A major IRS filing change is approaching. If your business issues 1099 forms to independent contractors or vendors, now is the time to prepare.
The Internal Revenue Service (IRS) has announced that its longstanding Filing Information Returns Electronically (FIRE) system is being retired and replaced by the Information Returns Intake System (IRIS).
Starting with the 2027 filing season for tax year 2026, businesses and tax professionals that previously used FIRE will need to transition to IRIS.
For business owners, this means reviewing how 1099 forms are filed, checking contractor information, and making sure the right systems are in place before tax season begins.
Here's what you need to know.
What's Changing with IRS 1099 Filing?
For years, businesses and tax professionals have used FIRE to electronically submit information returns, including many Forms 1099.
The IRS is replacing that system with IRIS, a modernized electronic filing platform designed to simplify the submission process.
IRIS offers several features, including:
A free, web-based portal for filing information returns.
Manual entry or CSV uploads of up to 100 returns at a time.
Downloadable recipient copies of filed forms.
Electronic submission feedback and filing records.
An application-to-application option for businesses and filing providers handling larger volumes.
Important: IRIS is not entirely new. The IRS introduced it in 2023, but the retirement of FIRE makes the transition particularly important for the upcoming filing season.
Key IRS Deadlines You Should Know
The IRS has announced several important dates as FIRE approaches retirement.
November 1, 2026
Last day to submit test information returns through the FIRE testing system.
November 9, 2026
Last day to make changes to existing FIRE Transmitter Control Code (TCC) applications.
November 19, 2026, at 3 PM Eastern Time
Final deadline to submit information returns through FIRE.
January 2027
IRIS becomes the replacement electronic filing system for information returns previously submitted through FIRE.
These transition dates are separate from the normal deadlines for filing 2026 Forms 1099 in 2027.
Why Your Contractor and Vendor Information Matters
A smooth filing process begins with accurate records.
Businesses that pay independent contractors and certain other recipients may be required to issue Forms 1099. These forms generally include information such as the recipient's legal name, address, and Taxpayer Identification Number (TIN).
Incorrect or incomplete records can result in:
Filing errors or rejected submissions.
Delays in correcting information returns.
IRS notices related to incorrect name and TIN combinations.
Potential penalties for failing to meet applicable reporting requirements.
For example, if a contractor provides an incorrect TIN or a business uses a name that does not match IRS records, the business may need to resolve the discrepancy.
The takeaway: Accurate contractor information is just as important as having the right filing software.
5 Steps to Prepare Your Business for 2027
Businesses do not need to wait until January to begin preparing.
1. Review your contractor and vendor records.
Check that names, addresses, and taxpayer identification numbers are complete and accurate.
2. Collect updated Forms W-9 when needed.
If information is missing or outdated, request updated documentation from the appropriate contractors or vendors.
3. Confirm how your business files 1099 forms.
Determine whether your business files directly with the IRS, uses third-party software, or relies on an accountant or tax professional.
4. Check whether you need an IRIS TCC.
Businesses filing directly through IRIS must complete the appropriate application for an IRIS Transmitter Control Code. An existing FIRE TCC does not automatically replace this requirement.
5. Review your 1099 reporting obligations before year-end.
Identify potentially reportable payments, reconcile vendor records, and coordinate with your accountant to determine which forms are required.
Taking these steps early can help reduce unnecessary complications during filing season.
Does Every Business Need to Register for IRIS?
Not necessarily.
If your accountant, tax professional, or third-party filing provider handles your electronic 1099 submissions, they may manage the IRIS transition on your behalf.
However, businesses should still confirm that their filing provider is prepared for the change.
Even when a third party handles the filing process, businesses must ensure their applicable tax reporting obligations are met.
Don't Wait Until Tax Season to Prepare
The transition from FIRE to IRIS is an important change to federal information return filing.
While the new platform is designed to modernize the process, businesses still need accurate records, proper documentation, and a reliable filing workflow.
With the 2027 filing season approaching, now is a good time to review your processes and address potential issues.
At Virtual CPAs, we help business owners stay informed, organized, and prepared for changing tax requirements.
Whether you need assistance with 1099 reporting, year-end accounting, or ongoing tax planning, our team is here to help.
Disclaimer: This article is for general informational purposes only and does not constitute tax or legal advice. Reporting requirements and filing obligations vary by business circumstances. Consult a qualified tax professional for guidance specific to your situation.