Aiming to reduce the number of paper Forms 1099 that it expects to be filed, the IRS announced on Jan. 25 that it has opened an online portal through which these forms can be filed for free.
Calling this portal the Information Returns Intake System (IRIS), the IRS said that this electronic filing service is secure, accurate and requires no special software. Although it is available to businesses of all sizes, the IRS said that IRIS may be especially helpful to small businesses that currently send their 1099 forms on paper to the IRS.
The service requires filers to apply for a Transmitter Control Code (TCC). A business can apply for this code for its own business only (as an issuer), for its business and others (as transmitters), and for software developers.
“The IRS is excited to offer any business, especially small companies, a great new way to electronically file their 1099s for free,” IRS Acting Commissioner Doug O'Donnell said in a statement. “This simplifies filing for those issuing 1099s and helps recipients receive information timely. The launch of IRIS can help reduce the millions of paper Forms 1099 we project will be filed in 2023 and demonstrates our commitment to finding useful and innovative ways of reducing paperwork on the business community and others issuing 1099s. This is part of the larger effort underway to make improvements and transform operations at the IRS.”
The IRS is encouraging any business to e-file through the platform. It stated, "Filers can use the platform to create, upload, edit and view information and download completed copies of 1099-series forms for distribution and verification. With IRIS, businesses can e-file both small and large volumes of 1099-series forms by either keying in the information or uploading a file with the use of a downloadable template." The IRIS is now accepting Forms 1099 only for tax year 2022 and later.
The IRS listed the following as benefits of filing with IRIS:
• E-file security standards keep information safe and protected.
• The portal is an accurate filing method that automatically detects filing errors and provides alerts for missing information.
• Filers can submit automatic extensions and make corrections to information returns filed through the platform.
• The IRS acknowledges receipt of the return in as early as 48 hours.
• The platform keeps issuer information from year to year, and prior years filed through this platform, providing convenience to 1099 filers.
• E-filing eliminates trips to the post office and can reduce office expenses for paper, postage and storage space.
"Available to any business of any size, IRIS should be especially helpful to those that currently send their Forms 1099 to the IRS on paper," IRS Small Business/Self-Employed exam case program manager Mike Maltby said at a press conference, reported Accounting Today. "Filers can use the new IRIS platform to create and submit key information, or upload a file with the use of a downloadable template.”