In a bid to boost customer service, the IRS recently launched a new portal to file required Form 1099 information.
The Information Returns Intake System (IRIS) was launched in January of this year and is aimed at creating a convenient, secure, option for businesses of all sizes that must file Form 1099. A form 1099 is generally required of businesses that made payments to others for a variety of goods and services. Similarly, those who received payments from others should file an appropriate return.
Acting IRS Commissioner Doug O’Donnell said, "The IRS is excited to offer any business, especially small companies, a great new way to electronically file their 1099s for free. 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."
In providing the portal, the IRS hopes to provide benefits that include:
- IRIS will reduce the deluge of paper Form 1099s received by the agency each year, reducing processing time and, hopefully, backlog. As with any form of e-filing, the portal reduces the mailing, storage, and postage costs of continuing to use and submit paper records.
- The portal tracks and maintains 1099s issued from year to year, allowing users to log in and pick up where they left off. Additionally, the IRS plans to acknowledge receipt of filed 1099 Forms in approximately 48 hours, hopefully creating a business-friendly service that users can count on.
- IRIS can identify filing errors and deliver alerts if any information is missing. Filers can also make corrections to forms through the platform and file for automatic extensions.
In the IRIS system, the IRS also gains electronic access to required forms, boosting their compliance capabilities and making it easier to identify fraudulent income tax returns or mismatches between returns filed by taxpayers and the businesses that may have paid them during the year.
Enrollment to the platform is now available and the IRS is hoping early adopters will find the system convenient, easing reliance on the older FIRE system. The IRS bulk filing system will remain in use for at least the next two filing seasons.
In recent years, the IRS has struggled to respond to customer inquiries and process returns and refunds in a timely way. The IRIS system may ease some of the burdens of paper forms if businesses find the portal will be beneficial to them.
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