How does the W-2G form get filed with the IRS by the payer?

Lexi, Chatbot

I understand you have tax questions. Are you asking about how W-2G forms are filed with the IRS by the payer?

Lexi, Chatbot

Is there anything else the lawyer should know before I connect you?

Rest assured they'll be able to help with your e-filing process.

Gino G., CPA

Hello, my name is Gino, and I am a CPA.

Let’s discuss how to electronically file W-2G forms.

Gino G., CPA

1. What is Form W-2G?

• Form W-2G (Certain Gambling Winnings) is filed with the IRS by the payer (usually a casino, racetrack, lottery commission, etc.).
• It is used when gambling winnings meet specific thresholds.

2. When the Payer Must File W-2G:

• The payer must issue and file Form W-2G if any of the following conditions are met:
  • $1,200 or more from bingo or slot machines.
  • $1,500 or more from keno (minus wager).
  • $5,000 or more from poker tournaments (minus the buy-in).
  • $600 or more (and at least 300 times the wager) from other gambling (e.g., horse racing, raffles).
  • Any winnings subject to federal withholding, regardless of the amount.

3. Filing with the IRS:

• The payer must:
• Complete Form W-2G for each winner.
• Provide Copy B to the winner by January 31.
• File Copy A with the IRS by:
  • February 28 (paper)
  • March 31 (electronic)

4. Electronic Filing via the IRS FIRE System:

• To e-file W-2G forms, use the FIRE system (Filing Information Returns Electronically).

Step-by-Step Guide:

• Step 1: Apply for a FIRE Account (If You Haven’t Already)
  • Obtain a TCC (Transmitter Control Code) using Form 4419 via the IRS IR-TCC application system.
  • Done online through IRS e-Services.
  • Allow up to 45 days for approval.
• Step 2: Prepare the W-2G File in IRS-Compatible Format:
  • The file must follow IRS Publication 1220 format (a flat text file, not PDF, CSV, or Excel).
  •  Use:
    • IRS-approved software.
    • Custom applications that meet Pub 1220 standards.
    • Recommended Tools:
      • Greatland, Tax1099, Drake, UltraTax, ATX.
• Step 3: Log In to the FIRE System:
  • Go to the FIRE System.
  • Log in using credentials and TCC.
• Step 4: Upload the W-2G File:
  • Select “Send Information Returns.”
  • Upload the .txt file formatted to IRS standards.
  • The system will return a confirmation with a unique identifier.
• Step 5: Check Status:
  • After 1-2 business days, log back in and check file status under “Check File Status.”
  • If errors are found, correct and re-upload.
  • If accepted, save the confirmation number as proof of filing.

Gino G., CPA

You can still e-file after March 31, but you may incur penalties.

• The FIRE system remains open for:
  • Late filings
  • Corrections
  • Prior-year returns

The IRS may charge penalties for filing after the deadline without a valid reason.

Gino G., CPA

Yes, you can use the FIRE system for just one W-2G form.

However, if you file after March 31, you may face late penalties.

Gino G., CPA

A TCC (Transmitter Control Code) is a unique identifier that you need to use the FIRE system.

You can obtain it by submitting Form 4419 to the IRS.

This code allows you to transmit information returns electronically.

Gino G., CPA

Unfortunately, some third-party services do not support W-2G e-filing.

You may need to use software designed for IRS Publication 1220 or file directly via the FIRE system.

Important Notes:

• You can still e-file after March 31, but you are technically late, and the IRS may charge penalties.
• You can file corrections later if needed.
• Ensure compliance with IRS encryption and transmission standards when uploading files.