Tax year 2026 - what's changing

The key changes to 1099 reporting, in one place.

FIRE is being retired, and IRIS is taking over. Form thresholds are changing. And all states won't follow the same federal rules. See what applies to your forms, and file them all through Tax1099.

See what's changing

Bookmark this page for all new updates through filing season.

What the 2026' changes mean when it's time to file.

Each update affects a different part of the job: the threshold that triggers a form, the method used to submit returns to the IRS, and whether your state conforms to the new federal requirements.

01FIRE to IRIS transition

FIRE is retiring. IRIS takes its place.

For years, federal 1099s reached the IRS through FIRE. It's being retired, and IRIS is the new e-filing system, with new access and transmission setup to match.

02OBBBA state conformity

Your state may not follow the federal rules.

For tips, overtime, vehicle-loan interest and the senior deduction, each state may follow, modify, delay, or break from OBBBA. When a state return is required, CFSF covers some; others you'll file directly.

03Reporting thresholds

The $2,000 threshold applies differently by form.

For payments made in 2026, the federal reporting threshold increases from $600 to $2,000 for Form 1099-NEC and selected Form 1099-MISC payment types. Other 1099-MISC categories continue to follow their own thresholds. Form 1099-K follows its own reporting requirements.

2026 reporting changes01 · FIRE to IRIS transition
01 · FIRE to IRIS transition

The filing connection behind the workflow changes.

Prepare returns in Tax1099 while the platform handles federal transmission through IRIS.

Federal filing routeManaged within Tax1099
Your team Prepare

Create and review returns in the familiar Tax1099 workflow.

→
Tax1099 Transmit

Tax1099 manages the filing connection and sends federal returns through IRIS.

→
IRS filing system IRIS

Statuses and corrections return to the same workflow.

No separate IRIS transmission process for your team to manage.
02 · OBBBA state conformity

First determine the state rule. Then determine the filing route.

A state can respond differently to the federal provision and may require a different filing route.

Federal starting pointOBBBA provision
FollowApplies the federal provision.
ModifyChanges the rule or timing.
DelayWaits for state action.
SeparateKeeps different state treatment.
If a state return is required
CFSFFor participating states and supported forms.
Direct state filingWhen the obligation is not covered through CFSF.
03 · Reporting thresholds

What are the 2026 requirements for each form?

The threshold moves to $2,000 for 1099-NEC and selected 1099-MISC payments. 1099-K uses a separate test.

Form2026 federal rule
1099-NEC
$2,000
1099-MISC
$2,000 for selected payment typesOther box-specific thresholds apply
1099-K
More than $20,000 and more than 200 transactionsFor third-party settlement organizations; payment-card reporting follows different rules
State filing

Meeting the federal threshold doesn't settle every state's requirement. Some states set their own thresholds and filing rules.

Let Tax1099 keep up with the changes.

New thresholds, the switch to IRIS, and state-by-state differences, all handled in one connected workflow so your filings stay right.

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State conformity tracker

See how OBBBA treatment varies by state.

FIRE to IRIS readiness

Know where your 1099 process standsbefore FIRE retires.

The IRIS Readiness Checker shows what's already working, where the gaps are, and what to fix next.

Check your readiness
IRIS Readiness Checker result showing a risk exposure score of 50 out of 100 on a low-to-high risk scale, a key observation, and risk flags including FIRE dependence and correction risk
Resource center

Everything you need to get ready for 2026.

Prepare for FIRE retirement and the move to IRIS
FIRE to IRIS webinar artwork
On-demand webinar

FIRE to IRIS

Compare manual and software filing, state complexity and process readiness.

Watch the webinar ↗
Article

Is your 1099 process ready for the IRS shift?

Review the workflow changes filing teams should understand before FIRE retires.

Read the article ↗
Quick explains

Understand the changes, one short video at a time.

Watch quick explanations of FIRE retirement, IRIS readiness, OBBBA and other information reporting updates.

Understand OBBBA and state impact
Whitepaper

Prepare for OBBBA changes before filing begins.

A practical guide to new thresholds, state conformity, documentation controls and filing readiness.

Read the whitepaper ↗
OBBBA changes whitepaper cover
OBBBA Reality Check webinar artwork
On-demand webinar

OBBBA Reality Check

See what the $2,000 threshold changed for federal and state reporting.

Watch the webinar ↗

Frequently asked questions about 2026 changes.

Explore key questions about OBBBA reporting, state requirements and the transition from FIRE to IRIS.

What is changing for 1099 reporting in tax year 2026?

Three important developments are reshaping information reporting. The federal reporting threshold increases for certain payments, states may apply different thresholds and filing requirements, and the IRS is transitioning electronic information return filing from FIRE to IRIS. Businesses should review their reporting scope, state obligations and filing process before the 2027 filing season.

What is IRIS, and how is it different from FIRE?

IRIS is the IRS's modernized information return filing system. It replaces FIRE's legacy submission process with structured data formats, enhanced validation and improved status tracking. Tax1099 manages this technical filing workflow behind the scenes, allowing businesses to prepare, validate and track their returns through a familiar platform.

When is the IRS retiring the FIRE system?

FIRE will stop accepting information returns after it shuts down at the end of 2026. Beginning with tax year 2026 and the 2027 filing season, IRIS will become the IRS intake system for supported information returns. Tax1099 has already moved its filing workflow to IRIS, helping customers transition without rebuilding their existing process.

What is the new 1099 reporting threshold for 2026?

For payments made during calendar year 2026, the federal reporting threshold for certain payments reported on Forms 1099-NEC and 1099-MISC increases from $600 to $2,000. The threshold is expected to be adjusted for inflation after 2026.

Does the $2,000 threshold apply to every Form 1099?

No. The new threshold applies to specific payment types covered by the updated federal rules. Other information returns may continue to have different reporting thresholds, so businesses should evaluate each form and payment category separately.

Will every state follow the new federal reporting threshold?

Not necessarily. States may adopt the federal threshold, retain their existing requirements or apply separate filing rules. Tax1099 helps businesses review state-specific forms, thresholds and deadlines, while managing supported federal and state filings through one platform.

Do I need an IRIS TCC if I file with Tax1099?

No. When you file through Tax1099, you do not need to apply for a separate IRIS Transmitter Control Code. Tax1099 uses its own transmitter credentials and manages validation, transmission and filing status tracking for you.

How can Tax1099 help businesses prepare for 2026 reporting changes?

Tax1099 brings federal and state filing, TIN matching, recipient delivery, corrections and filing status tracking into one workflow. It also manages the transition to IRIS, helping businesses prepare for the 2027 filing season without developing or maintaining a direct IRS integration.

Bring your 1099 reporting into one workflow.

Your federal and state data, filings, recipient copies, and corrections, in one place.

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