As of January 25th, 2023, the Internal Revenue Service (IRS) has opened a free filing portal. This allows businesses to file Form 1099 series information returns using the portal instead of having to send them to the IRS on paper. Doug O’Donnell, the IRS Acting Commissioner, says that the launch of this free portal “demonstrates their commitment to finding useful and innovative ways of reducing paperwork on the business community and others using 1099s. This is part of the larger effort underway to make improvements and transform operations at the IRS.” He also mentions that the IRS is excited to offer all business, especially small businesses, the opportunity to electronically file their 1099s.
What is the portal and how does it work?
The new free filing portal for 1099 forms is called the Information Returns Intake System (IRIS). At this current moment, the IRIS only accepts these forms for tax year 2022 and later. Filers will be able to leverage the platform to produce, upload, modify, and examine information, as well as access completed copies of 1099-series forms for validation purposes. IRIS allows businesses to e-file small and large amounts of forms by inputting the information manually or uploading a file through the use of a downloadable template. In order to e-file Forms 1099 with IRIS, apply for an IRIS Transmitter Control Code (TCC).
After receiving your TCC, you will be able to log in or create an account with IRIS.
Who can e-file Forms 1099 with IRIS?
According to the IRS, any person or entity can e-file Forms 1099 with IRIS. This includes:
- Individuals and small businesses
- Large businesses
- Tax exempt organizations
- Government agencies
- Software developers
- Third party filers
What are the benefits of using the IRIS portal to file 1099s?
Using the IRIS portal to file 1099s is very beneficial, especially for small businesses. The IRS has encouraged all businesses who file on paper to explore the benefits of switching to an e-filing platform. Benefits they have listed include:
- E-file security standards keep information safe and protected.
- The portal is an accurate filing method that automatically detects filing errors and provides alerts for missing information.
- Filers can submit automatic extensions and make corrections to information returns filed through the platform.
- The IRS acknowledges receipt of the return in as early as 48 hours.
- The platform keeps issuer information from year to year, and prior years filed through this platform, providing convenience to 1099 filers.
- Filers can submit up to 100 records per upload with CSV templates.
- E-filing eliminates trips to the post office and can reduce office expenses for paper, postage, and storage space.
Which Forms 1099 can I file?
The IRIS offers a variety of 1099 forms for filing, depending on an individual’s unique financial situation. Some of the most commonly used forms include 1099-MISC, 1099-NEC, 1099-INT, and 1099-DIV. Each form provides instructions on how to complete them and what information is necessary to file successfully. A few of the other forms that were not mentioned include:
- Form 1099-A, Acquisition or Abandonment of Secured Property
- Form 1099-C, Cancellation of Debt
- Form 1099-CAP, Changes in Corporate Control and Capital Structure
- Form 1099-G, Certain Government Payments
- Form 1099-K, Payment Card and Third-Party Network Transactions
- Form 1099-Q, Payments from Qualified Education Programs (Under Section 529 and 530)
- Form 1099-R, Distributions From an HSA, Archer MSA, or Medicare Advantage MSA
For the full list of Forms 1099 available, please visit the IRS website.
Thank you for reading this article and feel free to check out a previous one on our blog about 10 Common Tax Filing Mistakes to Avoid in 2023!