IRS to Retire FIRE System by 2026: What Tax Professionals Need to Know About the Move to IRIS

The IRS has officially announced that it will sunset the FIRE system (Filing Information Returns Electronically) after the 2026 tax year. Starting in Filing Season 2027, all filers must use the Information Returns Intake System (IRIS) a modernized platform designed to replace FIRE for information return e-filing.

While the shift reflects the IRS’s long-term digital modernization strategy, it introduces immediate compliance, onboarding, and technical planning challenges for CPAs, payroll teams, banks, insurers, third-party administrators, and government entities.

What’s Being Retired?

The FIRE system has been the backbone of IRS information return e-filing for decades. It supports over a dozen forms, including:

• Form 1099 series (1099-NEC, 1099-MISC, 1099-INT, etc.)

• Form 1098 (Mortgage Interest)

• Form 5498 series (Retirement Reporting)

• Form 1042-S (Foreign Person U.S. Income Reporting)

• Form 8955-SSA (Retirement Plan Participant Information)

  
  

But after Tax Year 2026, FIRE will no longer accept submissions.

What Is IRIS?

The Information Returns Intake System (IRIS) is a browser-based platform built by the IRS to streamline e-filing of information returns. While it's already live for Form 1099 series, it will become the mandatory e-file system for all information returns by 2027.

Key Differences from FIRE:

Feature	FIRE	IRIS
Platform	Legacy desktop/file-transfer based	Web-based portal
Access	Requires application and FIRE TCC	Requires new IRIS Transmitter Control Code (TCC)
Supported Forms	Many 1099s, 1042-S, 5498s, 8955-SSA	Currently 1099s (expanding soon)
Authentication	FIRE credentials (legacy security)	IRS Online Account / ID.me verification
User Interface	File upload only	Upload + real-time submission status and corrections

What You Need to Do Now

1. Register for IRIS Access

Even if you're an existing FIRE user, you'll need to apply for new IRIS credentials and a TCC via the IRS portal:🔗 IRS IRIS Enrollment Page

2. Test Submissions Early

The IRS recommends pilot-testing IRIS for 2025 filings (due in January 2026) to avoid disruption. Forms 1099-NEC and 1099-MISC are already accepted via IRIS.

3. Map Existing Workflows to IRIS Requirements

Third-party preparers and payroll providers will need to:

• Update internal systems to output files in IRIS-compatible formats

• Train staff on real-time validations and correction handling

• Ensure continuity of TIN-matching, B-notice processing, and bulk upload capabilities

  
  

4. Communicate the Change to Clients

Your small business and enterprise clients should be notified this year if you assist with:

• Year-end contractor payments

• Mortgage interest statements

• State reporting via the Combined Federal/State Filing (CF/SF) program, which will also migrate to IRIS

  
  

Compliance Risks

Failure to transition in time could result in:

• Missed filing deadlines

• Inability to submit corrected forms

• Penalties under IRC Section 6721 for failure to file correct information returns

  
  

Final Thoughts

This is one of the most consequential infrastructure transitions the IRS has made in decades and while it’s framed as a technical upgrade, it has deep implications for compliance, workflow management, and taxpayer communication.

Bizora AI can help CPA firms and tax preparers manage this shift by automating IRIS registration tracking, form validation, and e-file reminders across all supported returns.