How to Get Ready for IRIS

A big change is coming for businesses that e-file information returns such as Forms 1099, 1098, 1042-S and 5498. For tax year 2026, filing in 2027, the IRS is retiring the Filing Information Returns Electronically (FIRE) system it has used for decades. The cutoff for filing through FIRE is Nov. 19, 2026, at 3 p.m. ET. The Information Returns Intake System  (IRIS) will be the only system starting Jan. 1, 2027, whether for  current-year returns, prior-year returns or corrections. 

Most changes will occur behind the scenes, but businesses may notice one significant change at submission time. FIRE accepted filings first and validated them later, but IRIS is different. IRIS automatically validates names and taxpayer identification numbers (TINs) upon submission. If it flags a mismatch, it may reject filings or accept them only conditionally. That requires extra vigilance to ensure filings are accepted and timely

What changes for filers 
With FIRE, filings were accepted and name and TIN validation was performed later. A discrepancy wouldn’t delay acceptance, though it could result in a CP2100 or CP2100A notice months later.

Because IRIS checks names and TINs upon submission, an error might cause the filing to be Rejected, Partially Accepted or Accepted with Errors. For example, if the issuer’s name doesn’t match its TIN, the filing could be rejected. Or, if a recipient’s name and TIN don’t match, the filing could be Accepted with Errors. “The key difference with IRIS is that businesses receive visibility into these issues sooner, making early preparation more important than ever,” said Kyle Janssens, senior manager at Greatland Corp., a provider of W-2, 1099 and 1095 products.

A rejected filing must be corrected and resubmitted, and it isn’t considered timely until it’s successfully filed. A filing that is Accepted with Errors counts as accepted, but the business should check its records and file a correction promptly or risk receiving a CP2100 or CP2100A notice.  

Common reasons for mismatches include abbreviations, suffixes, nicknames, DBAs, punctuation, extra spaces, special characters, or a Social Security number used with a business name. If a mismatch occurs, consult IRS records such as Form SS-4, Notice CP575, Letter 147C, or Form 941 or 945 to confirm the exact name and EIN on file.

Proactive steps before filing season
Businesses can improve their chances of a smooth filing experience by taking a few proactive steps before filing season begins. Doing so can minimize the potential for rejections and time consuming corrections. “Organizations that invest in data quality upfront will generally spend less time troubleshooting and correcting returns during filing season,” said Janssens.

1. Get updated W-9s early 
Ask vendors for updated W-9s as early as possible rather than waiting until January. When preparing filings, double-check that names appear exactly as they do on Line 1 of the W-9, character for character, including any extra spaces. 

2. Use a TIN matching tool 
Payers that have filed certain 1099s at least once in the past two tax years have another option for minimizing TIN validation errors. They can use a free IRS web tool to check the TIN a payee provided against IRS records before filing a return. The tool requires e-Services registration.

3. Review data imports for potential validation issues 
Check payee data that comes in from accounting software, spreadsheets or vendor databases. Some filers may have truncated names to fit the old FIRE format, and records cut short may cause mismatches. Make sure to use the full legal name from Line 1 of the W-9, not a DBA or trade name from Line 2. And check for outdated records for any vendors that may have changed names, merged or changed their business type.

What to know about IRIS TCCs 
Another IRIS change may catch businesses off guard. IRIS  requires its own Transmitter Control Code, or TCC. A FIRE TCC doesn’t carry over, so a business that has filed directly for years must apply for a new one.

Businesses that file their own returns need an IRIS TCC, as do  firms that transmit returns for clients. A typical application can take up to approximately 45 business days to process, so businesses that wait too long to apply may find themselves without a new TCC at submission time. Businesses that file through a provider that transmits under its own TCC generally don’t need one. 

How Yearli helps 
To simplify the IRIS transition, businesses can work with a provider like Yearli, Greatland’s reporting platform. Yearli handles the filing process on behalf of customers, transmitting under its own IRIS TCC and eliminating much of the complexity associated with electronic filing requirements. 

New customers can be onboarded quickly by importing payer and recipient information and preparing returns for electronic submission. If a filing generates an error, Yearli helps customers understand the issue, identify affected records, and resubmit. “As IRS filing requirements continue to evolve, our goal is to help businesses stay compliant without having to become experts in the underlying filing technology,” said Janssens.