How should businesses prepare for the FIRE to IRIS transition?

Businesses should prepare for the FIRE-to-IRIS transition by treating it as a systems, process, and compliance migration—not just a software update. Here’s a practical approach:

1. Understand what is changing

• FIRE (Filing Information Returns Electronically) is being replaced by IRIS (Information Returns Intake System) for many information return filings.
• Review which forms your organization files and whether they will move to IRIS, remain on another channel temporarily, or have special requirements.

2. Inventory all filings and workflows

• Identify every information return you submit, such as:
  • 1099 series
  • 1098 series
  • 1042-S
  • W-2G
  • Other IRS information returns, if applicable
• Map:
  • data sources
  • internal owners
  • vendor involvement
  • deadlines
  • correction processes
  • approval steps

3. Assess software and vendor readiness

• Check whether your payroll, tax reporting, ERP, or third-party filing provider supports IRIS.
• Ask vendors:
  • Is IRIS submission available?
  • What formats are supported?
  • Does the solution handle corrections and extensions?
  • How are acknowledgments and error responses managed?
• Get written confirmation of readiness and timelines.

4. Update data quality controls

IRIS will still require accurate, structured data. Businesses should:

• validate TINs, names, and addresses
• standardize tax year and form codes
• reduce duplicate or missing records
• improve controls around payer/payee master data
• test processes for corrections and amended returns

5. Build internal testing and contingency plans

• Run test filings if available through your software or vendor.
• Prepare for possible transition issues by:
  • allowing extra time before deadlines
  • retaining FIRE fallback knowledge where still applicable during transition periods
  • creating escalation procedures for rejected filings

6. Train relevant teams

Make sure finance, payroll, tax, IT, and operations teams know:

• new filing workflow
• approval responsibilities
• error handling procedures
• deadlines and escalation paths

7. Review security and access management

IRIS may involve new login/access procedures and authentication steps. Businesses should:

• review who needs IRS access
• update user permissions
• confirm identity/authentication requirements
• maintain secure recordkeeping for submitted filings and acknowledgments

8. Monitor IRS guidance closely

The transition may happen in phases, with different form types migrating at different times. Watch for:

• IRS announcements
• publication updates
• schema/format changes
• filing season guidance
• vendor notices

9. Create a transition timeline

Work backward from filing season:

• 6–12 months out: assess systems and vendors
• 3–6 months out: remediate data and update workflows
• 1–3 months out: test, train, and finalize contingency plans
• during filing season: monitor submissions and acknowledgments daily

10. Consider using a project owner

Assign a dedicated owner from tax or finance to coordinate:

• IT
• payroll
• compliance
• external vendors
• leadership updates

Bottom line

The best preparation is to inventory filing obligations, verify system/vendor support, clean up data, test early, and monitor IRS guidance. Businesses that treat the transition as a cross-functional project will reduce filing errors and compliance risk.

If you want, I can also provide a step-by-step FIRE-to-IRIS readiness checklist or a vendor questionnaire you can use internally.