The IRS is retiring its old electronic filing system -- known as FIRE -- and replacing it with a new one called IRIS, which stands for Information Returns Intake System. Think of it like a bank retiring its 1980s mainframe and switching to online banking. Same purpose, completely updated technology.

FIRE has been around since the 1980s, built for a world of floppy disks and mainframe uploads. It accepted a type of file that essentially looked like a very long typewriter page with data crammed into fixed positions in each row. IRIS uses a modern structured format and -- this is the part that changes everything -- it checks every filing for errors the moment it arrives, rather than weeks or months later when it is too late to fix without penalty.

FIRE shuts down permanently on December 31, 2026. After that date, all 1099, 1098, and related information returns must be filed through IRIS with no exceptions and no extensions.

For organizations filing through 1099FIRE: we handle the technical side of IRIS -- converting your data into the format the IRS requires and submitting it on your behalf. What we cannot do for you is prepare the underlying data itself. Depending on how your records are currently structured and what systems you use, getting your recipient information ready for our template may involve real work on your end. We help you understand what is needed before you start.

The IRS is shutting down FIRE on December 31, 2026 -- permanently. After that date, FIRE will not accept any filings at all. Not new returns, not corrections, not anything filed late. The system will simply be gone.

Tax Year 2025 returns, due in early 2026, are the last ones that can go through FIRE. Tax Year 2026 returns, due in early 2027, must go through IRIS.

The financial consequences of missing that deadline are significant. IRS penalties for late or incorrect information returns start at $60 per form when filed within 30 days late, rise to $340 per form for anything filed after August 1, and have no annual cap at all for cases the IRS considers willful. For a company filing 1,000 returns, that range runs up to $340,000 in potential penalties -- plus separate penalties for each recipient copy that is late or incorrect.

Here is the honest picture for organizations planning to use 1099FIRE: we handle the IRIS technical requirements, the IRS authorization, and the submission. But the FIRE shutdown affects the data side too. If your records, exports, or internal processes were built around the way FIRE worked, some of that will need to change regardless of who files on your behalf. The earlier you start looking at what your data actually looks like today versus what IRIS requires, the better positioned you will be.

Any business or organization that files 10 or more information returns in a year is required to file them electronically. Information returns are the forms you send to the IRS and to the people you paid -- the 1099-NEC for contractor payments, the 1099-MISC for miscellaneous income, the 1099-INT for interest, the 1098 for mortgage interest, and similar forms.

That threshold used to be 250 forms. The IRS lowered it to 10 in 2023, which brought a large number of smaller organizations under the electronic filing requirement for the first time. If you pay 10 or more contractors, vendors, or other reportable recipients in a year, electronic filing almost certainly applies to you.

When you file through 1099FIRE, we hold the IRS authorization that allows us to submit on your behalf. You do not need to register with IRIS, apply for permission codes, or navigate any IRS technical systems directly. What you do need is accurate, organized recipient data in a format our template can use. For organizations making this transition for the first time, that data preparation step is often where the real work is -- and it is something we help you think through before filing season begins.

The IRS offers three ways to file through IRIS.

Option 1: Manual entry on the IRS website. You enter information one form at a time directly in the IRS portal. This works for very small volumes but becomes impractical quickly.

Option 2: Spreadsheet upload through the IRS portal. This is free but limited to 250 records per upload -- meaning a company with 500 vendors has to split their data into multiple batches and manage them separately. You also need your own IRS authorization code, and getting one takes up to 45 business days. If you apply too late in the year, it may not arrive before your filing deadline.

Option 3: File through an IRS-authorized company like 1099FIRE. This removes the authorization requirement and the technical formatting work entirely. We hold the IRS credential, we convert your data into the format IRIS requires, and we manage the submission. What still falls on you is getting your recipient and payment data organized and into our template. That step varies in complexity depending on your systems, and we work with you on it. But the technically demanding parts -- the ones that trip up most organizations making this transition for the first time -- are ours to handle.

No. Even if your FIRE Transmitter Control Code has been active for years and in good standing, it does not carry over to IRIS. The IRS treats these as completely separate systems with completely separate credentials.

To file directly through IRIS, you would need to apply for a new IRIS-specific TCC from scratch. The process involves creating an IRS online account, verifying your identity through a third-party service, completing an application, and then waiting for an IRS suitability review that can take up to 45 business days -- longer during the busy October through January window. An organization that starts this process in October 2026 may not have its credential in hand before the January 31, 2027 deadline for 1099-NEC filings.

Organizations that file through 1099FIRE skip this entirely. We use our own TCC to file on your behalf, so you never apply, never wait, and never have to worry about a pending credential putting your filing deadline at risk.

The file format -- and what the IRS does with it the moment they receive it.

FIRE accepted a type of file that has been around since the 1980s, essentially a long text document where data was squeezed into fixed positions in each row, like filling out a typewriter form by counting spaces. IRIS requires a completely different structure where every piece of data has a specific label and follows strict formatting rules. Most older software and many internal systems cannot produce this format.

More importantly, IRIS does not just accept the file and store it the way FIRE did. It validates every detail against IRS rules the moment you submit. A single missing required field, a character the IRS does not accept, or data in the wrong position causes the entire submission to be rejected on the spot. Under FIRE, a rejected filing gave you up to 60 days to fix and resubmit. Under IRIS, there is no grace period -- the IRS does not consider your filing received until a corrected version comes through successfully.

This is exactly where 1099FIRE's role in the process matters most. Converting your data into the format IRIS requires and managing the submission is what we do. What we need from you is accurate, well-organized source data -- correct recipient names formatted to IRIS requirements, valid tax ID numbers, payment amounts that reflect what was actually paid. Getting that data ready from whatever systems you use today is the step that often involves the most effort, and it is the step worth starting on early.

Under FIRE, a recipient's full name went into a single field. Jane Smith, Robert J. Williams Jr., ABC Holdings LLC -- all in one place. IRIS now requires names to be entered in separate pieces: first name, middle name, and last name for individuals, or legal business name for companies.

This sounds like a minor adjustment, but it has real consequences if your records are not set up for it. When a recipient's name does not match what the IRS has on file for their tax ID number, IRIS flags it as a mismatch. Mismatches can require you to start withholding a percentage of future payments to that recipient and can generate IRS penalty notices -- neither of which you want.

The situations that create the most cleanup work are hyphenated last names, compound surnames, names with suffixes like Jr. or III, and business names that include legal designations like LLC or Corp. If your payroll system or vendor database has been storing names combined in a single field, those records need to be separated before they can come into our template.

Our template is built to IRIS name requirements, and we review your data before submission specifically to catch formatting issues before they become IRS problems. But the actual cleanup -- pulling correctly separated names from your source systems -- needs to happen on your side first. For organizations with large vendor or contractor lists, this step alone can take meaningful time.

A note on TIN Matching: If you want to confirm that your recipient names and tax ID numbers actually match IRS records before you file -- not just that they are formatted correctly -- 1099FIRE offers Bulk TIN Matching as an add-on service for our customers. Running a TIN Match on your recipient list before filing is one of the most effective things you can do to prevent mismatches, avoid IRS notices, and protect yourself from backup withholding requirements down the road. Ask us about it when you call.

Every person or business you pay has a tax ID number. For individual people, that is typically a Social Security Number. For businesses, it is an Employer Identification Number, commonly called an EIN. When you file a 1099, IRIS requires you to declare not just the number itself, but what type of number it is -- and it checks that declaration in real time against IRS records.

Under the old FIRE system, unclear or missing tax ID type information often slipped through and surfaced later as a CP2100 notice (the IRS notice for tax ID mismatches). Under IRIS, records where the tax ID type is missing, incorrect, or inconsistent with what the IRS has on file are flagged or rejected immediately, before the filing is accepted.

The most common root cause is that a recipient gave you information that does not exactly match what the IRS has on file. A sole proprietor running under a business name but using their personal Social Security Number. A vendor whose EIN changed after a restructuring. A contractor who changed their name and never updated the IRS. The standard fix is a current, signed W-9 form collected directly from that recipient -- which gives you their certified, up-to-date information.

As part of our pre-submission review, we flag records that look like they may have TIN issues. Identifying the problem is something we can do for you. Getting the corrected information from the recipient and updating your records is something only you can do, which is why collecting W-9 forms before filing season -- not during it -- is worth doing now.

We strongly recommend going one step further: 1099FIRE offers Bulk TIN Matching as an add-on service for our customers, and we encourage every client to use it. TIN Matching checks each recipient's name and tax ID number directly against IRS records before you file -- so you know in advance which records will be flagged and can resolve them before they become rejections, CP2100 notices, or backup withholding obligations. Catching a mismatched Social Security Number before filing is a simple fix. Dealing with it after -- through IRS notices, corrections, and potential penalties -- is not. If you are interested in adding TIN Matching to your filing service, contact us at (480) 706-6474 or mention it when you reach out.

When you submit a filing through IRIS, the IRS runs three simultaneous checks before it accepts anything.

The first check is structural. Is the file formatted the way the IRS requires? This is the most dangerous failure because it causes the entire submission to be rejected immediately -- not just the problem record, but every record in the batch. There is no grace period. The filing is not considered received until a corrected, complete version goes through successfully. Under FIRE, you often had weeks to discover and fix these issues. Under IRIS, you find out within hours.

The second check is logical. Do the numbers and codes make sense? This covers things like withholding amounts that exceed the payment they relate to, amounts formatted as negative numbers when only positive values are allowed, or codes that do not appear on the official IRS list for that field. These errors are almost always preventable with careful data preparation on the front end.

The third check involves fraud detection patterns the IRS does not fully document publicly. They are generally triggered by things like a filing where a large percentage of recipients are missing tax ID numbers, or backup withholding rates that look unusual across a batch.

Our system runs your data through its own validation before we ever send it to the IRS -- catching most issues before they become rejections and explaining them in plain English rather than IRS error codes. But some errors, particularly on the data accuracy side, can only be resolved by going back to your source records. When that is the case, we tell you exactly what needs to change and why.

The process has five steps, and our job is to make the ones in the middle -- the technically complex ones -- invisible to you while keeping you in full control of what actually gets filed.

Step 1: Data preparation and upload. You organize your recipient information using our spreadsheet template and upload it through your secure client portal. How much work this step involves depends on your current records and the systems you pull from. We help you understand what the template needs before you start, so you are not discovering format requirements in the middle of the process.

Step 2: Validation. Our system checks your file for formatting problems, missing information, and anything that is likely to cause an IRS rejection. Issues are explained in plain English so you know exactly what needs to be corrected and why.

Step 3: Your review and approval. Once your data passes validation, we generate a PDF showing every form that will be filed. You see exactly what your recipients will receive and what goes to the IRS before anything is submitted. Nothing moves forward without your sign-off.

Step 4: Submission. After your approval, we convert your data into the format IRIS requires and transmit the filing electronically using our authorized IRS connection.

Step 5: Results. The IRS responds and we give you a plain-English summary of what was accepted and anything that needs attention.

The IRS states their official response window is 7 days. In practice, accepted filings often come back much faster -- sometimes within hours.

That said, Tax Year 2026 is the first year IRIS is the only option for every organization in the country. Every company that previously used FIRE has to switch at once, and when millions of filings hit IRIS simultaneously in January and February 2027, IRS systems may slow down under the volume in ways that are hard to predict.

We set our own internal client deadlines well ahead of the IRS deadlines for exactly this reason. If there are system slowdowns, or if a submission needs corrections and a resubmission, that buffer is what gives you time to handle it without the filing deadline itself becoming a problem.

We also want to be honest about something that affects timing before the submission even happens: data preparation. For organizations making the switch from FIRE for the first time, getting your data ready for our template almost always takes longer than expected once you start looking at what your systems actually produce. Starting that process in the fall rather than in January is one of the most practical things you can do to make filing season manageable.

Yes -- and there is independent verification to back that up. 1099FIRE operates under National Software, Inc. (NSI), which holds SOC 2 Type 2 certification. That is the standard most enterprises look for when evaluating any vendor that handles sensitive personal information.

What the certification actually means: an independent auditor spent a full 12 months continuously testing our security controls -- not just reviewing our written policies, but verifying that our protections actually worked in practice over an extended period. The audit covers data storage, access controls, transmission security, and incident response.

Beyond the certification itself:

Our servers are in the United States. Your data does not leave the country.

Our print and mail partner is also SOC 2 certified. If we handle recipient mailing for you, your data passes through a second certified environment -- not an unvetted third party.

We carry Errors and Omissions insurance.

If you are evaluating other vendors, it is worth asking specifically for SOC 2 Type 2. SOC 2 Type 1 and Type 2 sound almost identical, but they are not. Type 1 checks controls at a single point in time. Type 2 tests whether those controls held up over a full year. For any service handling Social Security Numbers and EINs, the difference matters.

We provide spreadsheet templates for every form type we support. The templates run in Microsoft Excel, Google Sheets, or any standard spreadsheet program -- no special software required.

The template defines exactly where each piece of information goes. Here is what you will need:

Recipient names in separate fields -- first name, middle name if applicable, and last name for individuals, or the full legal business name for companies. This is different from how the old FIRE system worked, where names could be stored combined in a single field.

Tax ID numbers in the correct column for each recipient, along with an indication of whether it is a Social Security Number or an EIN. These need to match what the IRS has on file for that recipient. If you want to verify your recipient tax IDs against IRS records before filing, ask us about our Bulk TIN Matching add-on service -- it is the most direct way to catch data issues before they become IRS problems.

Your organization's full legal name exactly as it appears in your IRS registration -- abbreviations can create a mismatch on your own payer information.

Payment amounts for each recipient that meet or exceed the reporting threshold for that form type.

When you submit data for the first time, we go through your file with you before anything goes to the IRS. If something is not right -- a name format that will not match IRS records, a missing field, a number in the wrong column -- we catch it together and explain what needs to change. That first-submission review is a standard part of how we work, because catching preparation issues early is far less stressful than dealing with IRS rejections.

We recommend against it, and here is why: converting old files tends to inherit whatever problems are already in them.

The most significant issue is names. Under the old FIRE system, recipient names were stored in a single combined field. IRIS requires them in separate pieces. Splitting apart names that have been stored combined -- especially hyphenated surnames, names with suffixes, compound last names, and business names with legal designations like LLC -- requires judgment calls about which part is which. Those calls are not always obvious, and wrong ones produce IRS mismatches that need to be corrected later.

Beyond names, old FIRE files often contain other data patterns that do not carry cleanly into IRIS: placeholder tax ID numbers that were used to push through a filing years ago, payer names stored in shorthand rather than full legal form, and state codes in formats the IRS no longer recognizes.

The more reliable path is going back to the original source -- your payroll system, accounting software, accounts payable records, or vendor database -- and pulling recipient information directly from there. That data is current, maintained by people who know what it represents, and not carrying the accumulated workarounds of previous filing seasons.

If you are not sure how to approach that with your specific systems, call us at (480) 706-6474 before filing season. That is a much better conversation to have in October than in January.

Probably not -- but whether anything needs to change depends on how your records are currently organized, and that varies a lot from one organization to another.

Here is what stays the same: IRIS requires filings to be submitted in a specific technical format, but that is something 1099FIRE handles. The way you collect recipient information, track payments, and run year-end reports internally does not need to change.

Here is what might need to change: the way your data comes out at the end. If your current systems were built specifically around the old FIRE format -- combined name fields being the most common example -- or if your exports produce data that does not map cleanly to the fields IRIS requires, there may be meaningful work involved in getting your export ready for our template. For some clients, that is a minor adjustment. For others, it involves looking at how multiple systems hand off data and cleaning up records that have not been maintained with the new requirements in mind.

We have worked with data exports from basic spreadsheets, QuickBooks and similar accounting software, payroll platforms, accounts payable systems, and large ERP environments. Most of the time, we can work with what you have. If you are not sure, the right time to find out is before filing season -- not in the middle of it.

Under IRIS, every electronic filing must trace back to a single authorized filer. The IRS does not support arrangements where one company prepares the data and a different company submits it under separate authorization. If your current process relies on that kind of split responsibility -- for example, a payroll company creates the files and your accountant uploads them separately -- that model is not compatible with IRIS and will need to change.

The practical solution is to consolidate. Pull all your recipient and payment data together -- from payroll, accounts payable, benefits, equity administration, or wherever it lives -- and bring it into a single spreadsheet before it comes to us. We do not require it to originate from one system. We just need it to arrive as one organized file.

1099FIRE then becomes the single point of accountability for the IRS submission. We validate, convert, and submit. If anything comes back from the IRS requiring attention, we are the ones who address it.

The consolidation step itself can be straightforward or complicated depending on how different your various data sources are and how much cleanup is needed to make them consistent with each other. If you have questions about how to approach it with your specific situation, reach out before filing season starts.

The IRIS transition is a federal change only -- it affects what you file with the IRS, not your state. States have entirely separate systems and most of them have not adopted the IRIS format. Many states still require information return data in the format that the old FIRE system used, which means the way you file with your state may not need to change even as the federal process changes significantly.

The practical complication is that many organizations will find themselves needing to file two different ways at the same time -- the new way for the IRS and the old way for their state. Those are independent requirements with independent deadlines and independent penalties, and they cannot always be handled through the same channel.

There is a shortcut available in some situations: the IRS operates a program that automatically forwards certain federal filings to participating states, covering both requirements in one step. But not every state is in the program and not every form type qualifies.

1099FIRE handles both the federal IRIS filing and the state filing for our clients. Before we file, we confirm which approach applies to your state and your form types so you are not making assumptions that turn out to be wrong. Do not assume that being set up with IRIS automatically covers your state requirement -- let us sort that out as part of the filing process.

Here is one place where IRIS is genuinely better than what it replaced.

Under FIRE, correcting even a single recipient's form often meant preparing and submitting an entirely new batch file covering all affected returns. Under IRIS, each individual form gets its own tracking ID when the IRS accepts it. A correction only touches the specific record that needs to change -- not everything else in the filing.

In practical terms: if the IRS flags that one recipient's address was wrong, the correction applies to just that one form. The other forms in the same batch are not affected, not delayed, and not reprocessed.

1099FIRE stores all of your filing records along with the individual tracking IDs the IRS assigns to each accepted form. If a correction is needed, we can find the right record and handle the refiling. In cases where the correction involves information that changed -- a new address, an updated tax ID, a corrected payment amount -- you will need to provide us with that updated information before we can refile. But the technical process of submitting the correction is ours to manage. When IRS responses come back, we give you a plain-English summary of what was accepted and what needs attention, not a raw IRS error report.

Not yet -- and the window to correct them through FIRE is closing.

Returns that were originally filed through FIRE need to be corrected through FIRE. The IRS has indicated they are working on a process for handling FIRE corrections after the system shuts down, but that process is not finalized and no firm timeline has been published. After December 31, 2026, correcting a FIRE-originated return will become significantly more complicated and uncertain.

This creates real urgency: if you have outstanding corrections from prior years -- wrong Social Security Numbers, incorrect addresses, wrong payment amounts, any errors you know about and have not yet fixed -- the time to file those corrections is now, while FIRE is still running and the process is straightforward.

Look back over your information return filings from the past two or three years. If anything was filed incorrectly and never corrected, call us at (480) 706-6474. We can help you figure out what needs to be corrected and get it filed through FIRE before the system goes dark.

Yes. Beyond filing with the IRS, we can also handle the recipient mailing -- the physical copy of the form that your vendors and contractors receive in January.

This is worth understanding as a separate requirement. Federal law requires you to send a copy of each form you filed directly to the recipient. That copy has its own deadline -- usually January 31 -- and its own penalties if missed or incorrect, completely separate from the IRS filing penalties. Some organizations handle their own mailing; others prefer to have everything managed in one place.

How the mailing service works: after you approve your forms in our portal, we send them to our print-and-mail partner, who handles printing, envelope stuffing, and USPS delivery. Our mailing partner is also SOC 2 certified, so your recipients' personal information is protected through the full process.

Print and mail is available as an add-on service, priced per recipient. Contact us for a quote -- call (480) 706-6474 or email outsource@1099fire.com.

On timing: to meet January 31 deadlines, plan to have your final approved data to us by mid-January. If your timeline is tighter than that, call us and we will work through it with you.

One thing to have ready: accurate recipient mailing addresses. If your address records have gaps or have not been maintained recently, that is worth checking before you need us to mail anything.

Our pricing is organized around form types rather than total volume, which makes it more predictable than most clients expect.

Each submission covers a single form type -- for example, all of your 1099-NEC filings in one file, or all of your 1099-MISC filings in one file. A single submission can include an unlimited number of payers, so whether you are filing for one company or many under the same file, that is one submission. If you file multiple form types, each one is its own submission.

Each submission includes a processing fee that covers account setup, subaccount configuration, secure client portal activation, and the preparation work involved in getting your filing ready for the IRS. Electronic filing with the IRS is included. The per-recipient count in your file determines the variable portion of your cost, which is confirmed once we have your actual numbers -- so you are never paying based on estimates.

Print and mail for recipient copies and TIN Matching are available as add-on services, each priced per recipient.

There is no software to purchase and no annual subscription.

If you are already in discussions with us, you likely have a quote tailored to your form types and recipient counts. If not, we can put one together quickly. Call us at (480) 706-6474 or email outsource@1099fire.com.

The short answer is that data preparation takes longer than most organizations expect the first time, and discovering that in January is a very different experience from discovering it in October.

For organizations making the switch from FIRE for the first time, getting your data ready for IRIS -- separated name fields, verified tax IDs, correct payer information -- often involves looking at records and systems that have not been reviewed with these requirements in mind. Sometimes that is a quick adjustment. Sometimes it uncovers issues that take time to resolve properly. Starting that process early means you have time to do it right.

From our side, early clients get something that January clients simply cannot: a methodical onboarding process with no deadline pressure. We review your data format, help you understand what needs to change, and give you a chance to go through the portal for the first time without a filing deadline a few weeks away. By the time January arrives, the process is familiar and the data is ready.

There is also a broader dynamic worth considering: Tax Year 2026 is the first year IRIS is mandatory for everyone. Every organization that used FIRE is making this transition at the same time. Filing services across the industry will be busiest exactly when deadlines are closest. Engaging early means you are not competing for attention at the most stressful time of year.

For organizations that have historically filed close to the wire: that approach worked with FIRE. Year 1 of mandatory IRIS, with new systems, new data requirements, and potentially significant data preparation work, is not the year to find out whether it still does.

This one requires some honest context about where things stand, because a fair amount is still being figured out -- by the IRS, by payroll software vendors, and by most of the organizations that will be affected.

Recent legislation made certain overtime pay and tip income potentially tax-exempt for eligible workers. The IRS is planning to add new fields to the 1099-NEC to capture those amounts separately. But as of mid-2026, the updated form is still in draft status. The final 2026 form specifications have not been released yet -- not just for 1099-NEC, but across information return forms generally. Most payroll and accounting systems do not currently separate overtime and tips as distinct reportable categories.

What this means practically: for the first filing season, the realistic expectation is that most organizations will continue reporting nonemployee compensation in Box 1 the same way they always have. Corrections can be filed once the IRS finalizes requirements and systems catch up. We will update our templates as soon as final specifications are published and reach out to clients directly with clear guidance on what to do.

One other change from recent legislation worth being aware of: the reporting threshold for contractor payments increased from $600 to $2,000 for payments made after December 31, 2025. If you have vendors you previously included in your 1099 filing because they crossed the $600 mark, check whether they still meet the new threshold before filing.

We are watching both of these developments closely and will communicate with clients as soon as the picture clears.