The Complete Guide to the IRS FIRE to IRIS Transition (2026)

The End of FIRE

The IRS has officially announced the end of FIRE. After nearly four decades as the backbone of electronic information return filing, the Filing Information Returns Electronically (FIRE) system will shut down on December 31, 2026. Every organization that files 1099s, 1098s, or other information returns electronically will need to transition to the IRS's replacement: the Information Returns Intake System, or IRIS.

If you file 1099s for your business or your clients, this isn't a distant concern. Tax Year 2025 is the last year you can file through FIRE. Tax Year 2026 returns, due in early 2027, must go through IRIS. That means your processes, your software, and your team need to be ready well before then.

This guide covers everything you need to know: what's changing, what the timeline looks like, and exactly how to prepare.

What Is FIRE, and Why Is It Going Away?

FIRE has been the IRS's electronic filing system for information returns since the late 1980s. It accepts data in a fixed-width ASCII format defined by IRS Publication 1220. If you've ever filed 1099s electronically, your data was almost certainly transmitted through FIRE, either directly or through a third-party vendor.

The system has served its purpose, but it's aging infrastructure. FIRE lacks real-time validation, offers limited error feedback, and uses a flat-file format that's increasingly out of step with modern data standards. The IRS decided to modernize.

What Is IRIS?

IRIS is the IRS's modern replacement for FIRE. Built on current technology, it accepts data in structured XML format and provides several improvements over FIRE:

• Real-time validation. IRIS checks your data during submission, not after. You get immediate feedback on errors instead of waiting days for a status report.
• Two filing methods. A web-based portal (the IRIS Taxpayer Portal) for organizations filing fewer than 100 returns, and an Application-to-Application (A2A) channel for high-volume filers who want direct system integration.
• Better record management. IRIS stores filed forms and lets you download recipient copies, request extensions, and file corrections, all within the system.
• Structured data. XML format means cleaner data handling, with separate fields for first name, middle name, last name, and business name (FIRE lumped names into a single combined field).

The Timeline: Key Dates You Need to Know

The IRS is encouraging early adoption. If you can start filing through IRIS for Tax Year 2025, you'll have a full filing season to work through any issues before FIRE goes dark.

What's Changing: FIRE vs. IRIS at a Glance

Do You Need a New TCC?

If you plan to transmit returns directly to IRIS yourself via the A2A channel, yes. Your existing FIRE Transmitter Control Code (TCC) does not work with IRIS. You must apply for a new IRIS-specific TCC through the IRS e-Services portal.

However, not everyone needs their own TCC:

• Using the IRIS Taxpayer Portal (the free web-based option for smaller filers): No TCC required.
• Using a third-party transmitter like Morado, Sovos, or Avalara: Your transmitter holds the TCC. You don't need to apply for one yourself.
• Filing directly via A2A: You need your own TCC.

If you do need a TCC, the process involves:

1. Register or log into e-Services at IRS.gov.
2. Apply for an IRIS TCC. You'll select your role: Transmitter, Issuer, or Software Developer.
3. Complete identity verification. The IRS requires Responsible Official and Contact information with identity proofing.
4. Receive your TCC. It will initially be issued in "Test" status. You must pass Assurance Testing (ATS) before it's activated for production filing.

If you're filing directly, don't wait on this. The application process takes time, and you'll need your TCC before you can test or file.

Understanding the IRIS XML Schema

If your organization files via A2A (the API method), the shift from Publication 1220's flat-file format to IRIS XML schemas is the biggest technical change you'll face.

Key things to know about the XML schema:

• Schema packages are distributed through the IRS Secure Object Repository (SOR). You must have an IRIS TCC to access them.
• Transmissions are identified by a Unique Transmission Identifier (UTID) that you generate.
• Data structure is hierarchical. Each transmission contains submissions, and each submission contains records. This is fundamentally different from FIRE's linear flat-file approach.
• Name handling is stricter. IRIS requires separate XML elements for first name, middle name/initial, last name, and suffix. If your current data combines names into a single field, you'll need to parse them before submission.
• Validation rules are enforced at submission. IRIS checks TIN formatting, amount fields, and required elements in real time.

For organizations currently using Publication 1220 format, this means updating your data export pipelines, reformatting name fields, and generating valid XML that conforms to the IRS schema.

IRIS ATS Testing: What to Expect

Before you can file production returns through IRIS A2A, you must pass the Assurance Testing System (ATS). Here's how it works:

• ATS opens annually in the fall (typically October/November).
• Software developers must submit test files with five submissions, each containing two records (10 records total). All must receive an "Accepted" status.
• Transmitters and Issuers must complete a one-time communication test.
• Use test TINs only. All TINs in ATS must begin with three zeros (e.g., 000-11-1111). Never submit real taxpayer data in the test environment.
• Once you pass ATS, your TCC status moves from "Test" to "Production," and you can begin filing live returns.

Plan to complete ATS well before filing season. If issues come up during testing, you'll want time to resolve them without the pressure of approaching deadlines.

What This Means for Different Filers

If you file fewer than 100 returns: The IRIS Taxpayer Portal is a free, web-based option. You can manually enter return data or upload a CSV. No TCC is required for portal-only filing, but you'll still need to understand the new data requirements (separated name fields, for example).

If you file 100 to 5,000+ returns: You'll likely want to use the A2A channel for efficiency. This requires an IRIS TCC, passing ATS, and updating your data pipelines to produce valid XML. If you currently rely on a vendor or software platform, confirm that they support IRIS A2A filing.

If you're a 1099 consultant serving multiple clients: The transition multiplies across every client engagement. Each client's data needs to be formatted for IRIS. If you're using software that handles the formatting, verify IRIS support. If you're building files manually or with custom tools, budget significant time for the XML conversion.

The State Filing Wrinkle

While the IRS is moving to IRIS, most states still accept (or require) the old FIRE/Publication 1220 format for state-level information return filings. This means you may need to maintain the ability to produce data in both formats: XML for federal IRIS filing and ASCII for state filing.

Check your state requirements. Some states participate in the Combined Federal/State Filing (CF/SF) program, which may simplify things. But don't assume that your IRIS filing automatically covers state obligations.

How to Prepare: Your Transition Checklist

Here's a practical checklist to get ready:

• Apply for an IRIS TCC if you plan to file directly via A2A and don't have one yet. (If you use a third-party transmitter like Morado, they handle this for you.)
• Confirm your software supports IRIS. Contact your vendor or check their documentation.
• Audit your data quality. IRIS is stricter on name fields, TIN formatting, and required elements. Clean up your data now.
• Test in ATS. Once ATS opens, run your test files early in the window.
• Plan for dual formatting if you have state filing obligations that still use Publication 1220 format.
• Consider filing Tax Year 2025 through IRIS as a trial run while FIRE is still available as a backup.
• Train your team. Anyone involved in information return preparation or submission needs to understand the new system.
• Review your timeline. Don't wait until Q4 2026 to start this process.

How Morado Handles the Transition

Morado's platform already files directly to the IRS through IRIS. When you upload your data (CSVs, Excel files, W-9 PDFs), Morado handles the XML formatting, TIN validation, name field parsing, and submission through the IRIS A2A channel automatically.

You don't need to learn the XML schema, apply for your own TCC, or worry about ATS testing. Morado manages the technical complexity so you can focus on getting your data right and meeting your deadlines.

If you're currently using FIRE-based tools or manual processes, Morado can replace that workflow entirely. If you're using Sovos, Avalara, or another platform, Morado can also complement your existing setup by handling the IRIS filing while you continue using your current tools for data preparation.

What Comes Next

The FIRE to IRIS transition is the biggest change to information return filing in decades. The IRS is also planning to expand IRIS to cover additional form types, including 1042-S and newer forms like 1099-DA. The platform will continue to evolve.

The organizations that prepare early will have the smoothest filing seasons. Those that wait until the last minute will face compressed timelines, potential filing delays, and penalties for late submissions.

Start now. Confirm your filing method, test your workflows, and make sure your tools are ready.