Information reporting glossary: the jargon, in plain English

1096

The summary transmittal form sent with paper 1099s, 1098s, 5498s and W-2Gs. Not used when you e-file. Form 1096 at IRS.gov

ACA reporting

The Affordable Care Act's information returns: Forms 1094-C and 1095-C from Applicable Large Employers, and 1094-B and 1095-B from insurers and self-insured employers, showing health coverage offered or provided. ACA ALE calculator → Instructions for Forms 1094-C and 1095-C

Applicable Large Employer (ALE)

An employer that averaged at least 50 full-time employees, counting full-time equivalents, in the prior calendar year. ALEs must file Forms 1094-C and 1095-C. Am I an ALE? → IRS: Determining ALE status

B notice

A backup withholding notice a payer must send to a payee listed on an IRS CP2100 or CP2100A, asking for a corrected TIN. The IRS prescribes the wording for the first and second B notices in Publication 1281. B notice guide → Publication 1281

Backup withholding

Federal income tax a payer must withhold at a flat 24% from reportable payments when a payee doesn't provide a correct TIN or the IRS orders it. Reported in box 4 of the 1099 and on Form 945. Backup withholding guide → IRS: Backup withholding

Combined Federal/State Filing Program (CF/SF)

An IRS program that forwards certain e-filed 1099s to participating states, so payers don't have to file those forms with each state separately. Some states still require direct filing. State filing guide → Publication 1220

Correction (one-step / two-step)

Fixing a filed information return. A one-step correction replaces the original with a CORRECTED form; a two-step correction zeros out the original and files a new one. On paper, wrong TINs, names and form types take two steps; in IRIS a wrong name or TIN is one corrected record and only a wrong form type takes two. 1099 correction guide → Publication 1099

CP2100 / CP2100A

IRS notices sent to payers listing information returns with missing or mismatched name/TIN combinations. The number of problem accounts decides which one and in what format you receive. What to do with a CP2100 → IRS: CP2100 and CP2100A notices

De minimis safe harbor

A rule that lets payers leave small dollar errors uncorrected, $100 or less ($25 for withholding), without penalty, unless the payee asks for a corrected form. Penalty guide → Publication 1099

Disregarded entity

A business, usually a single-member LLC, that is ignored for income tax purposes and reported under its owner's name and TIN. W-9s for single-member LLCs →

E-file requirement

The rule that filers of 10 or more information returns in a calendar year, all types counted together, must file them electronically. Do I have to e-file? → IRS: E-file information returns

EIN

Employer Identification Number: the nine-digit TIN (XX-XXXXXXX) the IRS assigns to businesses, trusts, estates and other entities. Do I need an EIN? → IRS: Get an EIN

Exempt payee

A payee, such as a corporation, tax-exempt organization or government entity, that is exempt from backup withholding and, for most payments, from 1099 reporting. Shown by an exempt payee code on line 4 of the W-9. Exempt payee codes on the W-9 → Instructions for the Requester of Form W-9

FIRE

Filing Information Returns Electronically: the IRS's older system for e-filing information returns in a fixed file format. The IRS is retiring it: FIRE takes its last submissions on November 19, 2026, and from January 1, 2027 IRIS replaces it as the only IRS system for e-filing 1099s and the other returns FIRE took. FIRE to IRIS → IRS: FIRE

Form 15397

The form used to request up to 30 more days to furnish recipient copies (payee statements). It's filed online or by fax by the recipient due date and doesn't extend the IRS filing deadline. Extensions guide → Form 15397 (PDF)

Form 8809

The form used to request an extension of time to file information returns with the IRS. It's generally automatic for 30 days for most forms, but not for W-2s and 1099-NECs. Filing deadlines → Form 8809 at IRS.gov

Form 945

The annual return used to report non-payroll federal income tax withholding, including backup withholding. Backup withholding guide → Form 945 at IRS.gov

Gross proceeds

The total amount paid in a sale or settlement before expenses. Reported, for example, on 1099-B, 1099-S and in box 10 of 1099-MISC for proceeds paid to attorneys. 1099-S guide →

Information return

A form that reports a payment or transaction to the IRS (or the SSA for W-2s) so it can be matched against the recipient's return, such as 1099s, 1098s, 5498s, W-2s and 1095s. Every information return explained → Publication 1099

IRIS

The Information Returns Intake System: the IRS's system for e-filing 1099s and other information returns, and from the 2027 filing season the only one for the returns FIRE took (ACA Forms 1094 and 1095 go through AIR). Filers use the free Taxpayer Portal (keyed forms or CSV uploads) or A2A (XML from software); both need an IRIS TCC. Moving to IRIS → IRS: E-file with IRIS

ITIN

Individual Taxpayer Identification Number: a nine-digit tax ID starting with 9, issued by the IRS to people who need to file taxes but can't get an SSN. TIN format checker → Form W-7, ITIN application

Name control

The first four significant characters of a taxpayer's name that the IRS stores with each TIN and uses to match information returns. Name control generator → Publication 1220, Exhibit 1

Nonemployee compensation

Pay for services from someone who isn't your employee, such as a contractor or freelancer. Reported on Form 1099-NEC. Do I need to file a 1099? → Form 1099-NEC at IRS.gov

Payee / recipient

The person or business that received the payment and gets a copy of the information return.

Payee statement

The recipient's copy of an information return (such as Copy B of a 1099), which the payer must furnish by the due date. Recipient copy deadlines → Publication 1099

Payer / filer

The business that made the payment and files the information return with the IRS.

Reasonable cause

A standard the IRS applies when deciding whether to waive an information return penalty: the failure was beyond your control and you acted responsibly. Penalty guide → IRS: Information return penalties

Reportable payment

A payment that has to be reported on an information return once it reaches the threshold, such as nonemployee compensation, rent or interest. Do I need to file a 1099? →

SSN

Social Security number: the nine-digit number (XXX-XX-XXXX) the Social Security Administration issues to individuals. TIN format checker →

TCC (Transmitter Control Code)

A code the IRS issues to approved filers and providers so they can e-file information returns. IRIS and FIRE each use their own TCC; one doesn't work in the other. IRIS TCCs → IRS: IRIS Application for TCC

Third-party settlement organization (TPSO)

A payment app or online marketplace that settles payments between buyers and sellers. TPSOs report sellers' payments on Form 1099-K above the threshold. 1099-K guide → Form 1099-K at IRS.gov

Threshold

The minimum total payment to a payee in a year that triggers a reporting requirement, for example $2,000 for 1099-NEC payments made in 2026 and later. Thresholds by form → Instructions for Forms 1099-MISC and 1099-NEC

TIN

Taxpayer Identification Number: the umbrella term for SSNs, EINs, ITINs and ATINs. TIN format checker →

TIN Matching

An IRS service that lets authorized payers check whether a payee's name and TIN match IRS records before filing. TIN Matching result codes → IRS: TIN Matching

W-8 forms

Forms (W-8BEN, W-8BEN-E, W-8ECI, W-8IMY, W-8EXP) that foreign payees give payers to document foreign status, instead of a W-9. W-9 vs W-8 → IRS: Forms W-8

W-9

The form a U.S. payee gives a payer with their legal name, tax classification and TIN, certifying the TIN is correct. How to fill out a W-9 → Form W-9 at IRS.gov

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