IRS provides updates to Publication 1220

The IRS has issued Publication 1220, Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G, for 2015. Information that is new for tax year 2015 includes:

• FIRE Production System is available from January 19, 2016, through December 9, 2016.

• FIRE Test System is available from November 2, 2015, through February 19, 2016. The FIRE Test System will be down from 6 p.m. (Eastern) December 11, 2015, through January 3, 2016, for yearly updates.

• Form 1099-DIV, Dividends and Distributions–a.) Payee “B” Record — Added field position 587, FATCA Filing Requirement Indicator.

• Form 1099-INT, Interest Income–(a.) Payer “A” Record – Added Amount Code “D”- Bond Premium on Tax Exempt Bond; (b.) Payee “B” Record – Added field position 600, FATCA Filing Requirement Indicator.

• Form 1099-MISC, Miscellaneous Income–(a.) Payee “B” Record – Added field position 548, FATCA Filing Requirement Indicator.

• Form 1099-OID, Original Issue Discount–(a.) Payee “B” Record – Added field position 586, FATCA Filing Requirement Indicator.

• Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc.–(a.) Payee “B” Record – Renamed Code “K,” Distribution of IRA Assets Not Having A Readily Available FMV.

• Combined Federal/State Filing Program – Removed Utah and District of Columbia from the program.–(a.) Payee “B” Record – Removed State Code 49 from field positions 747-748; (b.) Payee “B” Record – Removed State Code 11 from field positions 747-748; (c.) State Total “K” Record – Removed State Code 49 from field positions 747-748; and (d.) State Total “K” Record – Removed State Code 11 from field positions 747-748.

• Record Layout for Extension of Time–(a.) Added Code “8”, Form 1095-B, Health Coverage field position 186; (b.) Added Code “9”, Form 1094-C, Form 1095-C, Employer-Provided Health Coverage field position 186.

• The FIRE System will be used for submitting electronic requests for extension of time to file Affordable Care Act (ACA) information returns; however, FIRE cannot be used to transmit ACA information returns.

• Form 5498-QA, Able Account Contribution Information, Form 1099-QA, Distributions from ABLE Accounts, and Form 1098-Q, Qualifying Longevity Annuity Contract Information, cannot be filed electronically on the FIRE system. These forms can only be filed on paper forms for TY15.

• Form 8809, Application for Extension of Time to File Information Returns, and Form 8508, Request for Waiver From Filing Information Returns Electronically, have been revised to include ACA information returns (Form 1095-B and Form 1094/1095-C). For more information on how to file ACA information returns including extension or waiver requests, see Publication 5165, Guide for Electronically Filing Affordable Care Act (ACA) Information Returns for Software Developers and Transmitters (Processing Year 2016).

• Form 4419, Application for Filing Information Returns Electronically (FIRE)–(a.) Added checkbox “Revised Form 4419″ and added a box to provide the current Transmitter Control Code (TCC); (b.) Box 8 – Removed questions pertaining to the use of software or a software provider; (c.) Box 8 – Added checkbox to confirm applicant has read the affidavit and is authorized to sign the document on behalf of the transmitter and/or payer; and (d.) Instructions – Added information to revise current TCC information.

2015 updates

• Table 1: Participating States and Codes Added for Colorado, Minnesota and North Dakota.

• Sec. 3 What’s New For Tax Year 2015 Added #10 – The FIRE System will be used for submitting electronic requests for extension of time to file Affordable Care Act (ACA) information returns; however, FIRE cannot be used to transmit ACA information returns.

• Sec. 9 Penalties Associated with Information Returns. Added to Note to inform reader additional information on increased penalty amounts can be found at http://www.irs.gov/uac/RDA-2015-07-31-2015- General-Instructions-for-Certain-Information-Returns.

• Sec. 10 Corrected Returns .04 Corrections and Penalties. Added to Note to inform reader additional information on increased penalty amounts can be found at http://www.irs.gov/uac/RDA-2015-07-31-2015- General-Instructions-for-Certain-Information-Returns.

• Sec. 1 Extension of Time, under second Note Updated form title to Form 1099-QA

• References to 2015 General Instructions for Certain Information Returns Removed 2015 from title. Publication 1220 will link to current version.

• Record Payer “A” Record Form 1098, Mortgage Interest Statement Revised Amount Code 4 to state Mortgage Insurance Premium

• Sec. 3 What’s New For Tax Year 2015 – Inserted #11 to state: Form 5498-QA, Able Account Contribution Information, Form 1099-QA, Distributions from ABLE Accounts, and Form 1098-Q, Qualifying Longevity Annuity Contract Information cannot be filed electronically on the FIRE system. These forms can only be filed on paper forms for TY15. Subsequent updates have been renumbered.

• Payee “B” Record – Record Layout Form 1099-R- Field Position 545-546 – Field Title Distribution Code Removed statement: Distribution Codes D and K cannot stand alone.

• Part D. Sec. 1 Extension of Time Revised second Note to state: Extension requests for Form 5498-QA, Able Account Contribution Information, must be submitted on a paper Form 8809 and cannot be submitted through FIRE. Refer to Form 8809 instructions for more information. (IRS Publication 1220, Revised 9/2015.)

Visit our News Library to read more news stories.