Businesses that file Forms 1099 electronically have two changes to prepare for before the 2027 filing season. The IRS is retiring its Filing Information Returns Electronically system, known as FIRE, and many common Form 1099-NEC and Form 1099-MISC payments will be subject to a new $2,000 reporting threshold for 2026.
The IRS announced on August 24, 2026 that current FIRE users must transition to the Information Returns Intake System, or IRIS, to file tax-year 2026 information returns during the 2027 filing season.
For businesses that manage contractor reporting internally, now is the time to update the filing process rather than discovering the change when January deadlines are approaching.
FIRE shuts down in November 2026
The IRS has established several transition dates for existing FIRE users:
- November 1, 2026: Last day to submit test information returns through the FIRE Trading Partner Test System.
- November 9, 2026: Last day to modify an existing FIRE Information Returns Application for a Transmitter Control Code, or TCC.
- November 19, 2026 at 3 p.m. Eastern: Last day to submit information returns through FIRE.
- January 1, 2027: IRIS becomes the IRS electronic filing system for information returns previously supported by FIRE, including current-year, prior-year, and corrected returns.
Businesses with unresolved prior-year corrections should account for this transition as well. A correction that would previously have been sent through FIRE may need to be transmitted through IRIS once the old system is unavailable.
A FIRE TCC does not replace an IRIS TCC
Businesses that file directly with the IRS should not assume their existing FIRE credentials will automatically carry over. The IRS directs current FIRE users to complete a separate IRIS Application for a Transmitter Control Code. The application can take up to 45 days to process, so waiting until information-return season creates unnecessary timing risk.
IRIS provides two primary filing methods. The free IRIS Taxpayer Portal allows filers to enter returns manually or upload CSV files and submit up to 100 returns at a time. Businesses and service providers handling larger volumes can use IRIS Application to Application through compatible software.
Companies that outsource 1099 preparation may not need to manage the transmission themselves, but they should still confirm that their payroll company, accounting platform, bookkeeper, or other filing provider has a plan for the IRIS transition.
The 2026 Form 1099 threshold is also changing
The filing system is not the only change affecting 2026 reporting. For payments made after December 31, 2025, the threshold for many payments reported on Forms 1099-NEC and 1099-MISC increases from $600 to $2,000. Aura’s guide to Forms 1099-NEC and 1099-MISC covers the underlying reporting rules.
For Form 1099-NEC, the $2,000 threshold generally applies to nonemployee compensation paid in the course of a trade or business. Several common Form 1099-MISC categories, including rents and certain other income payments, also move to $2,000.
Businesses should not apply $2,000 as a universal threshold. The 2026 IRS instructions retain different thresholds for certain categories, including royalties and gross proceeds paid to attorneys. Backup withholding can also create a reporting requirement regardless of the amount paid.
Vendor records should therefore be reviewed based on the type of payment, not simply removed from the reporting population because total payments were below $2,000.
Year-end vendor cleanup should start now
The FIRE transition and threshold changes make year-end vendor review especially useful for 2026. Businesses should:
- Confirm who will prepare and electronically transmit Forms 1099.
- Apply for an IRIS TCC if the business will file directly.
- Ask third-party providers whether they are ready for IRIS.
- Collect missing or updated Forms W-9 before year-end.
- Update accounting-system rules for the new reporting thresholds.
- Identify prior-year corrections that may remain outstanding.
- Review whether the business is subject to the IRS electronic-filing requirement.
The IRS generally requires electronic filing when a filer has 10 or more information returns in the aggregate. Businesses near that threshold should review the electronic filing requirements before deciding how their 2026 forms will be submitted.
How Aura Advisors can help with 2026 Form 1099 changes
The cleanest transition to IRIS starts before year-end close. Businesses should know who owns the filing process, whether the required IRIS access is in place, which vendors have complete tax documentation, and how the new thresholds affect the 2026 reporting population.
Aura Advisors can help businesses review their Form 1099 requirements, identify gaps in vendor documentation, evaluate electronic-filing obligations, and coordinate with internal accounting teams or outside providers. Addressing those items before filing season creates a more controlled process for both compliance and corrections.
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