IRS IRIS Transition: What Core, Performance, and Premier Customers Need to Know

The IRS is modernizing information return filing by replacing the Filing Information Returns Electronically (FIRE) system with the Information Returns Intake System (IRIS). Beginning with Tax Year 2026 (forms filed in 2027), information returns submitted through Yearli will be processed through the IRS's modernized IRIS platform.

While this change occurs behind the scenes, businesses using Core, Performance, or Premier should understand how IRIS changes the way filing errors are identified and communicated.

A Faster Validation Process

Under the legacy FIRE system, the IRS generally accepted filings first and performed Name/TIN validation later. If a mismatch was found, businesses often did not learn about it until they received a CP2100 or CP2100A notice months after filing.

With IRIS, validation occurs at the time of submission. Name and Taxpayer Identification Number (TIN) inconsistencies are identified immediately, allowing businesses to address potential issues sooner and reduce the risk of receiving CP2100 or CP2100A notices.

New Filing Statuses You May See

As filings move through IRIS, Core, Performance, and Premier users may encounter new status messages related to Name/TIN validation issues.

Accepted

The filing was successfully processed, no validation issues were detected, and no further action is required.

Rejected

The IRS rejected the submission, there can be a variety of reasons for a rejection, but typically this occurs because of a payer-level Name/TIN validation issue.
When a filing receives a Rejected status:

• The issue must be corrected.
• The submission must be resubmitted.
• The filing will not be considered timely until a successful submission is received by the IRS.

Corrections Needed

The filing was accepted by the IRS, but a potential issue was found. This will likely be due to a payee/recipient Name/TIN mismatch.

• When a filing receives a Corrections Needed status:
• The filing was accepted by the IRS as of the original submission date.
• Businesses should review the information submitted and compare it to their records.
• Payees may need to be contacted to verify their information.
• If it is determined that a correction is needed, Corrections should be submitted as soon as possible
  Organizations that do not address identified mismatches may still receive a CP2100 or CP2100A notice from the IRS.

Why Name/TIN Mismatches Occur

Many validation issues are caused by small data inconsistencies rather than completely incorrect information.
Common examples include:

• Corporation vs. Corp.
• Missing suffixes such as Jr., Sr., or III
• Legal names versus nicknames (Robert Smith vs. Bob Smith)
• Business name changes that have not been updated with the IRS
• Extra spaces, punctuation, or special characters
• Hyphens, apostrophes, and ampersands used differently than IRS records
• Filing under a DBA rather than the legal entity name
• Using an EIN with an individual's name
• Using an SSN with a business name

Even minor differences can trigger a name/TIN mismatch under IRIS.

Best Practices Before Filing

Whether you use Core, Performance, or Premier, taking time to validate payee information before filing can help reduce rejections and corrections.

Request Updated W-9s

Ask vendors and recipients to provide their most current Form W-9 before filing season begins.

Match Names Exactly

The legal name should match IRS records exactly as shown on the W-9.

Use TIN Validation Tools

TIN Matching can help identify many issues before filing. This is especially valuable for businesses managing larger filing volumes.

Review Data Imports Carefully

Imported data should be reviewed for abbreviations, spelling variations, punctuation differences, and outdated records that could create validation issues.

Understanding the W-9

When reviewing Form W-9 information, pay special attention to Line 1.

Line 1: Legal Name

This is the most important field for IRS matching purposes. The name entered should be the legal name on file with the IRS and should match character-for-character.

Line 2: Business Name/DBA

This field may be used for a DBA or trade name. The IRS does not use this field when performing Name/TIN matching.

When a Mismatch Persists

If a business has verified its W-9 information but still receives a Corrections Needed status, additional IRS documentation can help confirm the correct legal name and TIN combination.

Potential sources include:

• The original SS-4 Application for Employer Identification Number
• IRS CP575 EIN Confirmation Letter
• IRS 147C EIN Verification Letter
• Quarterly or annual IRS filings such as Forms 941 or 945
• IRS Business Tax Account records and Entity Transcripts

These documents can help verify the exact legal name and taxpayer identification information the IRS has on file.

Preparing for the Future of Information Return Filing
The transition to IRIS represents a significant shift in how information return filings are validated and processed. While the new system may surface Name/TIN issues sooner than businesses experienced under FIRE, that visibility can help organizations correct problems faster and improve filing accuracy.

For Yearli Core, Performance, and Premier customers, the key to a smooth transition is proactive validation of payee data before filing season begins. Taking a few extra steps up front can help reduce rejections, minimize correction activity, and support successful, compliant filings under the IRS's new IRIS filing framework.