If your team still depends on FIRE to file information returns, you will be facing a forced transition that will impact how you prepare, format, and submit filings in the next filing season.<\/p>\n
The IRS has targeted the retirement of Filing Information Returns Electronically (FIRE) system for filing information returns starting tax year 2026. This is one of the most significant updates to information return reporting in decades. For the 2027 filing season, FIRE will be replaced by a newer, more modern system called IRIS or Information Returns Intake System.<\/p>\n
Are your systems ready for this complete overhaul? Here\u2019s all the information you need to check your readiness for the next filing season to avoid any disruption to your filing process.<\/p>\n
Since the IRS has decided to retire FIRE in lieu of IRIS, you can expect IRIS to serve as the only intake system for all information returns previously processed through FIRE for your 2027 filing season.<\/p>\n
FIRE has long been used by the IRS to file information returns. It has been around for decades and relies on an outdated batch-based process where users had to upload compressed files (with a size limit of 100MB) into a legacy mainframe-style interface and then wait 24 to 48 hours for an acknowledgment or error feedback.<\/p>\n
It’s flat-file (Publication 1220) format, which, even though it was revolutionary for its time, and its delayed correction process cannot keep up with modern reporting and security needs. FIRE\u2019s architecture also made it difficult to scale anytime there was a spike in filing volume.<\/p>\n
IRIS is the modern and upgraded version that has been introduced to address all the issues that FIRE had. It offers an XML-based file format, API support, real-time validation, and enhanced status tracking for a modern and faster filing experience.<\/p>\n
FIRE used a flat-file system that was rigid, where every record had to follow an exact character layout. Under IRIS, the new file format follows structured data formats, such as an XML schema and CSV templates, which are more aligned to modern data formatting standards. Data is separated and broken down into distinct fields, which can be clearly identified and validated.<\/p>\n
IRIS offers two main intake channels or filing paths: the Taxpayer Portal and A2A. Each path is suited for a certain type of filer:<\/p>\n
1. IRIS Taxpayer Portal<\/strong><\/p>\n You can manually enter individual forms or CSV files (up to 250 forms per submission) to the IRIS taxpayer portal. This option requires strict adherence to IRS formatting guidelines, manual efforts, and repeated uploads, making it time-consuming and harder to scale as filing volume grows.<\/p>\n 2. IRIS Application-to-Application (A2A) for High-Volume Filers<\/strong><\/p>\n For businesses and service providers handling large or recurring filing volumes, IRIS A2A is the preferred and more efficient solution. You can transmit up to 100MB per transmission, connect your internal systems directly to IRIS using secure APIs, and submit returns in XML format. This intake path requires either special software or a third-party provider to use. This method is built for automation, accuracy and scalability, eliminating filing errors and manual uploads.<\/p>\n The correction process under FIRE used a less interactive validation model that gave file-level feedback only after submission, rather than step-by-step validation. In the modern IRIS system, the schema, content, and business rules are validated in real time during processing. It alerts you immediately if any data is incorrect or missing. IRIS also allows you to fix only the specific records that have issues instead of redoing the entire file.<\/p>\n The existing FIRE TCC (Transmitter Control Code) cannot be used with IRIS. You must apply for a new IRIS TCC through the IRS e-services portal, which can take upto 45 days. A2A users who need a TCC to access the Assurance Testing System (ATS) for integration testing must apply well in advance since these filers need an API Client ID and undergo IRS ATS testing.<\/p>\n This transition from FIRE to IRIS is not only going to affect high-volume filers but also small filers.. The IRS e-filing mandate states that anyone filing 10 or more information returns must file electronically. And since IRIS is now mandatory for information returns filed in tax year 2026, even small filers filing on the IRIS taxpayer portal must adapt to this new reality. Small filers also need to apply for an IRIS TCC, review the IRS filing requirements, and become familiar with the IRIS Taxpayer Portal workflow.<\/p>\n For high volume filers, filing returns on the IRIS A2A system requires a lot of effort. Applying for an IRIS TCC can take up to 45 days. Data needs to be reformatted into an XML schema. TIN and name have to be validated, and rejections must be handled on-site.<\/p>\n Post-submission, you\u2019ll need to manage corrections\/extensions via the portal since there is no batch resubmits like in FIRE, furnish recipient copies using new data prep, and navigate state filings that may require use of both IRIS and FIRE to remain compliant. All of these steps require long-term planning, testing, and error-proofing to remain compliant.<\/p>\n Your team\u2019s readiness depends on a number of factors. Transitioning from FIRE to IRIS is not a one-click-and-done process. It takes proper planning and a clear action plan. Before moving from FIRE to IRIS for information return filing, ask your team these questions:<\/p>\n 1. How do we file information returns and which returns are we expected to file?<\/p>\n 2. How dependent is our current workflow on FIRE?<\/p>\n 3. Do you have any plans for the 2027 filing season?<\/p>\n 4. What is our IRIS setup status today?<\/p>\n 5. How does our team catch filing errors?<\/p>\n These questions help you understand not just the filing method used and which return types your team covers. But it also helps you understand your team\u2019s transition-risk signal and future-readiness as well as the quality of data being used.<\/p>\n Despite being promoted as an accessible system designed for direct submission, IRIS portal does have a couple of limitations. The process of filing with IRIS portal requires a lot more operational effort from a team.<\/p>\n Data must be carefully reformatted and standardized according to IRS CSV templates in order to be submitted to the IRIS Taxpayer Portal. Submissions have to be validated in real-time, meaning any error that has been detected must be fixed immediately before moving forward. While this does improve data accuracy, it also slows down your information return filing process. And for teams with low bandwidth, this takes them away from other work. Add to that, the need for a TCC, which can take weeks to obtain, further diminishes the \u201cquick and easy\u201d promise.<\/p>\n So, while IRIS portal may still work for simple use cases, some low-volume filers may find that the time and effort involved outweigh the cost savings.<\/p>\n For high-volume filers, the issue is not cost savings, but technical scalability. Since CSV uploads for IRIS portal are limited to 250 returns, high-volume filers are pushed towards using the IRIS A2A system, which require more technical resources and ongoing effort. A2A filing requires an API Client ID, a separate IRIS TCC, and Assurance Testing before you can start filing.<\/p>\n IRIS portal is a great tool for straightforward filings. But once you start scaling and the number of returns or form types increases, the process gets considerably more demanding.<\/p>\n As IRIS becomes the sole e-filing system in the 2027 filing season, the case for using a managed workflow or third-party service like Tax1099 only grows stronger. By using a managed tool like Tax1099, the complicated behind the scenes process involving IRIS onboarding, TCC registration, and form-by-form validation can be handled, so that you and your team can stay compliant and be fully transition-ready for the 2027 FIRE retirement.<\/p>\n Tax1099 has already migrated to IRIS, meaning our users enjoy a seamless filing experience with no extra transition costs or technical headaches (compared to other software that are still relying on FIRE). This head start will give Tax1099 users stability, a predictable platform performance, an established support and knowledge base, and no downtime risks that come with major system migrations.<\/p>\n Take the FIRE Retirement Readiness Check<\/strong><\/p>\n See where your current 1099 workflow may break before the 2027 filing season.<\/p>\nChanges to Data Validation & Correction Process<\/h4>\n
New TCC Requirement<\/h4>\n
Why This Transition matters Even For Smaller Filers<\/h2>\n
5 Questions You Should Ask Your Team Before Switching To IRIS<\/h2>\n
Does the IRIS Portal Actually Fit Your Filing Profile?<\/h2>\n
Is the IRIS Portal Enough for Your Filing Needs?<\/h2>\n
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