The IRS recently announced the opening of the Information Returns Intake System (IRIS) portal, which will allow organizations and individuals to file 1099 information returns free of charge. Although just recently released, IRIS is available to file 2022 returns required to be filed in 2023 (up to 100 forms per submission). According to the IRS, IRIS is secure and does not require specialized software. With IRIS, the IRS hopes to simplify the 1099 filing process, facilitate more timely reporting, improve reporting accuracy, and reduce the cost for payers required to report. In addition, it hopes to reduce the millions of 1099 forms typically filed on paper each year.
Although IRIS is currently available, information returns cannot be immediately prepared without advance preparation. To use IRIS, the IRS does require filers to register for a transmitter control code (TCC), which enables the IRS to validate filer identity. Registering for a TCC involves an application available on the IRS website. It’s important to note that receiving a TCC can take up to 45 days to process and, as such, should be applied for well in advance of filing deadlines. The application requires certain information, including:
- Organizational structure
- Employer Identification Number as the system will not accept Social Security Numbers (SSNs) or Individual Taxpayer Identification Numbers (ITINs)
- Legal business name and type
- Doing business as name when it’s different from the legal business name (if applicable)
- Phone number
- Address (not a post office box)
- Mailing address (when different than business address)
- Designation of a responsible official, including:
- SSN or ITIN
- Date of birth
- Contact information, including email address, position/title, and phone number
- Identification of role
- Issuer: Is a person filing only for their business?
- Transmitter: Is a person filing for their own business and other businesses or multiple businesses?
Once a TCC is obtained, a payer will be able to create an IRIS username and password, which will allow them to begin filing 1099 forms and preparing recipient copies for distribution.
IRIS will be able to file 1099 information returns for 2022 and beyond. Many original and corrected 1099 form types can be filed through IRIS, including some of the more common forms (1099-NEC, 1099-MISC, 1099-INT, and 1099-DIV). The full list of forms that can be filed is available on the IRS website.
While the IRIS portal facilitates the filing of federal 1099 information returns, it’s important to note that many states participate in the IRS Combined Federal/State Filing (CF/SF) Program. Once enrolled, this program authorizes the IRS to share information return data with the individual state, essentially simplifying state information return filing requirements. The IRIS portal does allow payers to report withholdings and payments for up to two states per recipient, which is reported back to participating states. While not all states participate in the CF/SF program, some states have no separate filing requirement. Even when using IRIS, careful consideration should be given to state reporting. A list of states participating in the CF/SF program is provided below:
The IRS reports additional IRIS benefits in its portal information guide (Publication 5717), including:
- User-friendly, menu-driven dashboard guiding the preparation process
- Ability to hand-key data for minimal form preparation
- CSV uploads for larger numbers of forms
- Rapid filing confirmation (as little as 48 hours)
- Downloadable recipient copies for simplified distribution
- Data retention for streamlined subsequent filing
- Ability to file corrected forms and request certain extensions
According to the IRS, IRIS is not intended to initially replace the Filing Information Returns Electronically (FIRE) portal, and both portals will be available for the 2023 filing season.
IRIS offers another filing alternative for organizations to file their 1099 forms electronically and at no cost. While some filing deadlines have passed for 2022 forms, some forms can still be timely filed through this system even when factoring in the wait time for a TCC.
For 2022 information returns filed in 2023, the IRS currently requires the electronic filing of information returns for those payers filing more than 250 returns of the same type. For 2023 returns required to be filed in 2024, recent regulations have significantly reduced this requirement to 10 forms (combined for all form types). This is a significant change and is going to require many more organizations to electronically file. The use of a readily available, free information return reporting portal (IRIS) coupled with these reduced reporting thresholds creates great opportunity for organizations to ease the burdens of electronic filing.
If you would like more information on IRIS or 1099 filing requirements, please reach out to a professional at FORVIS or submit the Contact Us form below.