New IRIS online portal for e-filing Forms 1099 is live

You can now file Form 1099 series information returns using the Information Returns Intake System (IRIS) online portal. Step one is enrolling with IRS by clicking here.

IRS is touting the free electronic filing service, which doesn’t require any special software, as secure, accurate and particularly helpful for small businesses that typically file paper 1099s.

“This simplifies filing for those issuing 1099s and helps recipients receive information (in a timely manner). 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 agency’s acting commissioner Doug O’Donnell said in a press release.

What IRIS can do for you

IRIS-enrolled businesses of all sizes can use the new platform to create, upload, edit and view information, plus download completed copies of 1099 series forms for verification and recipient distribution, and of course submit it online to IRS.

You can also e-file 1099 series forms in small or large volumes of up to 100 by either keying in the information or uploading a CSV file with the use of a downloadable template. For now, IRIS is accepting Forms 1099 only for tax year 2022 and later.

Other great things about IRIS:

• E-file security standards to safeguard information
• Automatic detection of filing errors and alerts for missing information
• The ability to submit automatic extensions and make corrections to information returns filed through the platform
• IRS acknowledges receipt as soon as 48 hours after filing
• The platform has a tool that keeps issuer information from year to year, and prior years, filed through this platform, which can save time for 1099 filers, and
• Less trips to the post office and reduced office expenses for paper, postage and storage space.

IRIS also has a section for reporting state withholdings and payments for up to two states. If you don’t need it, just click the Next button.

The Service even has a video that shows step-by-step how to use IRIS. Click here to watch.

Other information return items of note

If your team is more comfortable with IRS’s Filing Information Returns Electronically system, it’ll still be available for bulk filing Forms 1099 and other information returns through at least the 2023 tax filing season.

It’ll also be interesting to see if IRIS will be able to handle heavier traffic when significantly more independent contractors start receiving Form 1099-K after a new lower threshold for reporting third-party payment service transactions takes effect. Under the American Rescue Plan Act, services like Venmo, PayPal, eBay, Etsy and others would have to report business payments amounting to $600 or more per year. The IRS has temporarily delayed this change.