For tax professionals who prepare information returns, January often brings a different set of filing responsibilities than the traditional income tax season. Businesses need to report payments to independent contractors and other recipients, and those information returns must reach the IRS through the appropriate filing system
For years, the IRS Filing Information Returns Electronically (FIRE) system has been a familiar part of that process. But with FIRE scheduled for retirement in November 2026, firms need to prepare for a transition to the Information Returns Intake System (IRIS).
Understanding IRS FIRE filing, how it differs from other IRS e-file programs, and how it relates to Drake Software® can help firms avoid disruptions as the next filing season approaches.
What Is IRS FIRE Filing?
The IRS FIRE system allows businesses and authorized transmitters to electronically submit information returns, including many Forms 1099, to the IRS.
These forms report certain payments made during the year, such as nonemployee compensation, interest, and other reportable income. Businesses often rely on their accounting software or a tax professional to prepare and transmit them.
FIRE is different from the system used to e-file individual and business income tax returns. For Drake Software customers, that distinction matters.
Drake Tax® handles income tax return preparation and e-filing, while Drake Accounting® supports accounting, payroll, and information-return workflows. A firm that uses both products may need to manage two separate IRS filing processes.
As the IRS moves from FIRE to IRIS, knowing which system handles each type of return is increasingly important.
FIRE vs. MeF: Understanding the Difference
Although both systems support electronic filing, FIRE and Modernized e-File (MeF) serve different purposes.
MeF is the IRS system for electronically filing income tax returns, including Forms 1040, 1065, and 1120. This is the system associated with filing income tax returns through Drake Tax.
FIRE, by contrast, has been used to submit information returns, including supported Forms 1099. These filings are commonly part of a firm’s accounting or payroll services rather than its income tax preparation workflow.
Consider a business client that visits your firm each spring for income tax preparation but also needs to issue Forms 1099-NEC to contractors in January. Those are separate filing responsibilities, even when the same firm handles both.
Keeping FIRE, IRIS, and MeF workflows distinct helps staff use the correct IRS filing system, maintain the appropriate credentials, and track acknowledgments.
What Is the IRS FIRE System Used For?
The IRS FIRE system has traditionally served businesses, tax professionals, and transmitters that need to submit information returns electronically.
Common uses include:
- Filing Forms 1099-NEC and other supported 1099 series forms
- Submitting corrections and replacement files when permitted under IRS rules
- Meeting electronic filing requirements for information returns
- Testing files before transmitting them through the production system
- Coordinating federal information-return filing with applicable state reporting requirements
FIRE requires files to follow specific IRS formatting rules. Accounting software and information-return services help preparers organize payer and recipient information, check for errors, and produce files that meet those requirements.
With FIRE approaching retirement, however, firms should focus on preparing for IRIS rather than establishing new FIRE filing processes.
Why Transmitter Control Codes Matter
One important part of electronic information-return filing is the Transmitter Control Code (TCC).
A TCC identifies the entity authorized to transmit information returns to the IRS. Depending on how a firm files, the transmitter may be the business issuing the forms, a tax professional filing on a client’s behalf, or an authorized third-party service.
Historically, FIRE users obtained a TCC through the IRS Information Returns application process.
A FIRE TCC cannot be usedfor IRIS. Firms should confirm whether they need their own IRIS TCC based on who will transmit the returns and the filing method used. If an IRIS TCC is needed, apply early; the IRS advises allowing up to 45 days for processing.
The IRS is no longer accepting new FIRE TCC applications, although existing applicants may update their information through November 9, 2026.
For firms preparing large volumes of Forms 1099, reviewing TCC requirements before the filing season can help prevent delays when returns are ready to transmit.
How Drake Accounting Supports 1099 e-File
For Drake Software customers, Drake Accounting plays an important role in preparing and managing information returns.
The software supports accounting and payroll workflows, including the information needed to prepare Forms 1099 and other supported filings. Rather than managing these forms separately from their accounting records, firms can use Drake Accounting to organize payer and recipient information and prepare returns for electronic submission.
As the IRS transitions to IRIS, Drake Accounting has expanded its direct IRIS e-filing capabilities for many 1099 series forms, along with Form W-2G, selected Forms 1098, and Form 8809 extensions.
Depending on the form and software version, supported features include electronic transmission, acknowledgment tracking, corrections, and replacements.
These capabilities help firms maintain a more connected information-return workflow, from preparing forms to monitoring their filing status.
Drake Tax continues to use MeF for income tax returns. Firms that provide both income tax preparation and accounting services should maintain clear procedures for each type of filing.
For product-specific details, see the Drake Knowledge Base article What’s New in Drake Accounting.
IRS FIRE Retirement: Important Dates for 2026
The IRS has announced that FIRE will retire as part of its transition to IRIS. This change affects businesses, tax professionals, and software transmitters that have relied on FIRE to submit information returns.
Several deadlines are especially important for firms preparing for the 2027 filing season.
| Date | What Tax Professionals Need to Know |
| November 1, 2026 | Last day to submit test files through the FIRE Trading Partner Test System. |
| November 9, 2026 | Last day to make changes to existing FIRE Information Returns TCC applications. |
| November 19, 2026, at 3 p.m. ET | Final deadline to submit production information returns through FIRE. |
| 2027 filing season | IRIS becomes the electronic filing system for tax year 2026 information returns previously supported by FIRE. |
Effective January 1, 2027, IRIS will be the only IRS electronic filing system for information returns previously handled through FIRE, including applicable prior-year filings and corrections.
The IRS offers two IRIS filing methods:
IRIS Taxpayer Portal: A free, web-based option that allows filers to submit up to 100 information returns at a time, either by entering information manually or uploading a CSV file.
IRIS Application-to-Application (A2A): A filing method designed for software-based transmission, including larger volumes of information returns.
The appropriate method depends on how a firm prepares and submits its forms.
Tax professionals should review the IRS FIRE retirement guidance and confirm that their software, credentials, and filing procedures are ready for IRIS.
Preparing Your Firm for the Transition to IRIS
For firms that prepare information returns every January, the move from FIRE to IRIS is more than a change in filing systems. It is an opportunity to review how staff collect information, prepare forms, and track submissions.
A consistent 1099 e-file process can make the transition easier.
Start by confirming which information returns each client needs to file. Review payer and recipient records, including names, addresses, and taxpayer identification numbers, before beginning form preparation.
Next, prepare the returns in Drake Accounting or another supported information-return solution. Resolve validation errors and confirm the filing method supported for the applicable tax year.
After transmitting the returns, review and retain IRS acknowledgments, resolve any rejected submissions, and document any state filing requirement.
Consider a firm preparing 140 Forms 1099-NEC for a construction company. Staff collect vendor information, reconcile payment records, and prepare the returns in Drake Accounting. Once the forms are transmitted through the supported IRS filing channel, the firm saves the acknowledgments with the client’s records.
When the same client returns for income tax preparation later in the year, the firm can easily locate the information-return filing history without confusing it with the Drake Tax MeF workflow.
That separation helps keep both services organized.
As your firm prepares for the move to IRIS, Drake Accounting helps you prepare and e-file supported information returns, acknowledgements, and manage corrections directly in the software. Explore how Drake Accounting can support your firm’s next filing season.
Frequently Asked Questions About IRS FIRE Filing
What Is the IRS FIRE System?
FIRE stands for Filing Information Returns Electronically. It is the IRS system historically used to electronically submit information returns, including many Forms 1099. FIRE does not handle individual income tax returns filed through Modernized e-File.
Is the IRS FIRE System Going Away?
Yes. The IRS has announced that FIRE will retire in November 2026. The final production filing deadline is November 19, 2026, at 3 p.m. Eastern time. Beginning in 2027, IRIS will handle information returns previously filed through FIRE.
What Is the Difference Between IRS FIRE and IRIS?
Both systems support electronic information-return filing. FIRE is the legacy system being retired, while IRIS is its replacement. IRIS offers a web-based Taxpayer Portal and Application-to-Application transmission software-based filing
What Is a TCC on the IRS FIRE System?
A Transmitter Control Code is a five-character code used to identify an authorized information-return transmitter. FIRE and IRIS use separate TCC application processes. Firms transitioning to IRIS should confirm which credentials they need for their filing method.
Does Drake Tax File Through FIRE?
No. Drake Tax uses the IRS Modernized e-File system to submit supported income tax returns. Information-return filing, including many Forms 1099, is handled through Drake Accounting or another supported information-return solution.
How Do I e-File 1099-NEC Forms With the IRS?
Prepare Form 1099-NEC using accounting or information-return software, verify the payer and recipient information, and submit the forms through an IRS-supported electronic filing method. As FIRE retires, firms should prepare to use IRIS through the Taxpayer Portal or supported software transmission.
Do I Have to e-File Form 1099-NEC?
Generally, businesses required to file 10 or more information returns in aggregate during a calendar year must file electronically, unless an exception or waiver applies. The threshold considers applicable information returns collectively, not just Forms 1099-NEC.
Review current IRS guidance to determine the requirements for each client.
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Sources and References
Primary Source
Internal Revenue Service — FIRE System Retirement and Filing Requirements
- Source: Internal Revenue Service
- Document type: IRS.gov electronic filing guidance
- Document/section: Filing Information Returns Electronically (FIRE), “FIRE system retirement” and “Key dates to remember”
- View IRS FIRE guidance
Internal Revenue Service — Transition to IRIS
- Source: Internal Revenue Service
- Document type: IRS News Release
- Document number: IR-2026-99, August 24, 2026
- Section: “Transitioning to IRIS”
- Read the IRS announcement
Internal Revenue Service — Electronic Information-Return Specifications
- Source: Internal Revenue Service
- Document type: Publication
- Document number: Publication 1220
- Section: Specifications for Electronic Filing of Information Returns
- View IRS FIRE publications and specifications
Disclaimers
This article is for informational purposes only and is not legal, tax, or financial advice.
All Drake Software offers, products, and services are subject to applicable terms and conditions.
