How to prepare 1099 data before filing

Suzette Ciplickas Updated by Suzette Ciplickas

Preparing your data before you file saves time and avoids the back-and-forth of corrections.
IRIS enforces stricter data standards than FIRE. Submissions that would have passed through FIRE may be rejected or flagged in IRIS.
IRIS requires a company name whenever an EIN is provided and an individual's name (first name, middle initial, and last name) whenever an SSN is provided.
For additional information refer to:
Publication 1586 Reasonable Cause Regulations & Requirements for Missing and Incorrect Name/TINs on Information Returns

Incorrect or missing TIN/name combinations can have consequences: IRS information-return penalties can apply when returns aren't filed correctly, and Publication 1586 specifically addresses reasonable cause for missing or incorrect names/TINs

Employers may use Social Security Administration’s (SSA) Social Security Number (SSN) verification systems to verify the employee’s name and SSN, but there is no Internal Revenue Service (IRS) requirement to do so. The option is useful for employers to identify potential discrepancies and correct SSNs before receiving a penalty notice. For more information, go to www.socialsecurity.gov/employer.

TIN Matching is also available as part of the Internet based pre-filing e-services that allows “authorized payers of payments subject to backup withholding” the opportunity to match Form 1099 payee information against IRS records prior to filing information returns. For more information, go to https://www.irs.gov/taxprofessionals/taxpayer-identification- number-tin-matching.

Verification file.

Refer to: Create IRS Bulk TIN Matching File and Create SSN Verification Upload File.

IRIS requires distinct elements for first name, middle initial, last name, suffix, and business name. Separate name fields. Do not combine "First MI Last" fields for SSN. 

Refer to: Formatting the Recipient field on Forms 1099

EINs must follow the XX-XXXXXXX pattern. EINs must have the one line for the business name.

You can easily look at the name format and TIN format. Right Click on the data folder. Select "Sort Employer/Recipients by ID"

  • Standardize addresses. Use USPS-standard formatting. Remove special characters (ampersands, angle brackets, non-ASCII characters).

Duplicate records for the same payee/form type will cause issues. Remove duplicates or make sure the account number on the form is unique for each duplicate payee/form type .

Before uploading your IRIS file validate each record for: 

  1. TIN type — EIN, SSN, ITIN, etc. 
  2. TIN format and completeness. 
  3. EIN + legal/business name combination. 
  4. SSN + first name + middle initial/name + last name combination. 
  5. Spelling, punctuation, suffixes, and name order against your source documentation. 

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