1. Name your responsible official/officials and contacts. The responsible official — or officials — has the authority over the e-filing process for the company at one location, and he or she is also the contact person for communication with the IRS. The contacts are the folks who may be transmitting the e-file returns as well as those may answer questions from the feds on a daily basis. All companies must put at least one responsible official and two contacts on their applications.
2. Register your official/officials and contacts with IRS e-services. The feds need to authenticate the officials and contacts your firm named on its application so you can do business with the IRS electronically. Your company’s responsible officials and contacts will need to enter personal info such as social security number and adjusted gross income. Once this process is complete, the feds will mail out a registration confirmation code. After the code is received, officials and contacts must log in to the IRS’ e-services and enter the confirmation code to complete the registration.
3. Apply for the code. Anyone transmitting info to the IRS is required to complete an ACA Information Return Transmitter Control Code (TCC) Application online through e-services. Then, they’ll receive a TCC in the mail. The IRS also has a tutorial on the application process on its website.
(Note: Health insurance issuers or carriers only need a TCC if they are acting as the transmitter.)
4. Test. After receiving the code, transmitters must complete an error-free communication test. In order to pass, the transmitter needs to do the following:
- prepare a transmission in XML format
- submit that transmission for processing
- receive a receipt ID, and
- obtain the acknowledgment and attached error file (if applicable).
Please contact us at email@example.com if you are interested in outsourcing the 1094-C "E-File" process.