The IRS has introduced that companies can now file Types 1099 utilizing a brand new on-line portal known as the Data Returns Consumption System, or IRIS. And it is simply in time since most Types 1099 are as a consequence of taxpayers by January 31, with a duplicate filed electronically with the IRS by March 31. In fact, since that is tax regulation, some exceptions apply—it’s all the time a good suggestion to test the precise type directions for relevant due dates.

Submitting Electronically

At present, you should file electronically when you file 250 or extra info returns. Many smaller companies aren’t there but and nonetheless ship Types 1099 on paper to the IRS. The brand new portal offers these companies with a chance to file electronically with out shopping for software program—nonetheless, the portal is obtainable to companies of all sizes. Any entity with an Employer Identification Quantity, or EIN, that should file Types 1099 can accomplish that starting with the calendar yr 2022. Better of all? The service is free.

“The IRS is worked up to supply any enterprise, particularly small corporations, an important new method to electronically file their 1099s without cost,” stated IRS Performing Commissioner Doug O’Donnell. “This simplifies submitting for these issuing 1099s and helps recipients obtain info well timed. The launch of IRIS may also help scale back the thousands and thousands of paper Types 1099 we undertaking might be filed in 2023 and demonstrates our dedication to discovering helpful and modern methods of decreasing paperwork on the enterprise neighborhood and others issuing 1099s. That is a part of the bigger effort underway to make enhancements and rework operations on the IRS.”

How IRIS Works

IRIS customers can create, add, edit and look at info, in addition to obtain accomplished copies of Types 1099 for distribution and verification. And, there isn’t any must file Type 1096.

The IRS will acknowledge receipt of the Types in as few as 48 hours. And IRIS will maintain issuer info filed by means of this platform, making confirming and retrieving data handy.

The IRS says the portal will robotically detect submitting errors and supply alerts for lacking info. If adjustments should be made, filers can submit automated extensions and make corrections to info returns filed by means of the platform.

To make use of IRIS, you’ll want to use for an IRIS Transmitter Management Code, or TCC. The TCC is a 5-digit code that identifies the enterprise transmitting the returns. When you obtain your TCC, you’ll be able to log in to IRIS and file.

If that acronym sounds acquainted, it’s as a result of a TCC can also be used with the Submitting Data Returns Electronically—FIRE—system. That system is used to transmit info returns for employers, companies, partnerships, trusts and estates.

Extra Data

Wish to see IRIS in motion? You possibly can watch a brief educational video from the IRS (it’s simply over three minutes) or try the paper information.