is challenging to access. We will provide more information on the MeF platform soon.
It is encouraging that the IRS has recognized the challenges that Non-US entities and Non-U.S. Financial Institutions have with accessing the systems and is working on solutions. It is important to note, however, that the IRS has only granted an extension to access the FIRE system so far. We do not know how the proposed solution to access the system(s) will look like and we do not know for which systems the proposed solution will apply to. We are hopeful that the solution is pragmatic, will not require users to request US TINs, and will be used for all four systems that are in scope (IR-TCC, FIRE, IRIS and MeF).
Given the complexity of the various systems and user access accounts involved, numerous clients of ours, including QIs and other filers, have chosen to utilize our services as a third-party transmitter. With the appropriate authorization, we already have the capability to submit Forms 1042-S and 1099 on behalf of our clients, enabling us to effectively manage the IR-TCC, FIRE, and IRIS systems on their behalf.