Aggregate Filers Who are Aggregate Filers? Aggregate filers in the U.S. are third-party filers or entities that submit information returns (such as Forms 1099 or 1042-S) to the IRS on behalf of multiple businesses or clients. These filers typically include payroll service providers, accounting firms, tax preparers, and financial institutions that consolidate multiple clients’ tax filings into a single electronic submission. Key Characteristics of Aggregate Filers: Bulk Filing for Multiple Clients: Filers submit tax forms for multiple businesses under a single IRS Transmitter Control Code (TCC). Electronic Filing Requirement: If a filer submits 10 or more information returns, the IRS requires electronic filing using the FIRE (Filing Information Returns Electronically) system. Third-Party Role: Unlike individual filers who report their own tax information, Filers act on behalf of others, ensuring compliance with IRS regulations. Commonly Used for 1099 and 1042-S Filings: Many filers handle forms like 1099-MISC, 1099-NEC, 1099-K, and 1042-S for businesses that pay independent contractors or foreign persons. TIN Matching and Compliance: They often provide TIN verification services to prevent IRS penalties due to incorrect taxpayer identification numbers. Example of Aggregate Filers: Payroll companies that file 1099-NEC for independent contractors of multiple businesses. Tax software providers offering bulk e-filing services for accountants and businesses. Financial institutions submitting Form 1042-S on behalf of multiple foreign account holders.