The IRS FIRE system ends in 2027. Prepare now to switch to the IRIS XML platform for seamless, secure, and efficient 1099 reporting and stay compliant.
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IRS to Retire FIRE System in 2027: What Businesses Need to Know About the Transition to IRIS 

The IRS has officially announced the retirement of the FIRE (Filing Information Returns Electronically) system, a big change in the tax reporting, and one of the most significant updates we have seen in years. After more than 45 years as the standard platform for transmitting information returns, FIRE will be fully decommissioned in January 2027. 

This means that tax year 2025 is the final year businesses and transmitters can file through the FIRE system. Beginning in 2026 (returns filed in early 2027), the IRS’s new Information Returns Intake System (IRIS) will become mandatory for all electronic information return filings. 

With just one filing season left before the switch, it’s time for filers to act. The transition to IRIS isn’t just a change in systems— it marks a significant change in how tax data is submitted, processed, and managed. 

Replacing FIRE with IRIS – the New IRS XML Filing Platform  

FIRE was built around the 1220 flat file format—a compact, fixed-length format that has served electronic reporting since the 1980s. IRIS, on the other hand, uses modern XML-based architecture and introduces a host of new requirements and considerations. 

Upcoming Changes to IRS Filing Requirements 

As businesses prepare to leave FIRE behind, there are several important changes to be aware of when moving to IRIS: 

1. Separate Fields Required for First and Last Names 

Unlike the old 1220 format, IRIS requires first and last names to be entered in separate fields. It might seem like a small change, but it’s important. If your Name/TIN mismatches, it can result in an error in acceptance by the IRS. 

2. Filing Made Simple for Small Businesses 

For small businesses moving away from FIRE, TaxZerone provides a simple and secure way to file information returns without the need for complex systems or technical expertise. Instead of figuring out new processes on your own, you can file directly through our platform with confidence, knowing we’re fully aligned with the latest IRIS standards. 

3. IRIS Application-to-Application (A2A) 

Larger businesses submitting high volumes of returns may consider the IRIS A2A option, which allows automated XML submissions via API. Participation requires: 

  • Apply for a Transmitter Control Code (TCC) specific to IRIS A2A 
  • Get your API Client ID 
  • Download the current version of the schema package. 
  • Finish the submission process through the IRIS Assurance Testing System (ATS) 

Setting up A2A takes time and planning. If you fall into this category, it’s important to start early—or let TaxZerone handle the technical side for you with our end-to-end filing support. 

Start Planning for System Conversion Now 

If your current filing process relies on a custom-built or legacy platform, now is the time to evaluate how it will handle IRIS requirements. XML schema support, name field mapping, and secure API connections all need to be accounted for. Delaying this assessment could lead to a scramble—and potential non-compliance—when FIRE is fully retired. 

Dual-Format Filing: Federal vs. State Returns 

As the IRS transitions to IRIS, most states are still using the FIRE format to handle information returns. By early 2025, only a few states have adopted the IRIS new XML schema. This means many businesses will need to support dual-format filing: 

  • IRIS XML format for the IRS 
  • FIRE flat file format for most states 

Things to Know: FIRE vs IRIS Corrections 

If you’re e-filing information returns with the IRS, it’s important to understand how corrections work between the FIRE and IRIS systems. Here’s what you need to know: 

Use the Same System for Corrections 

  • If you originally filed using the FIRE system, you must submit corrections through FIRE. 
  • If you filed using IRIS, then all corrections must be made through IRIS. 

Note: The IRS does not allow cross-system corrections. 

How TaxZerone Supports Your Transition to IRIS 

TaxZerone is committed to helping businesses adapt confidently to the IRS’s new IRIS (Information Returns Intake System). We actively promote this transition and have already fully updated our platform to align with the latest IRS requirements. 

Whether you’re a small business filing just a few forms or a large enterprise submitting thousands, TaxZerone simplifies the entire process. Users can file directly through our platform without worrying about complex XML formatting or compliance issues—we handle all the technical work behind the scenes. 

With built-in validations, expert support, and secure, real-time processing, TaxZerone ensures your filings are accurate, compliant, and stress-free. From start to finish, we’re here to make your IRIS filing experience seamless and efficient. 

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