After developing the 1095 AIR intake system, the IRS created the new Information Returns Intake System (IRIS) to handle 1099 filings. IRIS offers two submission methods:

• UI (User Interface) – manual entry through the IRS portal.

• A2A (Application-to-Application) – a direct system-to-system connection that allows businesses to transmit XML files automatically.

The A2A channel is designed for high-volume filers and software providers who need automated and scalable e-filing.

Key Changes and Requirements

Transmitter Control Code (TCC):
To file electronically, you must apply for a TCC. The process takes about 45 days and requires at least two responsible officials listed on the application. If one official leaves, another must be added to maintain compliance. Test files must be submitted and approved before live transmissions.

XML Schema:
For years, the IRS used a fixed-width file format, which was restrictive and hard to manage—especially for long addresses or foreign information. The new XML schema allows more flexibility and cleaner formatting, making it easier to handle international addresses and complex data fields.

XML Validation:
XML files must be validated against IRS schema rules. This ensures each field is properly formatted before transmission. Many software solutions, including 1099FIRE, provide validation tools to help filers avoid costly IRS rejections.

TIN Matching:
TIN Matching verifies that the taxpayer’s name matches their SSN or EIN in the IRS database. If the name and TIN don’t match, the return may be flagged as “Accepted With Errors.” These errors are extremely common, and the IRS is expected to enforce stricter validation, urging payers to correct SSNs or stop payments if no valid SSN can be found.

alk to any IRS agent who worked behind the scenes developing the 1095 AIR intake system and you can listen to their pride. The IRS fell in love with the 1095 forms and are modeling their new 1099 Information Returns Intake System or IRIS platform after the success of the 1095-B and 1095-C forms.

Why This Matters

• 1095 Filers: Every record, including dependents, is double-checked through TIN Matching. Most errors occur because names and SSNs don’t align with IRS records.

• 1099 Filers: Similar scrutiny is coming. The IRS will push payers to correct SSNs or stop doing business with recipients who cannot provide valid numbers.

Big changes are on the way, and being prepared for A2A filing now will help you stay compliant as the IRS tightens its requirements.

1099FIRE can help you prepare, validate, and transmit your A2A XML files quickly and accurately. Contact us today for more information.