FIRE System Test Files
First-time electronic filers are encouraged, but not required, to submit a Filing Information Returns Electronically (FIRE) test file to verify the compatibility of their hardware and software. However, submitting a test file is mandatory when applying to join the Combined Federal/State Filing (CF/SF) Program.
It’s important to note that the FIRE production system and the FIRE test system are separate and do not communicate with each other. Therefore, you must create and maintain a separate account for each system.
Combined Federal/State Filing (CF/SF) Program
The CF/SF Program simplifies the filing process by automatically forwarding both original and corrected information returns submitted electronically through the FIRE system to participating states, free of charge. This eliminates the need for filers to send the same information separately to the participating states.
The following information returns are eligible for submission under the CF/SF Program:
Form 1099-B: Proceeds from Broker and Barter Exchange Transactions
Form 1099-DIV: Dividends and Distributions
Form 1099-G: Certain Government Payments
Form 1099-INT: Interest Income
Form 1099-K: Payment Card and Third-Party Network Transactions
Form 1099-MISC: Miscellaneous Information
Form 1099-NEC: Nonemployee Compensation
Form 1099-OID: Original Issue Discount
Form 1099-PATR: Taxable Distributions Received From Cooperatives
Form 1099-R: Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, and Insurance Contracts
Form 5498: IRA Contribution Information
To participate in the CF/SF Program, you must submit an electronic test file coded for the program through the FIRE Test System. You can refer to the FIRE system for the specific testing availability dates.
Although you only need to submit a test file during your first year of participation, it is highly recommended to submit one each year to ensure accuracy. If your test file is accepted, the IRS will send you a letter of approval.
When submitting CF/SF records, ensure they are properly coded with the two-digit state codes listed in Publication 1220, which outlines the specifications for electronically filing Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G.
It is important to note that some states require separate notification when you file through the CF/SF Program. The IRS only acts as a forwarding agent, and it is the filer’s responsibility to contact the relevant states for any additional filing requirements.
For details on obtaining a Transmitter Control Code (TCC), which is necessary for submitting files through the FIRE system, refer to Applying to File Information Returns Electronically.