The FIRE (Filing Information Returns Electronically) has been the long-standing electronic filing system for information returns. But the IRS is targeting to retire it in favor of a more modern platform, the IRIS (Information Returns Intake System), by the end of December 2026. This clearly indicates that for tax year 2026 (filed in early 2027), IRIS will be the intake system for your FIRE-related information returns.
So, if you've built your workflows and integrations around FIRE, you can't wait for the filing season to figure out how to go about it, even if the goal of IRIS is to make the process smoother. The solution? Start now. Because the FIRE to IRIS transition is not just another software update. It's a change in how information returns are created, validated, submitted, and defended.
The more fragmented the tax reporting process is, the easier it is for errors to slip through unnoticed until they become filing and compliance issues.
Why Is FIRE Being Retired?
While FIRE has served as the backbone of electronic filing for decades, its limitations have become increasingly apparent in an evolving and data-driven regulatory environment. Some of its limitations are:
- Delayed feedback: FIRE operates on a batch-processing model where filers have to often wait 24 to 48 hours for acknowledgment or error feedback.
- Rigid data formatting: The system relies on the Publication 1220 ASCII flat-file format, which requires every record to follow an exact character layout, offering zero flexibility when working with varied data sources.
- Cumbersome corrections: Under FIRE, making corrections often involves resubmitting files rather than updating individual records. This adds time and complexity to the process.
- Scalability issues: As an older system, FIRE's architecture makes it difficult to scale during peak filing seasons, especially for organizations managing high-volume submissions.
A Closer Look at What IRIS Changes
IRIS is not just an update to FIRE. It is a complete technological overhaul. Here are some of its key features:
- Structured data format: IRIS moves away from legacy flat files to XML schemas and CSV templates. Structured formats where data is organized into distinct, clearly defined fields, making it easier to validate and catch errors early.
- Real-time data validation: IRIS performs validation checks immediately at the point of submission, flagging formatting errors, missing fields, and data inconsistencies instantly.
- Flexible filing options: Small filers can use a straightforward web portal with no special software required, while high-volume filers can use a robust Application-to-Application (A2A) API for automatic, hands-off filing.
- Easier corrections: IRIS allows filers to fix specific individual records without needing to resubmit or replace an entire file.
IRIS Filing Readiness Is Not a Single Team's Problem
IRIS breaks departmental silos, which means a data collection failure in AP now results in a filing rejection in IT.
AP Teams (Data Quality)
IRIS has less tolerance for data issues at submission than FIRE did. W-9s, TINs, addresses need to be accurate and updated well before filing season and not validated when tax season arrives. If payee documentation is still collected through ad hoc processes or maintained in outdated records, that's the first gap to close.
Tax Teams (Risk & Controls)
IRIS validation is immediate (surface errors during filing), which means tax teams need to be ready to act on errors at the time of submission, not after the fact. Review workflows, exception handling, and documentation standards need to be defined in advance, not improvised under deadline pressure.
IT Teams (Integration)
IRIS's A2A channel submits data via API, a different pattern than FIRE's batch uploads. IT teams need to assess whether current ERP and finance integrations can support that model, how data extraction and formatting will need to change, and whether testing infrastructure is in place to catch errors before they reach the IRS.
Finance Teams (Visibility)
They need real-time visibility into filing status, exceptions, and audit trails. If issues surface late, the ability to respond quickly depends on having data that's accessible and current.
Is Your Team Prepared for IRIS? Start With These Questions
Before your team gets deep into implementation, these questions will help you understand where you're ready and where you're not.
- How do we currently file, and which return types do we cover?
- How do we generally format and validate data?
- How dependent is our workflow on FIRE?
- Can our current systems support API-based submissions?
- How does our team catch and handle filing errors?
These questions won't give you a complete transition plan, but they'll tell you where your real gaps are. And that's a good starting point.
You can also rely on this IRIS readiness checklist to make the transition easier:
- Validate TINs early to reduce the risk of B-Notices and confirm whether W-9 and W-8 documentation is current for all payees.
- Identify every form type your organization files and verify IRIS support for each.
- Document how filing workflows are currently initiated, reviewed, and approved.
- Define ownership of each step across AP, tax, and IT functions.
- Evaluate whether current systems can support structured data flows compatible with IRIS.
- Review federal and state filing requirements, as some states have independent systems with their own timelines.
- Review how to handle errors and rejected filings under IRIS before it happens in real time.
- Confirm that any filing platform or vendor you use has completed or has a clear plan for IRIS integration.
- Run end-to-end tests of data flows and filing processes before the filing season begins.
- Don't forget to get your IRIS Transmitter Control Code (TCC) as your old FIRE TCC won't work. You need TCC to access the Assurance Testing System (ATS) and start integration testing. Also, account for the possible 45-day processing window.
How Tax1099 Enterprise Gets Your Team IRIS-Ready
The shift to IRIS introduces new technical requirements that add real operational burden for enterprise teams managing this internally. Tax1099 Enterprise handles that complexity, so teams aren't rebuilding filing infrastructure from scratch.
- Structured payee data management: Payee information can be collected and maintained in a consistent format, reducing the manual effort of year-end cleanup and producing data that IRIS expects at submission.
- TIN matching and early validation: Real-time TIN matching and smart validation happen earlier in the process before errors have the chance to become B-Notices or rejected filings.
- Defined workflow controls: Review, approval, and submission steps are managed within a structured workflow. Multi-user permissions and role-based access give different teams the appropriate level of access and accountability.
- Filing status visibility: You can monitor filings, track exceptions, and act on issues in real time instead of waiting for downstream errors to surface later.
- Integration depth: Tax1099 supports API-based integrations, SFTP, and 12+ no-code ERP and accounting connectors. This means it fits into existing enterprise architecture rather than requiring significant system changes. And it supports the shift toward A2A filing that IRIS enables.
- Continuous compliance updates: As IRS schemas and requirements change, updates are handled within the platform automatically. Your team stays compliant without having to track, interpret, and implement every regulatory change manually.
Final Thoughts
FIRE's retirement is happening, whether you like it or not. The organizations that come out of this transition well will mostly be the ones that start early, get the data right, define workflows, align their teams, and treat IRIS readiness as an operational priority. That's the work. So, start now and make sure your organization is ready.