What You Need to Know about the IRIS System for 2023 Reporting

This blog was last updated on October 18, 2023

Another tax information reporting season is approaching quickly. As businesses begin the process of filing information with the IRS, there are some important updates that need to be kept in mind. If you previously filed forms in the 1099 series with the IRS via the File Information Returns Electronically (FIRE) system, you will now have the option to file with the new Information Returns Intake System (IRIS) for 2023 reporting.

What is IRIS?

The IRS launched a new information return filing system called IRIS in January 2023. The new system will eventually replace the old FIRE system, but the IRS has provided very few details about the timeline of that change. Here’s what we do know about the impact on the 2023 filing season:

• You do not have to use IRIS – you can still leverage FIRE. The IRS is still supporting all form types on FIRE for the 2023 season, so you do not have to convert to IRIS if your business is not ready to do so yet.
• Limited forms are supported. IRIS currently supports the Form 1099 series, so other information returns that businesses are required to issue and file (i.g., Forms 1098, 1095, 1042-S and others) must be filed in other IRS systems.
• New TCC is needed to use IRIS. Businesses must obtain a new Transmitter Control Code (TCC) to file returns in IRIS. You cannot leverage existing FIRE TCCs for filing in IRIS. To apply for a TCC, you must submit a request in the IR Application for TCC system and it can take up to 45 days for the IRS to process.
• Not ready for large volume filers. Users can manually create 1099s in IRIS and can upload up to 100 records at a time via .csv file formats. The IRS is working with software filers to develop a system-to-system process for submitting large volumes of information returns and is expected to have functionality available sometime in early 2024.

How can Sovos help?

Utilizing Sovos’ software and managed services can take the reporting confusion out of your hands.  Sovos employees were at the forefront of the IRS system change to IRIS and understand the details needed to file efficiently with the new filing system. Our managed services team can take the process out of your hands, without the need for your employees to jump through hoops to gain access to the new system and avoid reporting problems during filing season.