IRS Announces New Online Filing Portal for Forms 1099

In late January 2023, the IRS announced the opening of a new online portal where businesses can file Form 1099 series information returns, for free.  The new system, called the Information Returns Intake System (IRIS), is available to all businesses but is expected to be particularly useful for small businesses that currently file their information returns by paper.  It is anticipated that IRIS will help lessen IRS backlogs in the future as more businesses choose electronic over paper filing.

IRIS is free, secure, and requires no special software on the part of the user.  Filers using the system will be able to create, upload, edit, and view information, as well as download completed copies of Forms 1099 for distribution and verification.  Users can either type in the necessary information or upload a file using a downloadable template.

IRIS offers many benefits to users, including:

• Security standards to keep your information safe
• Automatic detection of filing errors and alerts for missing information
• Ability to submit extensions and make corrections to forms filed through the platform
• IRS acknowledgment of receipt as early as 48 hours after filing
• Saving of issuer information from year to year and also prior years
• Reduction in postage and other office expenses associated with paper returns

IRIS is now available to accept Forms 1099 for the tax year 2022 and later and enrollment for businesses to use the system is open.  The current online filing system, called the Filing Information Returns Electronically (FIRE) system, requires special software and will remain available for filing Forms 1099 and other information returns through at least the 2023 filing season.

©2023 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.