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:
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.
The legal group at Robert J. Fedor, Esq., LLC provides strategic solutions to complicated tax problems for businesses and individual clients around the world. When you need focused compliance advice, are considering bankruptcy relief, or if you receive correspondence from the IRS—contact us or call 800-579-0997.