IRS Now Offers Two 1099 E-File Systems

As discussed in our posts on June 1, 2023 and June 13, 2023, the threshold for the e-file mandate for Forms W2 and 1099 has been lowered to 10, effective for forms to be filed for the 2023 tax year, beginning on or after January 1, 2024.

At the same time, the IRS has added a new system as an option to be used to e-file Forms 1099, while still offering the system that was already in place.

Years ago, the IRS established the Filing Information Returns Electronically (FIRE) system to be used to e-file Forms 1099. This year, the IRS introduced a second, alternative system through which Forms 1099 can be e-filed. This system is called the Information Returns Intake System (IRIS).

Practitioners who use the FIRE system must have separate software to create the electronic files to be used to e-file Forms 1099. CFS Tax Software Inc. provides such software for practitioners, and we highly recommend their products.

Alternatively, the IRS has indicated that the new IRIS system allows users to create the Forms 1099 to be e-filed directly on the IRIS platform, apparently without the need for other software.

Information about FIRE is available at: https://www.irs.gov/e-file-providers/filing-information-returns-electronically-fire

Information about IRIS is available at: IRS opens free portal to file information returns; new electronic option can reduce millions of paper Forms 1099 estimated to be filed by businesses in 2023 | Internal Revenue Service

As discussed in our post on June 13, 2023, practitioners who have previously registered to e-file Forms 1099 using the FIRE system may need to file a new application in order to continue to use the FIRE system.