| What is the Combined Federal/State Filing (CF/SF) Program? |
IRS established the Combined Federal/State Filing Program to simplify information returns filing for the taxpayer. IRS/IRB will forward this information to participating states free of charge for approved filers. Separate reporting to those states is not necessary.
The following information returns may be filed under the CF/SF Program: 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, 1099-R, 5498.
For detailed information on the Combined Federal/State Filing program, refer to IRS Publication 1220 or contact IRS/IRB customer service at 1-866-455-7438, Monday through Friday, 8:30AM to 4:30PM EST. |
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| Do all states participate in the Combined Federal/State Filing Program? |
No. For a list of participating states, select 'CFSP/FIPS Codes' on Account Ability's 'Help' menu. Participating states will have a numeric code appearing in the CFSP column.
FYI: The 'FIPS' column lists each state's Federal Information Processing Standards (FIPS) code. FIPS codes are a standardized set of numeric or alphabetic codes issued by the National Institute of Standards and Technology (NIST) to ensure uniform identification of geographic entities through all federal government agencies. FIPS codes are primarily used when reporting annual wage reports electronically. |
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| How can I participate in the Combined Federal/State Filing Program? |
Anyone with a valid Transmitter Control Code (TCC) can request approval from IRS for participation in the Combined Federal/State Filing (CF/SF) program. If you don't have a TCC, you can apply for one by selecting 'Form 4419 - Application for TCC' from Account Ability's 'Help' menu.
To request approval to participate, an electronic test file coded for this program must be submitted to IRS/IRB electronically between November 1 and February 15. If the test file is acceptable, IRS/IRB will send you an approval letter.
While a test file is only required for the first year a filer applies to participate in the program, IRS/IRB highly recommends that a test file be sent every year a filer participates in the program.
For detailed information on the Combined Federal/State Filing program, refer to IRS Publication 1220 or contact IRS/IRB customer service at 1-866-455-7438, Monday through Friday, 8:30AM to 4:30PM EST. |
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| What must I do within Account Ability to participate in the Combined Federal/State Filing Program? |
Ensure that the 'Combined Fed/State Filer' indicator, located on the 'General' page of the client's master record, is checked. If checked, Account Ability will then create appropriate reporting records for each reporting state entered in the CFSP field of each recipient's return during the creation of the electronic IRSTAX transmittal file.
IMPORTANT: If you are a service bureau, it is strongly suggested that you send a letter to each of your clients in participating states indicating that you can, if they desire, report the following information returns to their state electronically: 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, 1099-R, 5498. If they would like to participate in the Program, have them sign and date the letter and mail it back to you. Once you have received their approval, check the 'Combined Fed/State Filer' indicator on their master record and leave the rest to Account Ability. Until you receive a written approval from your client, leave the 'Combined Fed/State Filer' indicator unchecked. |
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| How do I create a TEST file coded for participation in the CF/SF program? |
In order to create a TEST file from Account Ability,
a) Open the 'Client (Filer) Management' module.
b) If you haven't already done so, create a client (filer) record for your company.
c) Double-click your company's client record and open Form 1099-MISC.
d) From the 'File' menu of Form 1099-MISC, select 'Edit Filer ...'
e) Place a check in front of the 'Combined Fed/State Filer' indicator located on the 'General' page and click OK.
f) Create a recipient record for Form 1099-MISC making sure to specify a reporting state in the CFSP field. If you double-click the CFSP field, a list of participating states will be displayed. For additional help on the CFSP field, right-click the field and select 'What's this?'.
g) Repeat step (f) until you have created at least 3 or 4 recipient records.
h) From the 'File' menu, select 'Electronic Reporting...'. If this selection is disabled (dim), you are probably in the add or edit mode, so select 'Cancel' on the 'File' menu and try step (h) again.
i) Check the TEST indicator on the 'Electronic Reporting Options' dialog.
j) Click OK to create an IRSTAX file in the 'Destination Folder' you specify.
The IRSTAX file you just created is the desired TEST file. |
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| How do I submit my TEST file to the IRS? |
a) From the 'Module' menu, select 'IRS FIRE System'.
b) If you haven't yet created an account on The IRS FIRE System, select 'Create New Account' and complete all of the requested information. Otherwise, Log On using your User Id and Password.
c) From the 'Main Menu' select 'Send Information Returns'.
d) Enter your TCC and EIN and click 'Submit'.
e) When prompted to 'Choose a File Type', click on 'Test File'.
f) When prompted to upload your file, click the 'Browse' button. Right-click your mouse in the 'File name' field and select 'Paste' from the menu. This should paste the path to your IRSTAX file. If the path does not paste properly, activate 'Account Ability' from your Window's 'Task Bar', select 'Copy a Transmittal's Path' from the 'Module' menu and try pasting the path again.
g) Click the 'Browse' button to display your IRSTAX file.
h) Double-click the IRSTAX file and click 'Upload'.
i) After your file has been received, IRS FIRE will rename it (e.g. TEST.TCCNO.0001). Jot down this file name!
j) Log off and close your web browser.
k) From Account Ability's 'Module' menu, select 'Rename an IRSTAX File...'.
l) Double-click the IRSTAX file and enter the file name you jotted down in step (i) above.
In a couple of days the IRS will notify you via email as to the acceptability of your file. If acceptable, IRS/IRB will send you an approval letter.
NOTE: If the test file is unacceptable, you must return to the IRS FIRE System to determine what the errors are by clicking on CHECK FILE STATUS. After correcting the errors, create and submit a new test file before February 15. |
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| Must I notify my state of my participation in the Combined Federal/State Filing Program? |
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Some participating states require separate notification. IRS/IRB simply acts as a forwarding agent, so it is the Payer's responsibility to contact the appropriate state for further information. |
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| As a service bureau, should I notify my clients of participation in the program? |
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It is strongly suggested that you send a letter to each of your clients in participating states indicating that you can, if they desire, report the following information returns to their state electronically: 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, 1099-R, 5498. If they would like to participate in the Program, have them sign and date the letter and mail it back to you. Once you have received their approval, check the 'Combined Fed/State Filer' indicator on their master record and leave the rest to Account Ability. Until you receive a written approval from your client, leave the 'Combined Fed/State Filer' indicator unchecked. |
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| If I participated in the Combined Federal/State Filing Program last year, do I have to send another test file this year? |
While a test file is only required for the first year a filer applies to participate in the program, IRS/IRB highly recommends that a test file be sent every year a filer participates in the program.
For detailed information on the Combined Federal/State Filing program, refer to IRS Publication 1220 or contact IRS/IRB customer service at 1-866-455-7438, Monday through Friday, 8:30AM to 4:30PM EST. |
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| I am a Combined Federal/State Filer. Why weren't my 1099s reported to my state? |
This can result from any of the following:
The 'Combined Fed/State Filer' indicator on the client's master is not checked
The CFSP field on the 1099 form does not contain a reporting state
The 1099 form is marked VOID
The 'EFile (Mag)' indicator on the 1099 form is not checked |
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