The long-awaited 1099 filing platform has gone live on the IRS website. The 1099 filing platform named IRIS allows users to download and print 1099s suitable for distribution and allow users to file 1099s with the IRS and state tax agencies that participate in the Combined Federal/State Filing Program (see Payroll Guide ¶5042). This includes Forms 1099-NEC used to report nonemployee compensation. Currently, IRIS accepts Forms 1099 only for tax year 2022 and later [IR 2023-14, 1/25/2023].
Background.
Section 2102 of the Taxpayer First Act (TFA) requires the IRS to develop an internet platform by January 1, 2023, that will allow taxpayers to electronically file Forms 1099. The new platform will allow users to prepare, file, provide Forms 1099 suitable for distribution, and create and maintain tax records.
Benefits of IRIS.
The IRS notes that switching from paper to electronic filing through IRIS comes with a number of benefits including accurate filings, the ability to submit automatic extensions and corrections, receipt acknowledgement in as little as 48 hours, and year-to-year information storage through IRIS.
IRIS Transmitter Control Code.
Users must obtain an IRIS Transmitter Control Code (TCC). FIRE TCCs will not be accepted on the new system. Issuers, transmitters, and software developers are eligible to apply for an IRIS TCC. Each authorized user must have an account and an e-Services PIN.
Bulk filers.
IRIS allows up to 100 forms to uploaded via a.csv file. Multiple.csv files can be uploaded. However, the Application to Application (A2A) channel for bulk filing will not be available until May 2023. Bulk filers should continue to use the FIRE system for the 2023 processing year. However, the schema package is available to users who have obtained an IRIS TCC.
Additional resources.
The IRS released IRS Publication 5717 that provides guidance to users of IRIS (see Payroll Update, 12/05/2022). A video is available, featuring the entry of Form 1099-NEC.
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