Here are the top 10 common errors encountered when using the IRS FIRE (Filing Information Returns Electronically) System, along with descriptions and tips for avoiding them:
1. TCC Not Authorized
- Error: “Your TCC is not authorized to file this type of return.”
- Cause: The Transmitter Control Code (TCC) isn’t set up for the specific form type you’re filing.
- Solution: Verify your TCC authorization through the IRS and ensure it matches the form type (e.g., 1099, 1098).
2. Invalid File Format
- Error: “File format is not acceptable; must be ASCII text.”
- Cause: The uploaded file isn’t in the required ASCII text format or doesn’t comply with the 750-character fixed-length format.
- Solution: Most likely you uploaded the wrong file. Double check which file you uploaded to the IRS.
3. Mismatched TIN and Name
- Error: “TIN and Name combination does not match IRS records.”
- Cause: The Taxpayer Identification Number (TIN) or Social Security Number (SSN) provided doesn’t match the IRS database for the associated name.
- Solution: Validate names and TINs using the IRS TIN Matching Program before filing.
4. Missing or Misaligned Record Types
- Error: “Your file does not contain a complete set of ‘T’, ‘A’, ‘B’, ‘C’, and ‘F’ records.”
- Cause: The file is missing required records, or records are not aligned properly (750 characters each).
- Solution: Review the file to ensure all record types are included and formatted correctly.
5. Control Totals Do Not Match
- Error: “Totals in the ‘C’ Record do not match the sum of the payee ‘B’ records.”
- Cause: The total amounts in the control (‘C’) record do not reconcile with the sums in the payee (‘B’) records.
- Solution: Review your data and ensure that no shifting is taking place in the B-records.
6. Invalid Tax Year
- Error: “Invalid tax year in file.”
- Cause: The tax year specified in the file is incorrect (e.g., a future year or an unsupported year).
- Solution: Confirm the correct tax year is specified in the file.
7. Invalid Special Characters
- Error: “Special characters not allowed in name or address fields.”
- Cause: Unpermitted characters (e.g., &, %, or #) are used in name or address fields.
- Solution: Remove or replace special characters with acceptable alternatives.
8. Payee TIN Errors
- Error: “Payee TIN is missing, invalid, or all zeros.”
- Cause: Payee TIN fields are blank, contain invalid formats, or are filled with placeholder values (e.g., 000-00-0000).
- Solution: Ensure all payee records include valid and correctly formatted TINs.
