Important IRS deadlines are approaching, and businesses that file 1099s electronically may need to prepare for a major change.
As business owners focus on closing out 2026, there's another important item to add to the checklist: making sure their tax reporting process is ready for the upcoming filing season.
The Internal Revenue Service (IRS) has announced that it is retiring its Filing Information Returns Electronically (FIRE) system and transitioning users to the Information Returns Intake System (IRIS).
Beginning with the 2027 filing season, businesses and tax professionals currently using FIRE will need to use IRIS to electronically submit information returns for tax year 2026.
While this may sound like a technical change, it can have practical implications for businesses that report payments to independent contractors, vendors, and other recipients.
The key takeaway? Don't wait until January to find out whether your filing process needs to change.
What's Changing With IRS Electronic Filing?
For years, the FIRE system has allowed businesses, payroll providers, and tax professionals to electronically submit certain information returns to the IRS.
These include commonly used forms such as:
Form 1099-NEC: Reports certain payments made to independent contractors and other nonemployees.
Form 1099-MISC: Reports certain payments such as rents, royalties, and miscellaneous income.
Form 1099-INT: Reports interest income.
Form 1099-DIV: Reports dividends and certain distributions.
With FIRE being retired, the IRS is moving these filings to IRIS, a more modern electronic filing platform.
IRIS offers two main filing options:
IRIS Taxpayer Portal: A free, web-based platform that allows filers to submit up to 100 information returns at a time, either manually or through CSV uploads.
IRIS Application to Application (A2A): A system designed for businesses, service providers, and software platforms that electronically submit larger volumes of information returns.
Businesses already using a tax professional or third-party filing provider should confirm whether their provider is handling the transition.
Important IRS Deadlines Businesses Should Know
The IRS has identified three important dates related to the retirement of FIRE:
November 1, 2026
The last day to submit test information returns through the FIRE Trading Partner Test System.
November 9, 2026
The last day to make changes to existing FIRE applications for Transmitter Control Codes (TCCs).
November 19, 2026, at 3 p.m. Eastern Time
The final deadline for submitting information returns through the FIRE system.
After FIRE closes, businesses that previously used the system will need to transition to IRIS for future filings, including those covering tax year 2026.
These November deadlines concern the FIRE system's retirement. They do not replace the regular 2027 filing deadlines for 2026 information returns.
Does This Change Affect Your Business?
Not every business will need to make changes directly, but it is important to understand who is responsible for your information-return filings.
Your business may be affected if you:
Submit Forms 1099 through the FIRE system.
Use accounting or tax software that currently transmits returns through FIRE.
Manage information-return filings internally.
Work with independent contractors, freelancers, or vendors whose payments may require reporting.
Rely on a third-party provider whose filing process may be changing.
For example, imagine a business that regularly hires freelance designers, consultants, or marketing contractors.
At year-end, the business may need to issue Forms 1099-NEC for qualifying payments.
If its current filing process depends on FIRE, someone will need to ensure those returns can be transmitted through IRIS when the 2027 filing season begins.
The good news is that businesses using an accountant or filing service may not have to manage the technical transition themselves.
However, confirming that responsibility now can help prevent last-minute filing problems.
What Should Business Owners Do Before Year-End?
The transition is an opportunity to review your business's reporting procedures before the busy tax season begins.
Here are five important steps.
1. Review How Your Business Currently Files 1099s
Determine whether your business submits information returns directly, through accounting software, or through a tax professional.
Understanding your current process will help identify whether any changes are necessary.
2. Confirm Your Filing System Is Ready
If your business currently files directly through FIRE, you will need to prepare for IRIS.
This generally includes applying for a new IRIS Transmitter Control Code (TCC). Your existing FIRE TCC cannot be used for IRIS.
The IRS advises allowing up to 45 calendar days for processing an IRIS TCC application, so early preparation matters.
3. Organize Contractor and Vendor Records
Accurate information is essential regardless of which filing platform you use.
Review your payment records, confirm that required taxpayer information has been collected, and make sure your records reflect the correct amounts paid.
Incomplete or inaccurate records can create problems even when the filing technology works correctly.
4. Coordinate With Your Accountant or Filing Provider
If someone else prepares your information returns, ask whether their systems are ready for the transition.
Confirm who is responsible for preparing, transmitting, and reviewing the filings.
A simple conversation now can prevent confusion later.
5. Review Your Reporting Obligations
Technology may be changing, but accurate reporting remains essential.
Businesses should still determine which payments require information returns, whether applicable electronic filing requirements apply, and when forms must be furnished to recipients and filed with the IRS.
In general, businesses required to file 10 or more information returns in aggregate must file electronically, subject to applicable exceptions and waivers.
What Happens If Your Business Isn't Prepared?
A delayed transition does not automatically mean your business will face a penalty.
However, failing to prepare could create unnecessary challenges during filing season, such as:
Delays accessing the correct filing system.
Difficulty obtaining an IRIS TCC in time.
Software compatibility or data formatting problems.
Last-minute corrections to contractor information.
Late or inaccurate information-return filings.
Late, missing, or incorrect filings can result in IRS penalties when applicable.
The retirement of FIRE does not eliminate those responsibilities.
For business owners, the goal should be simple: identify potential filing issues before they become deadline problems.
Why This Matters Beyond the Filing System
The FIRE-to-IRIS transition is a reminder that tax compliance involves more than preparing a return once a year.
Businesses need reliable financial records, organized payment information, accurate reporting procedures, and a clear understanding of changing IRS requirements.
Even a routine administrative change can become stressful when records are incomplete or responsibilities are unclear.
Taking time to review your procedures now can make the upcoming filing season more manageable.
And more importantly, it allows business owners to spend less time dealing with preventable tax reporting issues and more time focusing on running their businesses.
Prepare Now, Not When Filing Season Begins
With the FIRE system's retirement approaching, October is a good time to make sure your business understands what is changing and what steps may be necessary.
Whether you manage contractor payments, work with outside vendors, or rely on a tax professional for your filings, preparation can make all the difference.
At The Virtual CPAs, we believe good tax planning starts long before a deadline.
Our team helps business owners navigate tax requirements, maintain organized financial records, and make informed decisions with greater confidence.
Not sure whether these changes affect your business?
Connect with The Virtual CPAs to review your reporting obligations and prepare for the upcoming tax season.
Disclaimer: This article is for general informational purposes only and does not constitute personalized tax, legal, or financial advice. IRS requirements and filing procedures may change. Consult a qualified tax professional regarding your specific business circumstances.