Combined State and Federal 1099 Filing

Some states allow the IRS to forward electronically filed 1099 to them, saving both them and you time. The upside of combined filing is you only need to file 1099s with the IRS. The downside is that to do so you need to register to use the IRS’s FIRE system.

To use the FIRE system, you must first register by submitting form 4419. The form may be completed online from the FIRE website. The IRS can take up to 45 days to process a request for access to the FIRE system. FIRE also requires users to have software or a service provider that can create an ASCII formatted information return; the system does not upload PDFs, nor does it provide fill-in-the-blank online forms.

If you are a multi-state filer, using the FIRE system can provide a significant time savings, once you’re up and running as a registered user. Also, if you have more than 250 information returns to file, the IRS requires that you use the FIRE system.