Submitting a Test File

A test file allows the IRS to check an electronic file (example "IRS1.txt") for correct format. After checking, all test data is ignored by the IRS and not processed.

Filers' can use the file called ABC_Corp_Misc_20XX_example.src to create a test file. However the FIler's real TCC information must be entered.

Instructions on uploading a Test

1. Create a 1099-Misc file with about 20 fake (or real) records. Make sure about half of the people in the file have addresses in an assortment of the participating states listed above. The Filer may use the ABC_Corp_1099_Misc_Example.src in the E200x folder as the test file.

2. Click on the Options/Filer Information Menu. Fill in your correct Filer/Company information. On the Special Tab check the box labeled "Filing both Federal and State". Click on the Options/TCC Holder Menu and enter the Filer's real TCC number and the TCC Holder Information. Save the file.
For more about the Filer and TCC Holder, please refere to the link provided here: Definitions.

3. It is no longer necessary to populate the CS column with the Edit/Insert Combined States Menu. Populate the CS column only when the state code of payees address is not where the payee lives.

4. Click on the Edit/Insert Account Numbers Menu. This will insert account numbers if they are missing. Account numbers are required by the IRS.

5. Save the file (File Save). Follow the procedure outlined under the Help/Index Menu under Topic No. 10 to send the test file to the IRS (the source file is converted to the IRS text format). Use this site to upload your IRS1 text file: FIRE.TEST.IRS.gov. In 1 or 2 days return to the IRS FIRE Test site and chek the "File Status".

Technical Notes:

◦ Payee records sent to the IRS must "balance". This means that certain sums for the payee records are added and kept in control fields in the "C" and "K" trailer records automatically by 1099 Express. In addition, certain record counts are kept in the "A" and "F" records, and an accounting of which boxes were used is kept in the "A" header record for the payee file. When the file is "read" by the IRS computer in test mode, the amounts and record counts must match all the control totals.

◦ The entire file is subject to a "reasonableness check". This means that certain sums of money must make sense, and some boxes on certain 1099 forms must contain data or be checked if other boxes contain money amounts. Also, certain fields must make sense, such as zip codes in the address fields must be numeric digits, either 5 or 9 digits long, dates and other information must be correct.

◦ In addition, IRS 1099 records, are bulky fixed length records that contain 90 percent blank spaces. For this reason, compression is very efficient. The IRS allows "zipped" files.

◦ In summary, sending a test file to the IRS verifies that of the above process of balancing, reasonableness checking and decompressing is working properly and the data is free of format errors.

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