This blog was last updated on June 16, 2025
The IRS has officially confirmed a plan to sunset the FIRE system, marking one of the most significant transformations in information return filing in decades. After serving as the backbone of electronic tax reporting since the 1980s, the Filing Information Returns Electronically (FIRE) system will be decommissioned in January 2027.
That means 2025 is the final tax year that can be filed through FIRE, with all 2026 returns (filed in early 2027) required to use the IRS’s new Information Returns Intake System (IRIS). With just one remaining filing season to complete the transition, the window for preparation is closing fast.
What’s Replacing FIRE? Meet IRIS, the New IRS XML Filing Platform
The IRS FIRE system relied on the legacy 1220 flat file format—a relatively compact and simple way to transmit data. IRIS, in contrast, is built with modern technology in mind and requires data to be transmitted using XML files, which are:
- Much larger in size, often requiring more storage and bandwidth.
- More complex, demanding new tools or dedicated IT resources to convert legacy file formats into IRS-compliant XML.
FIRE vs. IRIS: Key Differences
| Aspect | FIRE System (Legacy) | IRIS System (New) |
| File Format | 1220 flat file | XML |
| Data Complexity | Simple, compact | Complex, larger XML schemas |
| System Interface | Legacy infrastructure | API-based or portal submission |
| TCC Requirements | One TCC | Separate TCCs for portal vs A2A |
Key Changes in IRS Information Return Filing Requirements
As you prepare for the FIRE sunset and transition to IRIS, here are four essential considerations:
First, middle and last name field separation
Unlike the 1220 format, IRIS requires separate fields for first and last names. You’ll need logic in place to split names without creating unnecessary Name/TIN mismatches, which can lead to costly penalties.
IRIS Taxpayer Portal
This web-based filing system lets you e-file up to 100 returns at a time, enter data manually or by .csv upload. Filers are required to submit via Application to Application (A2A) when submitting 100 or more returns.
IRIS Application to Application (A2A)
When submitting 100 or more returns , IRIS A2A enables automated XML submissions via API. To participate, you must:
- Apply for an IRIS A2A-specific Transmitter Control Code (TCC)
- Obtain an API Client ID
- Download the latest schema package
- Complete the IRIS Assurance Testing System (ATS) submission process
System Conversion Planning
If your current filings are handled through homegrown systems or core platforms, it’s critical to begin assessing and planning how these systems will support the new IRIS XML structure and IRS A2A connection point. Waiting too long could put you at risk of non-compliance.
Dual-Format Tax Filing: The State-Level Compliance Challenge
While the IRS moves forward with IRIS, most states still rely on the FIRE format to process information returns. As of early 2025, only a handful of states have adopted the IRIS schema. This means that businesses may need to maintain dual filing capabilities—submitting returns in IRIS XML to the IRS and FIRE format to individual states.
How Sovos is Leading the Way with IRIS
Sovos has been deeply involved in the development and rollout of IRIS from the beginning:
- Our involvement began in 2021 through active participation in industry feedback initiatives.
- In 2023, we joined the IRIS early adopter program, offering direct insights to the IRS to help refine the platform.
- Following our acquisition of Aatrix in early 2024, Sovos submitted 2.6 million forms to IRIS—representing 22% of total volume received by the IRS and marking the largest contribution from any filer.
With over two years of IRIS filing experience, Sovos is fully equipped to support the new IRS filing requirements. We will continue to support IRIS filings across all of our go-forward solutions, providing customers with the confidence and compliance coverage they need—both now and in the future.
Ready to Transition from FIRE to IRIS?
The transition from FIRE to IRIS may feel like a distant deadline, but with the technical and operational shifts involved, the time to start planning is immediately.
Here’s where to begin:
- Evaluate your filing volume to determine A2A vs portal use
- Apply for IRIS-specific TCCs and API credentials
- Assess your systems for XML readiness and data field mapping
- Create a project timeline with testing, fallback plans, and go-live milestones
- Consider a compliance partner to manage complexity and reduce risk
Sovos is here to help you make that transition smoothly and stay ahead of the compliance curve. Contact us today to learn how we can support your transition to IRIS and ensure seamless, secure, and compliant filings—federally and at the state level.
