The clock is ticking for organisations that submit information returns electronically. With the IRS set to retire its long-standing FIRE (Filing Information Returns Electronically) system on 31 December 2026, withholding agents and compliance teams are being urged to act now — not later — according to RegTech firm Comply Exchange.
The RegTech company recently delved into what withholding agents need to do before the 2027 deadline.
FIRE has been the backbone of electronic information return submissions for more than three decades, but the system was built for a technological era that has long since passed. In its place, the IRS has developed the Information Returns Intake System, known as IRIS, a modernised platform designed to handle growing reporting volumes with greater efficiency and accuracy.
Unlike its predecessor, which required filers to upload specially formatted text files, IRIS offers several submission routes. These include a web portal aimed at smaller filers, an application-to-application (A2A) transmission channel for software providers and large-scale filers, and integrations through approved reporting platforms and tax software providers, Comply Exchange said.
One of the most significant upgrades IRIS brings is real-time data validation. Under FIRE, filers could wait hours or even days to find out whether a submission had been accepted or rejected. IRIS performs those checks immediately at the point of submission, flagging formatting errors, missing fields, and data inconsistencies on the spot. For organisations that have historically relied on manual processes or fragmented workflows, this shift raises the bar considerably.
Since its launch in 2023, IRIS has already processed millions of information returns — a sign of the IRS’s long-term commitment to the platform. The forms affected by the migration span the full 1099 series, including Form 1099-MISC, 1099-NEC, 1099-INT, 1099-DIV, and 1099-B, among others. Notably, the IRS has also expanded IRIS to cover Form 1042-S, with electronic filing through the new system available from 1 January 2026 for 2025 returns due on 15 March 2026.
On the timeline, Comply Exchange highlights several milestones that organisations should have on their radar. During the 2026 filing season, both FIRE and IRIS will operate concurrently, giving filers a window to test new workflows before the full switchover. That opportunity should not be wasted. From filing season 2027 onwards, IRIS will be the sole required intake system for electronic Form 1099 and 1042-S submissions.
There is also a practical administrative step that many filers are reportedly overlooking: IRIS requires a separate Transmitter Control Code (TCC). Existing FIRE TCCs do not transfer across, and the application process through the IRS e-Services system can take up to 45 days. Organisations that leave this to the last minute risk missing critical filing deadlines.
Comply Exchange argues that preparing for IRIS goes well beyond securing a new TCC. The firm points out that the system’s real-time validation requirements mean that the data feeding into reporting workflows — vendor details, account holder information, and tax documentation — must be accurate and complete before submission, not corrected after the fact. This represents a meaningful operational shift for teams that have previously caught and fixed errors downstream.
For more insights into IRIS, read the full story here.
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