The IRS has announced that businesses can now file Forms 1099 using a new online portal called the Information Returns Intake System, or IRIS. And it’s just in time since most Forms 1099 are due to taxpayers by January 31, with a copy filed electronically with the IRS by March 31. Of course, since this is tax law, some exceptions apply—it’s always a good idea to check the specific form instructions for applicable due dates.
Currently, you must file electronically if you file 250 or more information returns. Many smaller businesses aren’t there yet and still send Forms 1099 on paper to the IRS. The new portal provides those businesses with an opportunity to file electronically without buying software—however, the portal is available to businesses of all sizes. Any entity with an Employer Identification Number, or EIN, that needs to file Forms 1099 can do so beginning with the calendar year 2022. Best of all? The service is free.
“The IRS is excited to offer any business, especially small companies, a great new way to electronically file their 1099s for free,” said IRS Acting Commissioner Doug O’Donnell. “This simplifies filing for those issuing 1099s and helps recipients receive information timely. The launch of IRIS can help reduce the millions of paper Forms 1099 we project will be filed in 2023 and demonstrates our commitment to finding useful and innovative ways of reducing paperwork on the business community and others issuing 1099s. This is part of the larger effort underway to make improvements and transform operations at the IRS.”
How IRIS Works
IRIS users can create, upload, edit and view information, as well as download completed copies of Forms 1099 for distribution and verification. And, there’s no need to file Form 1096.
The IRS will acknowledge receipt of the Forms in as few as 48 hours. And IRIS will keep issuer information filed through this platform, making confirming and retrieving records convenient.
The IRS says the portal will automatically detect filing errors and provide alerts for missing information. If changes need to be made, filers can submit automatic extensions and make corrections to information returns filed through the platform.
To use IRIS, you’ll need to apply for an IRIS Transmitter Control Code, or TCC. The TCC is a 5-digit code that identifies the business transmitting the returns. Once you receive your TCC, you can log in to IRIS and file.
If that acronym sounds familiar, it’s because a TCC is also used with the Filing Information Returns Electronically—FIRE—system. That system is used to transmit information returns for employers, corporations, partnerships, trusts and estates.
Want to see IRIS in action? You can watch a short instructional video from the IRS (it’s just over three minutes) or check out the paper guide.