IRS FIRE System Retirement: Understanding the Transition to IRIS

The IRS has announced the retirement of its FIRE (Filing Information Returns Electronically) system, marking the end of a filing platform that has served taxpayers for over four decades. Organizations that file information returns electronically need to understand the transition timeline, technical requirements, and preparation steps.

What’s Changing and When

Tax Year 2025 (Filing Season 2026): Final year for FIRE system filings

December 31, 2026: FIRE system officially retires

Tax Year 2026 (Filing Season 2027): IRIS becomes the sole platform for electronic information return filing

The IRS has confirmed these dates through its IRIS Working Group meetings and official communications. Both systems will operate concurrently through the 2026 filing season, but the IRS encourages early transition to IRIS.

What Is IRIS?

The Information Returns Intake System (IRIS) is the IRS’s modernized platform for receiving information returns. IRIS represents a complete technological upgrade from FIRE, built on current technology standards rather than the 1980s-era infrastructure that powered FIRE.

Key differences between FIRE and IRIS include:

Data Format: IRIS uses Extensible Markup Language (XML) format, replacing FIRE’s ASCII format based on Publication 1220 specifications.

Data Structure: IRIS requires more granular data fields. For example, individual names must be submitted in separate first name and last name fields, whereas FIRE accepted combined name fields.

Validation: IRIS performs real-time validation at submission, identifying errors immediately rather than after processing.

Security: IRIS incorporates enhanced security protocols aligned with current cybersecurity standards.

Forms Covered by IRIS

As of Tax Year 2025, IRIS accepts most information returns previously filed through FIRE, including:

1099 series forms (1099-MISC, 1099-NEC, 1099-INT, 1099-DIV, and others)
1098 series forms (1098, 1098-T, 1098-E, 1098-C)
W-2G forms
3921 and 3922 forms
5498 series forms

The IRS plans to add support for Forms 1042-S, 1099-DA, and 5498-QA for Tax Year 2025 forms filed in 2026.

Note that the Affordable Care Act Information Return (AIR) system, which handles ACA forms like 1095-B and 1095-C, does not yet have a published retirement date. However, the IRS has indicated intentions to eventually consolidate all information return filing into IRIS.

Technical Requirements for IRIS Filing

Organizations planning to file through IRIS directly need to complete several prerequisite steps.

Obtaining an IRIS Transmitter Control Code

Every organization filing through IRIS must obtain an IRIS-specific Transmitter Control Code (TCC). Existing FIRE TCCs cannot be used with IRIS.

The application process requires:

Completion of the IRIS Application for TCC through the IRS e-Services platform
Individual authentication using a Social Security Number or Individual Tax Identification Number
Business information and contact details
Processing time of up to 45 business days

TCCs remain active as long as they are used at least once every three consecutive years. Inactive TCCs are automatically deleted from the system.

Understanding Filing Methods

IRIS offers two filing methods:

Taxpayer Portal (User Interface): A web-based interface where filers can manually enter return information or upload CSV files containing return data. This no-cost option is suitable for organizations with lower filing volumes. CSV templates are available on the IRIS portal.

Application-to-Application (A2A): An automated filing method using API connections to submit XML files directly to IRIS. A2A is designed for high-volume filers or organizations with existing systems that can generate XML files programmatically. A2A requires additional setup including obtaining an API Client ID and configuring secure connections.

Many organizations find that working with an experienced tax form processing service provider can simplify the transition and ongoing compliance requirements, especially for companies managing high volumes of information returns.

Assurance Testing Requirements

Before submitting production returns through IRIS, filers must complete successful test transmissions through the IRIS Assurance Testing System (ATS). This testing environment allows organizations to validate their file formats and processes before filing actual returns.

Testing requirements include:

Submitting properly formatted test files
Receiving and resolving any error messages
Confirming successful acceptance of test transmissions

Organizations developing their own filing software or working with software vendors should complete ATS testing well before filing deadlines to allow time for resolving any issues.

XML Schema and Business Rules

IRIS uses XML schemas published by the IRS that define the structure and validation rules for information return data. These schemas are updated annually and are available through the IRS Secure Object Repository (SOR).

Key technical considerations:

Schema packages include detailed specifications for each form type
Business rules define valid data combinations and required fields
Filers must use the correct schema version for the applicable tax year
Different form types within the same submission must follow their respective specifications

The IRS publishes schema packages and documentation through Publication 5718 (Information Returns Intake System Electronic Filing Specifications for A2A).

Data Mapping Considerations

Organizations transitioning from FIRE to IRIS need to adjust their data formatting. Significant changes include:

Name Fields: FIRE accepted combined name fields (first and last name together). IRIS requires separate fields for first name, middle name/initial, and last name.

Address Formatting: IRIS has more specific requirements for address field population and validation.

TIN Matching: IRIS performs enhanced Taxpayer Identification Number validation at submission, catching mismatches earlier in the process.

Numeric Fields: Certain fields that accepted alphanumeric characters in FIRE may have stricter numeric-only requirements in IRIS.

Organizations should review their data sources and extraction processes to ensure they can populate all required IRIS fields correctly. For companies handling large volumes of forms or complex data scenarios, partnering with a professional 1099 processing service can help ensure accurate data mapping and compliance.

Corrections and Amendments

An important technical detail: corrections must be filed through the same system as the original return.

Returns originally filed through FIRE require corrections through FIRE (even after FIRE retirement for returns filed during the FIRE era)
Returns filed through IRIS require corrections through IRIS

This means organizations may need to maintain access to both systems during a transition period to handle corrections for returns filed in previous years.

State Filing Considerations

The FIRE to IRIS transition applies to federal information return filing with the IRS. State-level information return filing operates independently, and many states continue to accept or require Publication 1220 format (the ASCII format used by FIRE) rather than IRIS’s XML format.

Organizations filing information returns at both federal and state levels may need to:

Support multiple data formats (XML for federal IRIS, ASCII for state filing)
Manage separate filing processes and deadlines
Track which states accept electronic filing and their specific requirements

The IRS Combined Federal/State Filing Program allows certain information returns to be transmitted to participating states through IRIS, but not all states participate and not all form types are eligible.

Preparation Timeline

Organizations should consider these timeframes when planning their transition:

Immediate Actions:

Review current filing volumes and methods
Evaluate whether current software or systems support IRIS
Determine which filing method (Portal or A2A) best fits organizational needs
Contact a tax reporting service provider to discuss outsourcing options

45+ Days Before Filing Deadline:

Submit IRIS TCC application if filing independently
Begin data mapping and format conversion work
Identify and address any data source issues

30+ Days Before Filing Deadline:

Complete ATS testing with sample data
Resolve any validation errors or formatting issues
Confirm all systems are ready for production filing

Before December 31, 2026:

Make final determination about long-term filing approach
Complete transition to IRIS to avoid last-minute complications

Resources and Support

The IRS provides several resources for organizations transitioning to IRIS:

IRIS Working Group Meetings: Regular meetings where the IRS shares updates, answers questions, and provides guidance. Meeting notes are published on IRS.gov.

IRIS Help Desk: Available Monday through Friday, 7:30 AM to 7:00 PM Eastern Time at 866-937-4130 (toll-free) or 470-769-5100 (international). The help desk provides technical guidance for electronic filing but does not provide tax law advice or help completing specific form fields.

IRS Publications:

IRS.gov/IRIS: The official IRIS webpage with links to all resources, documentation, and updates.

Common Questions

Do I need to reapply for a TCC every year?

No. Once obtained, an IRIS TCC remains valid as long as it’s used at least once every three consecutive years.

Can I use third-party software to file through IRIS?

Yes. Many tax software vendors and payroll providers have updated their systems to support IRIS filing. Organizations using third-party transmitters should confirm their vendor’s IRIS readiness.

What happens if I miss the transition deadline?

After December 31, 2026, FIRE will no longer accept submissions. Organizations that haven’t transitioned to IRIS or arranged alternative filing methods by then will be unable to file electronically for Tax Year 2026 returns due in 2027.

Can I file some returns through FIRE and others through IRIS?

Yes, during the 2026 filing season both systems operate concurrently. However, organizations must track which returns were filed through which system for correction purposes.

Do I need separate TCCs for FIRE and IRIS?

Yes. FIRE TCCs and IRIS TCCs are system-specific and not interchangeable.

Filing Options for Information Returns

While this article focuses on the technical aspects of IRIS, organizations have multiple options for maintaining compliance:

Direct Filing: Organizations can file directly through IRIS using either the Taxpayer Portal or A2A method after obtaining credentials and completing necessary setup.

Third-Party Software: Many payroll and accounting software packages include information return filing capabilities and have updated to support IRIS.

Service Providers: IRS-authorized e-file service providers file returns on behalf of their clients, handling all technical requirements using the provider’s own credentials. This option eliminates the need for internal technical expertise and ensures compliance with evolving IRS requirements.

The best approach depends on organizational resources, technical capabilities, filing volumes, and internal priorities. For many organizations, outsourcing 1099 and W-2 processing provides the most reliable and cost-effective solution.

Planning Your Transition

The FIRE system retirement represents a significant transition in information return filing. While the technical changes are substantial, the IRS has provided a reasonable transition window and extensive resources to support organizations making the change.

Organizations should begin evaluating their transition approach now rather than waiting until late 2026. Understanding the technical requirements, timeline constraints, and available options allows for informed decision-making and adequate preparation time.

Whether filing directly through IRIS or using alternative methods, the key is ensuring compliance with the new requirements by the January 2027 deadline.

Need Help Evaluating Your Options?

As an IRS-authorized e-file provider since 2005, Tab Service Company helps organizations navigate information return compliance through our comprehensive tax reporting solutions. If you’re evaluating your approach to the FIRE retirement and would like to discuss how outsourcing might fit your situation, we’re happy to provide a consultation. Visit tabservice.com or call 312-527-4306 to learn more.

IRS FIRE System Retirement 2026: Understanding the Transition to IRIS in 2027

October 20, 2025